The Indirect Cost Adjustment (ICA) document is used to adjust the amount of indirect cost expense charged to a Contracts and Grants account and automatically adjust the associated amount of indirect cost revenue.
Every Contracts and Grants account in the KFS has an associated Indirect Cost Recovery Account. When indirect cost is charged as an expense to a Contracts and Grants account, an equal amount of indirect cost revenue is generated in the corresponding Indirect Cost Recovery Account.
The ICA document is normally used to make small adjustments to align indirect costs with direct expenditures. This document might also be used to correct previous errors with the collection of indirect cost or to manually add indirect cost to an account when the KFS method of calculating indirect cost recovery as a percentage of direct costs is not sufficient. There are no special permission restrictions for the ICA document.