Beginning August 1, 2022, Illinois State University will streamline budgeting for faculty members who are applying for grants. Human Resources, University Payroll, and Research and Sponsored Programs (RSP) have partnered to provide “pooled fringe rates” for indirect costs and expenses attached to a grant budget.
In the past, the University used actual costs, which fluctuate by individual. Composite or “pooled” fringe rates will now be used when budgeting and charging fringe benefits to a sponsored program (any account with a 115XX fund). Those who have a grant or are planning a grant proposal will be able to more accurately calculate the fringe rates applied to a position, regardless of the individual who gets hired for the role.
The pooled fringe rate will apply to all funds not considered “exempt” under 5 ILCS 375/11. For University purposes, the funds considered non-exempt are restricted and Foundation funds.
After several years of data analysis and negotiation, the federal government has agreed to the following fringe rates for employees:
| Employee Classification | Fringe Rate |
|---|---|
| Tenure-Track Faculty | 29.60% |
| Civil Service, Administrative Professionals, Non-Tenure Track Faculty | 47.60% |
| Extra-Help, Graduate Assistants, Students | 7.65% |
To comply with the new federal agreement, as of Aug. 1, 2022, all grants (including active awards) will be charged the fringe rates outlined above. These rates must be assessed on all personnel costs for all grants without exception. The rate Illinois State negotiated with the federal government requires all grants to be charged consistently for fringe costs. As with actual fringe rates, pooled rates will be reevaluated annually.
For projects that are already ongoing, RSP will be providing sessions for principal investigators and budget managers to rebudget existing funds. Given this change impacts both proposed projects and ongoing projects please be sure to attend one of these sessions. Sessions will be conducted in both July and August. Faculty can reach out to their award managers to sign up for an individual session. Questions related to this process change should be sent directly to RSP Senior Director Jason Wagoner at jwagone@IlllinoisState.edu.
