ICR Changes Questions and Answers

What parts of the Procedure have changed?
Changes include: 

  • Rate increased from 20% to 30% of total direct costs.
  • 100% (vs. the previous 85%) of the indirect costs go to the faculty holding the research funds.
  • One procedure - Application for Indirect Cost Recovery Rate Procedure - was rescinded. This means, there will now be no automatic adjustment to industry matching funding for awards involving matching contributions from a major granting agency (eg. NSERC, SSHRC, CIHR) and a private company to the university. Indirect costs will apply at 30% (vs. previous 0%) for matching industry funding under the new Procedure.
  • The 30% rate applies unless the sponsor has documented/publicized terms or policies regarding indirect costs.
  • Any other modified indirect cost rate must be approved by the dean. 

Why was this Procedure changed?
Our ICR rate has not been reviewed since 2013. We recently reviewed the ICR rates of our peer U15 universities and found ours was below theirs. Our new rate is still lower than several other universities across Canada (e.g., UToronto’s standard ICR is 40%).

When does the Procedure come into effect?
Any research funding application/proposal submitted to RSO after May 1, 2020 is subject to the revised procedure i.e., 30% ICR.

Has the internal ICR allocation changed?
Yes, 100% of indirect costs will go to the faculty holding the research project.