Please see pages 16-17 in the budget prep instructions, particularly under the heading Fund 1026 - Indirect Cost Recovery at the top of page 17. The rest of the discussion largely applies only to units that receive ICR directly.
In brief, in budgeting for FY11 you'll have to use fund 1024 instead of 1026 for ICR. Starting in period 13, you will be able to transfer ICR balances from 1026 to 1024, so the carryforwards in 1024 will be correct in FY11. Personally, I believe the workload required to move every ICR dollar in every unit from 1026 to 1024 is too great to achieve 100% in period 13. We can continue moving balances in FY11, and by the end of FY11 all ICR should be in 1024.
We can't start the transactions to move ICR from 1026 to 1024 until period 13, but I encourage everyone to start looking at this now. For large, complex departments it may be a challenge to separate what is ICR (and should move to 1024) from what is Other Unrestricted Funds (and should stay in 1026). DJP