RATIONALE: Limited understanding of “indirect cost” (IDC) recovery from grants and contracts and the IDC allocation policy at SF State among faculty, staff, and administrators is an impediment to robust shared governance budget deliberations and transparency. Faculty, staff, and administrators write competitive proposals for grants and contracts to bring in additional financial resources to help the university deliver on its mission. Universities charge grants and contracts a percentage of their budget to recover costs associated with supporting the work of the grants and contracts. The basis for the rates charged and the strategy informing the allocation policy for recovered indirect cost funds varies among universities. This Resolution calls for a task force of stakeholders to be convened to review the current IDC allocation policy and consider if revisions should be recommended. It further calls on the University Budget Committee (UBC) to include IDC recovery and allocation policy as a budget literacy learning objective.