Facilities and administrative (F&A) costs are those costs associated with providing and maintaining the infrastructure that supports the research enterprise (buildings and their maintenance, support offices, etc.) and which cannot easily be identified with a specific project. The university requires including the appropriate F&A costs in all proposal budgets, unless the sponsor specifically prohibits them, and it expects that F&A costs will be recovered to the maximum extent possible.
F&A cost rates are determined in conjunction with auditors from the U.S. Department of Health and Human Services. The following F&A rates are based on the DHHS rate agreement, effective July 1, 2013 through June 30, 2017:
- 40.5% - Organized Research: Research and development activities, including the training of individuals in research techniques
- 49% - Instruction (Training Grants): Instructional or training activities established by grant, contract, or cooperative agreement. This does not include tuition reimbursements for curriculum that is already in place at the University.
- 32% - Other Sponsored Activities: All sponsored activities except for Organized Research and Instruction.
- 26% - Off Campus: Activities performed facilities not owned by the institution and to which rent is directly allocated to the project(s). Actual costs will be apportioned between on-campus and off-campus components. Each portion will bear the appropriate rate.
These rates will be applied to a Modified Total Direct Costs (MTDC) base.
Costs included in the MTDC consist of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract).
Costs excluded from the modified total direct costs consist of equipment (in excess of $5,000), capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.
In rare circumstances, a department and college may wish to propose a rate lower than which the sponsor routinely provides. In such events, an Indirect Cost Waiver must be completed, signed by the department head, dean, and Vice President for Research. This waiver should be included with the project proposal.