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Indirect cost rate (IDC) agreements define how facilities and administrative (F&A) costs are calculated and applied to sponsored programs, ensuring consistency, compliance and responsible stewardship of external funding.

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  Documents Cal State Monterey Bay’s federally negotiated indirect cost rates applicable to sponsored projects during the 2023–2025 period.

The Post-Award Manual provides guidance for managing sponsored projects after an award is received, supporting compliance, financial integrity and effective stewardship of external funding.

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  Serves as a reference for faculty and staff on post-award financial management, reporting, compliance requirements and roles and responsibilities throughout the life of a sponsored project.

This section provides guidance on common funding account types used at Cal State Monterey Bay, including how they are established, managed and monitored.

Incentives

Incentive accounts support faculty research, scholarship, creative activity and grant development through the distribution of a portion of indirect cost recovery.

How Incentive Accounts Work

The Incentive Program, administered by the University Corporation, allocates a percentage of net indirect cost recovery to principal investigators (PIs), departments, and colleges. Allocation percentages are based on the PI’s participation in indirect cost recovery and are distributed annually, typically in the spring.

Incentive accounts:

• Are assigned a unique Project ID beginning with “10002xxx”
• Reflect allocations in G/L 660090 as a budget amount
• Roll forward from year to year without expiration

If an incentive account enters a deficit, the deficit will be transferred to the incentive account of the associated department or college.

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  Provides step-by-step instructions for viewing incentive account activity and balances.
  

Donation Funds

Donation funds hold gifts and contributions designated for a specific purpose by the donor.

Because donors expect funds to be used as intended, all expenditures are reviewed for allowability to ensure compliance with donor restrictions and university policies.

Donation funds:

• Are assigned a fund number beginning with “7” (for example, 72170)
• Typically do not have a budget
• Are limited to the amount of donations received

Program Funds

Program funds track earned revenue and related expenditures generated by specific program activities.

These funds often originate from grant-funded initiatives designed to become self-sustaining after the grant period ends.

Program funds:

• Are assigned a fund number beginning with “6” (for example, 60120 or 60125)
• Usually do not have a budget
• Are limited to the revenue earned by the program
• Transfer net operating gains or losses to retained earnings at the end of each fiscal year

These policies set campus-wide standards for sponsored programs, financial management, and compliance.

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  Establishes overarching governance for externally funded programs at ÐÔÊӽ紫ý.
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  Defines institutional standards for indirect cost recovery.
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  Sets university requirements for transparency and accountability in federally funded work.
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  Establishes policy-level requirements for creating and operating service centers.
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  Provides guidance on charging direct and F&A costs to sponsored projects.

Sponsored Programs Administration

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  Establishes the university’s framework for administering externally funded grants and contracts.
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  Outlines required steps and approvals before submitting grant and contract proposals.
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  Defines how awards are reviewed, negotiated and formally accepted on behalf of the university.
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  Provides guidance for managing sponsored projects after an award is received.
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  Describes oversight responsibilities to ensure subrecipients comply with sponsor and university requirements.
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  Details reporting requirements to sponsors throughout the life of an award.

Costing, Effort and Financial Management

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  Explains how indirect costs are calculated, charged and distributed.
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  Defines which costs may be charged to sponsored projects and under what conditions.
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  Establishes requirements for transferring expenses between sponsored accounts.
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  Clarifies how employee effort on sponsored projects is documented and compensated.
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  Provides guidance for committing, tracking and reporting cost-sharing obligations.
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  Defines standards for assigning costs as direct or facilities and administrative.

Project Oversight and Closeout

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  Outlines steps for completing financial and administrative closeout of sponsored projects.
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  Details management, inventory, and disposition of equipment purchased with external funds.
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  Describes audit preparation and response requirements for sponsored projects.

Conflict of Interest

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  Establishes disclosure and management requirements for financial conflicts tied to federal funding.
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  Outlines conflict of interest requirements for non-governmental sponsors.
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  Details procedures for identifying and managing conflicts under governmental regulations.

Service Centers

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  Provides operational and financial guidelines for establishing and managing service centers.
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  Explains how to propose and request approval for a new campus service center.