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:
Modified Total Direct Costs - MTDC consists of all projected costs minus the following exclusions:
Sample budget:
Definitions:TDC = Total Direct Cost Sample F&A calculations |
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 |
Revised November 2014