OMB Circular A-21 defines facilities & administrative costs as those that are incurred for joint objectives and therefore cannot be identified specifically with a particular project. Examples of these costs are:
The University charges F&A costs to projects based on predetermined percentages negotiated with the Department of Health & Human Services, our cognizant audit agency. The following rates are negotiated and approved by DHHS:
|Other Sponsored Projects||44.0%|
The off campus rate will be used when more than 50% of the project is performed off campus in facilities not owned by the University.
F&A charges are calculated by applying the approriate rate to the base, modified total direct costs charged to each project.
Modified Total Direct Costs Include:
Modified Total Direct Costs Exclude:
The University's policy is to charge F&A costs to all sponsored projects at the full rate. When situations arise which require a reduced rate or a waiver, the Vice Chancellor for Research should be contacted for approval.
F&A costs should not be considered profit to the University as they represent true costs associated with performing sponsored projects. Recovery of F&A costs is distributed in accordance with polices established by the Vice Chancellor for Research and the Vice Chancellor for Administrative Affairs. The majority of F&A recovery is returned to benefit the schools and departments generating the recovery.