Policy for the Determination of On and Off Campus Facilities & Adminstrative Cost Rates

 Background

 Facilities & Administrative costs, sometimes referred to as indirect costs or overhead, are those costs which cannot be easily identified with a particular project or grant with a reasonable degree of accuracy.  Facilities & administrative costs are real, actual expenses incurred by the University.  These costs include, but are not limited to, building use charges, equipment use charges, operations & maintenance, departmental administration, library, general expenses and sponsored projects administration. 

 Every three years, the University negotiates facilities & administrative cost rates with the Department of Health and Human Services.  These negotiated rates are applied to a modified total direct cost base and permit the University to recover overhead costs associated with research projects.  These rates are applicable to all federally sponsored projects and, in accordance with University policy, are also extended to include all other sponsored activities.  Full cost recovery is necessary to support the University’s physical and administrative capacity to perform extramural projects.

 Facilities & Administrative Cost Rates Currently in Effect

Determination of Appropriate Rate

Grants or contracts will not be subject to more than one rate. 

On-Campus:  The University’s on-campus rate is 64.1% and shall be applied to the modified total direct costs (MTDC) of all projects unless approval from the Finance office has been obtained.  MTDC consists of all salaries and wages, fringe benefits, materials, supplies, services, travel and subcontracts up to the first $25,000 of each subcontract.   MTDC excludes equipment, capital expenditures, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subcontract in excess of $25,000.

Off-Campus:  For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project, the off-campus rate will be applied.   When more than 50% of a project is performed off-campus, the off-campus rate will be applied to the entire project.  Project performance will be based upon direct salaries and percent of effort.  There are occasions when a project will be conducted off-campus for a short period of time while in travel status or at a field location during the summer.  Activities of this nature are usually not of sufficient duration to permit an off-campus rate.  If requesting the off-campus rate, a detailed calculation used to determine this lower rate will be required to be submitted with the proposal budget.

Waivers of F&A Costs

These rates are to be included under all proposals unless the granting agency has either disallowed indirect costs or only allows a percentage lower than our approved rate. There will be no waivers of indirect cost. If you wish to appeal for a waiver of indirect cost as a method of cost share under your proposal, you will need the approval of both the Division Dean and the Vice President for Finance and Administration.

(revised: 6/30/11)