The University transfers to each college an amount of funds proportional to the indirect cost recoveries generated by its faculty. The College of Liberal Arts and Sciences distributes to each department a significant portion of the transferred funds attributable to that department's grants and contracts, so long as the amount to be returned is at least $1,000.

The department uses this transfer during the current fiscal year to support funded research projects—for instance, to pay for staff time, general expenses, equipment repair, and other costs related to funded research but not included as direct costs in grant budgets. The DEO should budget the funds centrally rather than returning them to the individual investigators whose work is supported by external grants. Program number 5-2561000 is used in the MFK for expenditures from this allocation.

The College retains a portion of the funds transferred from the University, which it allocates under a match agreement with the Office of the Vice President for Research. These allocations are made in response to specific requests from departments for grant-related expenses. Organizational account number 510 is used in the MFK for these expenses.