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Planning and Resource Allocation Office

 

The indirect cost charge (ICC) is an overhead charged on pay costs met from certain non-Chest sources of funds. The charge is intended to recognise and recover part of the central and local infrastructure costs of non-Chest funded activity. The sources of funds covered by the ICC are:

  • external trading
  • general and specific donations
  • departments' share of charity QR
  • departments' shares of non-direct costs (excluding pooled labour) and research overheads

The ICC was approved by the Resource Management Committee (RMC) in June 2011 and replaced the Finance Working Party (FWP) levy, which had operated since 2003.

An overhead recovery target is applied at School (or non-School institution) level based on pay costs incurred during the year. This single, School-level target enables Schools, in coordination with Faculties and Departments, to determine exactly how thetarget will be achieved in any one year. For advice and guidance please contact your School (or equivalent) Finance Manager.

The 2016/17 ICC rates agreed by the RMC at the meeting held on 10 October 2016 are as follows:

  2016/17
School of the Arts & Humanities 28%
School of the Humanities & Social Sciences 26%
School of the Physical Sciences 28%
School of Technology 28%
School of the Biological Sciences1 28%
School of Clinical Medicine2 23%
UAS 21%
Non-School Institutions3,4 28%
  1. Veterinary clinical teaching staff in the Veterinary School are ICC exempt.
  2. All NHS- funded teaching staff are ICC exempt.
  3. The ADC Theatre receives credit (£19k in 2015/16) for utility costs paid directly which offsets the NSI 28% ICC levy.
  4. CISL is ICC exempt however a indirect cost contribution is made based on the latest RAM cost attribution rates (per £k pay and non-pay expenditure and space m2),   

When preparing applications for external funding from sponsors who are unwilling to meet the ICC, Schools and institutions must think holistically about how the shortfall might be covered, taking into account all available funding and considering the option of setting aside part of the Chest allocation for this purpose. In exceptional cases, if the overhead cannot be met from another source of funds, support from RMC must be sought before an application is submitted.

Trust Fund overheads

Pay costs met from Trust Funds are not covered by the ICC scheme. For further information, please see the relevant section of the Financial Procedures manual (section 4.2).