Office of Sponsored Programs (OSP)

How to Calculate Facilities and Administrative (F&A) Costs

The current facilities and administrative rate agreement for federal grants and contracts has a negotiation agreement date of November 17, 2014. This agreement is effective until modified.

 

The current F&A rates are calculated from MTDC (modified total direct costs) and are as follows:

Current F&A Rates

Percent Location Type of Project Effective Dates
49.5% On Campus Organized Research 09/01/14 - 08/31/15
52.5% On Campus Organized Research 09/01/15 - 08/31/18
26.0% Off Campus All Programs 09/01/14 - 08/31/18
45.0% On Campus Instructional 09/01/14 - 08/31/18
39.0% On Campus Other Sponsored Activities 09/01/14 - 08/31/18

 

Modified Total Direct Costs - MTDC consists of all projected costs minus the following exclusions:

  • equipment over $5,000
  • capital expenditures
  • charges for patient care
  • tuition remission
  • rental costs of offsite facilities
  • scholarships
  • fellowships
  • the portion of each subgrant and subcontract in excess of $25,000

 

Sample budget:

$132,500

Salaries

$31,500

Fringe Benefits

$68,000

Materials and Supplies

$10,000

Equipment

$2,000

Travel

$6,000

Tuition

$250,000

Total Direct Cost (TDC) (for NIH - item 7a on face page)

 

Definitions:

TDC = Total Direct Cost
MTDC = Modified Total Direct Cost
F&A = Facilities and Administrative Costs

Sample F&A calculations

 

When a single rate applies for the entire budget period:

TDC

-

Exclusions

=

MTDC

$250,000

-

16,000 (equipment & tuition)

=

$234,000

         

MTDC

x

F&A rate

=

F&A (for NIH - item 3a on checklist page)

$234,000

x

.525

=

$122,850

         

TDC

+

F&A

=

Total Cost (for NIH – item 7b on face page)

$250,000

+

$122,850

=

$372,850

 

When the rate changes in the middle of a budget period:

Budget Period = 7/1/15 - 6/30/16. The F&A rate is 49.5% for the first two months (7/1/15 - 8/31/15) and 52.5% for the last ten months (9/1/15 - 6/30/16). Calculate average monthly costs, and apply the correct F&A rate as follows:

TDC

-

Exclusions

=

MTDC

$250,000

-

16,000 (equipment & tuition)

=

$234,000

$234,000 MTDC

/

12 months per year

=

$19,500 average monthly costs

         

7/1/15 - 8/31/15

=

$19,500 x 2 months

=

$39,000 MTDC (at 49.5% F&A)

9/1/15 - 6/30/16

=

$19,500 x 10 months

=

$195,000 MTDC (at 52.5% F&A)

         

MTDC

x

F&A rate

=

F&A (for NIH - item 3a on checklist page)

$39,000

x

.495

=

$19,305 (F&A 7/1/15 - 8/31/15)

$195,000

x

.525

=

$102,375 (F&A 9/1/15 - 8/31/16)

Total F&A = $19,305 + $102,375 = $121,680

         

TDC

+

F&A

=

Total Cost (for NIH – item 7b on face page)

$250,000

+

$121,680

=

$371,680

 

F&A Sample Checklist

 

Revised November 2014