Division of Financial Services
Accounting
The following excludes Weill Cornell Medicine gifts processed in SAP.
Indirect Cost (IDC) or Indirect Cost Recovery (ICR) is a 10% administrative charge assessed on expenditures made from restricted gift accounts.
The IDC revenue is posted to a high-level account by a college/unit, and the IDC expense is posted to the restricted gift account per the Indirect Cost Recovery Matrix. See the Indirect Costs Recovery Entry section below for more details.
All restricted gift accounts receive a 10% administrative cost charge on expenses, except for the following:
Indirect cost recovery (ICR) entries are automatically posted via a nightly process in KFS. The ICR entry is calculated and posted based on the sum of total expenses incurred on each restricted account. The credit entry posts revenue to a high-level unrestricted college/unit account. The ICR Account Number can be found under the Indirect Cost Recovery Accounts tab in KFS. Use the CGGIFT/RGGIFT account number that corresponds to the org number in the Indirect Cost Recovery Account Matrix as the ICR account number when entering the ICR Account Number in the KFS Account e-doc. The ICR account number by college/unit is listed on the Indirect Cost Recovery Account Matrix (PDF, 110 KB).
The KFS automatic nightly entry is as follows:
Both object codes (9080 and 4270) report to the Contributions line on the Statement of Activities and net to zero.
The table below shows the IDC attributes for restricted gift sub-fund programs:
| Sub-Fund | Sub-Fund Program | Indirect Cost Recover Type Code | Indirect Cost Rate | IDC |
|---|---|---|---|---|
| RGGIFT | ENDINC | 0 | 0 | 0% IDC |
| RGGIFT | ALUMNI, GIFT, GFTREP | 25 | 810 | 10% IDC |
| RGGIFT | ALUMNI, GIFT, GFTREP | 25 | 0 | 0% IDC |
IDC attributes are available on the KFS Account search screen, located under the Contracts and Grants tab.
Note: No other indirect cost recovery type codes can be used with restricted gifts (RGGIFT), other than sponsored agreement gifts (CGGIFT).
Note: No other indirect cost recovery rates can be used with restricted gifts.
If a college opts to waive the 10% IDC, internal control procedures should be in place. It is recommended that the procedures include:
The college’s (or associated business service center’s) approval of the KFS e-doc (new accounts or edit changes) denotes responsibility for ensuring appropriate approval of the 10% per established college-level procedures.
The University Budget Office (UBO) will continue to review and approve waivers for administrative units. To obtain UBO approval of the waiver, ad-hoc the e-doc with the appropriate documentation attached to the UBO.
Colleges and units (with authorization from the UBO) may process a correction to a restricted gift account for the current fiscal year only. Attach documentation that supports the current-year charges for the amounts processed in the e-doc.
The entry is as follows:
Some sponsored awards are in fund CG and sub-fund CGGIFT. These accounts follow the rate practices managed by the Office of Sponsored Programs as part of the proposal and award processes. Such rates may vary from 10%, and be applied to a cost base other than Total Direct Cost.
For further information contact Sponsored Financial Services.
