Policy for the Determination of On and Off Campus Facilities & Adminstrative
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
Facilities & Administrative Cost Rates
Currently in Effect
of Appropriate Rate
Grants or contracts will not be subject to more than one
On-Campus: The University’s on-campus rate is
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.