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New F&A rate agreement received

Posted: October 13, 2016

The university has just completed negotiations with DHHS on a 4 year F&A rate agreement. The agreement, dated September 23, 2016 establishes the rates shown below. These rates will apply through the end of FY20 and will continue to be used after that date until a new rate agreement is established.

Activity Period On-Campus % MTDC Off-Campus % MTDC
Research 7/1/2016 – 6/30/2017 54% 26%
7/1/2017 – 6/30/2018 55% 26%
7/1/2018 – 6/30/2020 56% 26%
Instruction 7/1/2016 – 6/30/2020 52% 26%
Other Sponsored Activities 7/1/2016 – 6/30/2020 30.5% 24%

MTDC (Modified Total Direct Costs) means all costs except equipment (stand-alone items with a useful life of a least 1 year and a unit cost of at least $5,000); capital expenditures (alterations and renovations); patient care costs; tuition; scholarships and fellowships; rental of off-site facilities; participant support costs; and subaward costs in excess of $25,000.

Please see the rate agreement for additional information about on-campus/off- campus designations and the components of the F&A rate.

Implementation

New proposals

Investigators should begin using the new rates in proposals immediately. For example, if proposing work that runs 7/1/17 – 6/30/20, use 55% for the first budget year (7/1/17 – 6/30/18) and 56% for the second and third budget years (7/1/18-6/30/20).

For awards that begin mid fiscal year, and therefore two different F&A rates would apply, it may be reasonable to assume a constant burn rate throughout the year, and therefore costs may be prorated in the proposal budget, e.g., in the first year of an award with a start date of Jan 1, 2018 F&A would be charged at 55% for the first 6 month and at 56% for the second 6 months. Or, you may use average rate of 55.5% for the 12 months.

New or competing continuation proposals submitted but not yet funded

OSP will work with sponsors to obtain the new F&A rate whenever possible. However, if we cannot obtain additional funds, direct costs will be protected and will not be reduced to cover the increase in F&A rate.

Currently active projects

These projects will continue to be charged their current rate, as proposed and awarded, until the next competitive segment or other natural break point.

If you have questions, please contact your department’s sponsored program officer.

Category : F&A Rates