Overhead Recovery Fee

This message is sent on behalf of Real Del Degan, Interim Director, Office of the Budget and Cristiane Tinmouth, Controller, Financial Services

Dear Colleagues,

Further to the memo sent by the Provost to each of the Deans and Vice-Principals on 12 February 2015 regarding budget measures, in order to achieve the proposed operating budget target, the overhead recovery fee currently being charged on actual revenues earned in non-1A unrestricted funds, will be increasing from 2.5% to 3.0%, effective May 1, 2015.  The process for collecting and recording of this fee will continue on a quarterly basis, as before.

In the month following the end of a fiscal quarter, revenues earned in non-1A unrestricted, non research-related funds (i.e. fund types 1B, 1C, 1D and 1E) during that respective fiscal quarter will be subject to a charge of 3.0%. The resultant amount will be posted to account code, 700694 – Central OH Unrestricted Funds, with the offset being the University’s accumulated deficit.
                             
Please note that unrestricted start-up grants and service agreements will be excluded from this charge.  The Fund Financial Manager will be responsible for ensuring accurate recording of revenue generating activities in the appropriate fund type.

All existing exemptions to this fee will continue to be honored.  Please refer to the knowledge base article for additional information using the undernoted link:
http://kb.mcgill.ca/fskb/easylink/article.html?id=4027

Should you have any questions concerning this overhead recovery fee, please contact Real Del Degan, Interim Director, Office of the Budget (ext. 2988) or Cris Tinmouth, Controller (ext. 2310)

Thank you

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