Whenever a sponsor does not allow the Institute to charge the full rate for recovery of facilities and administration (F&A) or indirect costs, it creates an underrecovery. This occurs most frequently with foundation sponsors.
MIT policy requires that underrecovery of F&A on research activities funded by sponsored awards be identified and funded internally. The Vice President for Research is committed to supporting research projects that incur underrecovery of F&A and is working the deans across all areas to identify resources. The process for securing funds to offset F&A underrecovery varies across departments, laboratories and centers and within each school. Principal Investigators who are considering applying for foundation support should consult with their local administration and/or dean’s office for details on the internal process.
An overview of underrecovery and the process for administering awards with underrecovery can be found at F&A Underrecovery on Research WBS Elements