Some externally-funded fellowships, such as NIH Training Grants or NSF Fellowships, provide an institutional allowance for the benefit of the fellow. This allowance is exempt from GSS. When the Office of Sponsored Research (OSR) transfers this allowance to a departmental PTA, the PTA is exempt from the GSS surcharge. Expenditures subject/not subject to GSS should not be commingled in the same PTA.

Fellowship stipends paid to Postdoctoral Scholars (expenditure type 57840) and to non-matriculated students including Visiting Researchers (expenditure type 57860) are NOT charged the GSS rate, as neither of these groups receives a Cardinal Care subsidy.

All fellowships awarded by external sources, where the awards, projects and tasks are established by the Office of Sponsored Research are EXCLUDED from the application of this surcharge (award range PAAAA-VZZZZ). In addition, no GSS is applied on cost sharing PTAs, miscellaneous receivables, capital projects, service centers or auxiliaries.

In general, stipend payments (charged to the expenditure types listed above) from Stanford operating budget PTAs, or from School or Department PTAs, will be assessed the GSS rate.

Both the surcharge and RA/TA fringe subsidize eligible graduate student Cardinal Care health insurance. The Provost’s Office reviews and adjusts the GSS rate as necessary each fiscal year.

Graduate student fellowship stipends charged to the expenditure types noted below and paid by internal sources of funds are assessed GSS to help subsidize their health care benefit. The subsidy appears on expenditure statements in expenditure type 57640 GS Health Insurance Recovery. The financial system automatically applies the surcharge to eligible transactions in the form of a rate.

Implementing Infrastructure

Implementing the Revised Infrastructure Charge (ISC) Policy More information about this policy can be found in the Stanford Administrative Guide 8.3.1

August 31, 2005 Rev: November 8, 2010

The Board of Trustees of Stanford University approved a revised infrastructure policy in October 2004.The revised policy, effective September 1, 2005, increases the infrastructure charge from 6% to 8% for both new and existing funds. For designated funds, the infrastructure charge will be applied at the time funds are received from all external revenue sources. For restricted funds (expendable gift funds, endowment income funds and sponsored project funds that carry an F&A rate of 0%), the infrastructure charge will be applied at the time funds are expended or transferred.

Gifts for building projects are waived from the infrastructure charges. Gifts of donated capital equipment are waived from infrastructure. However, restricted funds used to purchase capital equipment will be assessed ISC.

The infrastructure charge collected from non formula schools will be credited 75% to a central university PFOO (controlled by the budget office) and 25% to a central PFOO owned by the budget unit involved in the transaction. The infrastructure charge collected from formula schools and auxiliaries will be credited directly to a central PFOO belonging to the formula school or auxiliary.

Any exceptions to the policy require approval of both the Provost and the CFO and are to occur rarely, if at all.

This guide provides additional detail implementing Administrative Guide Memo 8.3.1 Infrastructure Charges.

Infrastructure Charge

Awards are subject to the revised infrastructure policy as follows (see additional guidelines concerning sponsored projects below):

Designated funds are assessed the infrastructure charge on revenue in General Ledger codes 43xxx, 44xxx and 46xxx. The charge will appear on the fund statement only in General Ledger codes 48990 or 48992.

Expendable gift and endowment income funds are assessed the infrastructure charge on expenditures and fund transfers including transfers to operating budgets and designated funds. The charge on expenditures will appear in expenditure types 58915 or 58935 on the expenditure statement. The charge on fund transfers will appear in General Ledger codes 49710 or 49720 on the fund statement only. Expendable gift and endowment income funds marked "Donor Exempt" prior to September 1, 2005 are waived from infrastructure. All other expendable gift and endowment income funds are subject to the revised infrastructure policy.

Non-government and foreign government sponsored project awards are assessed the infrastructure charge on expenditures. The charge on expenditures will appear in expenditure types 58915 or 58935.

Operating budgets, budget pools, service centers, auxiliaries, miscellaneous receivables, reserves, pending funds, U.S. government sponsored projects, University Research, plant, student loans, agency and living trust funds/awards and the SLAC National Accelerator Laboratory are waived from infrastructure by the revised policy.

The utility charge is discontinued.

The following schedules define the revised infrastructure process in detail:

Infrastructure Exemptions and Waivers

Any exceptions to the revised ISC Policy require approval of both the Provost and CFO and are to occur rarely, if at all. If the source of funds, typically a donor or sponsor, will not pay the infrastructure charge, the department or office may request to pay the charge themselves by applying to the Budget Office for permission to use an alternate PTA (project/task/award). Departments must use the "Request for Infrastructure Exemption" form. The alternate source of funds must be able to support an expense of this nature. Designated, endowment income or expendable funds may be used. Sponsored projects may not be used. See additional guidelines concerning sponsored projects and exemptions below. If the exemption is not granted by the Provost and the Chief Financial Officer, the funds must be refused.

Any questions about requesting a waiver to the ISC Policy should be directed to Dana Shelley in the Budget Office at ext 5-1256.

A waiver of F&A (indirect costs) granted by the Dean of Research does not waive infrastructure.

Infrastructure and Sponsored Projects

The revised Infrastructure Charge Policy applies to sponsored project awards assessed an F&A rate of 0%. Awards with F& A rates between 0% and 8% are not charged infrastructure but instead are charged their negotiated F&A rates.

However, all sponsored projects awards with award start dates prior to 9/01/05 and awards made in response to previously-submitted sponsored projects proposals will continue to be subject to the prior ISC policy until the end of their competitive segment. At the time these projects are renewed, funding must be requested using the revised ISC guidelines.

Sponsored project awards are subject to the revised Infrastructure Charge Policy as follows:

The infrastructure charge is waived on all U.S. government - funded sponsored project awards. This includes awards directly funded by a federal, state or local governmental agency and awards that are funded on a “flow-through” basis using government monies.

The infrastructure charge is exempted (e.g., an alternate PTA is provided by the PI/department to pay the ISC charge) on all non-government sponsored project awards where the sponsor has a written policy stating that it does not pay indirect costs.

Effective 9/1/05, if a sponsor/program is not waived or exempted under the rules listed above, the PI/administering department must include the infrastructure charge in their proposal/budget request to the sponsor. Institutional officials are responsible for reviewing proposals to make sure that the charge has been included, prior to endorsing the proposal on behalf of Stanford, or that an approved “exemption” (see below) is on file.

If a sponsor/program is not exempted as outlined above, the department may request to pay the infrastructure via an alternate PTA by submitting a "Request for Infrastructure Exemption" form to the Provost Office. Exemptions must be approved in advance of submission of a proposal.

Unobligated funds remaining at the expiration of a fixed price sponsored project that are transferred to a departmental PTA on or after September 1, 1999, are not subject to the infrastructure charge provided the funds were assessed an F&A rate of 8% or greater. These funds are transferred to a departmental PTA, less the facilities and administrative costs (formerly referred to as indirect costs) that would have been assessed on additional project expenditures.

Institutional allowances associated with fellowships are exempt from infrastructure. Best practices recommend the institutional allowance should be spent on the sponsored award. However, the schools and departments may transfer the allowance to an existing PTA where the expenditure will not be assessed infrastructure. Please contact your OSR representative for additional guidance.

For questions about infrastructure charge policy, exemptions or waivers, contact Dana Shelley. For questions related to sponsored projects please contact Vrinda Gopal. For all other inquiries, please call your Fund Accounting representative or the Manager of Fund Accounting in the Controller's Office.