Office for Research and Graduate Studies

Redistribution for Overhead (F&A), Residual and ECFVG Funds

Purpose: These guidelines provide a framework for equitable and consistent redistribution of F&A, residual, and ECFVG funds when a faculty member resigns, retires or is dismissed from his/her position.

Justification: As faculty perform their jobs, they have the opportunity to share in overhead and ECFVG fund distribution. With some contractual arrangements, when the contractual work has been completed any remaining funds can be distributed to the faculty member or members directly associated with completing the contractual agreement. All overhead, residual, ECFVG and foundation funds are technically owned by Mississippi State University and therefore belong to the State of Mississippi. Because these funds belong to the State, administrators within units of the College of Veterinary Medicine must reassign the funds to other accounts upon the resignation, retirement, or dismissal of a faculty member.

Guidelines:
When a faculty member resigns his/her job, retires, or is dismissed:

  1. Overhead funds accrued by a faculty member during the performance of job duties and responsibilities as an agent working through or for the department only, shall be returned to the departmental overhead account of the faculty member.
  2. Overhead funds accrued by a faculty member (hard money faculty position) during the performance of his/her job where those duties are directly associated with one of the research centers in the college, will necessitate that any overhead funds remaining be equally distributed to the faculty member’s department and to the appropriate center.
  3. Overhead funds accrued by a faculty member who is paid 100% by a grant or contract in a center, including the Mississippi Veterinary Research and Diagnostic Laboratory System, or by the center through some other means shall have those funds redistributed in their entirety to the center (or MVRDLS). If a research assistant professor is hired and paid 100% from a grant or contract of another faculty member and the research assistant professor accrues overhead funds, the funds shall be redistributed to the department and the faculty member holding the grant.
  4. Contracts resulting in residual funds that only recovered partial or no overhead and that are equal to or greater than $10,000 shall be redistributed using the college policy for distribution of overhead (i.e., Dean’s Office – 40%, Office of Research – 20%, and department of faculty member – 40%). Residual funds that have generated full overhead recovery and have been distributed according to the July 2002 policy on facilities and administrative cost recovery shall remain in the department of the retiring or resigning faculty member.
  5. ECFVG funds no matter what the amount shall be redistributed in the following manner. ECFVG funds of faculty shall be redistributed back to the department of the faculty member. Funds of staff shall be redistributed to the working home unit of the staff member, e.g., to AHC or the diagnostic lab.
  6. A residual fund account of a faculty member containing less than $10,000 shall be redistributed directly to the home department of the faculty member.
  7. Funds remaining in foundation / development accounts shall be redistributed according to the prescribed polices and guidelines of the MSU Development Foundation. In these situations the Development Foundation personnel will contact the donor to determine his/her wishes.

Once a faculty member informs his/her department head or other administrator that he/she plans on resigning or retiring from his/her faculty position, all expenditures from overhead, residual, and development foundation accounts shall be approved by the appropriate administrator before expenditures can occur.
Exceptions to these redistribution guidelines require a consensus by the affected administrator(s) and approval by the Dean of the College.


Approved April 2006