It is a goal of the State of Texas to increase research activities within the state. Toward this end, the State allows state colleges and universities to retain earned facilities and administrative (indirect) costs (aka IDC or F&A). It is expected that this return will provide seed funding which will result in greater research activity and funding. UH has a policy of returning a portion of the earned F&A recovery on a pro-rata basis to the college that generated this income.

The following formulas apply to the portion of the funds that are returned to the generating units:

When a single investigator, department and college are involved, the F&A funds returned to operating units are distributed as follows. In the case of multiple principal investigators, multiple departments, or multiple colleges, each unit will participate on a proportionate basis, in accordance with the distribution identified on the transmittal form.

• 56% to the college
• 44% to the department

Individual colleges may return more to their departments, and departments may share IDC with PIs. The following distributions are in place:

• Gerald D. Hines College of Architecture and Design:
  • 100% college
• Katherine G. McGovern College of the Arts:
  • 100% college
• C.T. Bauer College of Business:
  • 100% college (distribution to in-house centers and institutes varies)
• College of Education:
  • 50% college
  • 25% department
  • 25% PI
• Cullen College of Engineering:
  • 56% college
  • 44% department (distribution to PIs varies by department)
• Conrad N. Hilton College of Hotel and Restaurant Management:
  • 100% college
• UH Law Center:
  • 100% college
• College of Liberal Arts & Social Sciences:
  • 100% department (distribution to PIs varies by department)
• College of Medicine:
  • Not yet determined
  • Contact Paule Anne Lewis
• College of Natural Sciences & Mathematics:
  • 56% college
  • 44% department (distribution to PIs varies by department)
• College of Nursing:
  • 100% college
• College of Optometry:
  • 100% college
• College of Pharmacy:
  • 46% college
  • 36% department
  • 18% PI
• Graduate College of Social Work:
  • 56% college 
  • 44% research centers 
• Hobby School of Public Affairs:
  • 100% college
• Honors College:
  • Not applicable
• Libraries:
  • 90% college
  • 10% PI

Uses of Returned Indirect Funds

Texas Constitution and Statutes, Education Code, Chapter 145.001 defines the use of IDC funds returned to departments and units:

“The funds shall be expended under guidelines approved by the institution’s governing board for projects encouraging further research at the unit, agency, or department level at which the research was conducted, including: conducting early pre-grant feasibility studies; preparing competitive proposals for sponsored programs; providing carryover funding for research teams to provide continuity between externally funded projects; supporting new researchers pending external funding; engaging in research programs of critical interest to the general welfare of the citizens of this state; purchasing capital equipment directly related to expanding the research capability of the institution; and research or project administrative costs; and the funds remaining after the application of Subdivision shall be used by a general academic teaching institution or a medical or dental unit to support research as approved by a general academic teaching institution or a medical or dental unit.”