Facilities and Administrative (F&A) or Indirect Costs
Facilities and administrative (F&A) costs are those incurred for common or joint objectives and cannot be identified readily and specifically with a particular sponsored project. F&A costs are also referred to as indirect costs. Generally, examples of indirect costs include:
- Operation and Maintenance of Facilities
- Security and Safety
- Financial and Accounting Services
- Procurement Services
- General Maintenance of University Equipment
- General University and Departmental Administrative Expenses
- Use of Computing Resources
- Equipment and facilities use allowance (depreciation)
The most important thing to note about facilities and administrative (F&A) costs is that they are provided to the University as a reimbursement for real historical costs incurred in maintaining the infrastructure for research and sponsored projects. University policy is that F&A costs, along with direct costs, are to be included in sponsored program budgets and maximized at the full applicable and allowable rates.
UNI has standard F&A cost rates for on- and off-campus. The standard rates are negotiated and approved by Department of Health and Human Services. The current on-campus F&A cost rate is 31.5% and the current off-campus F&A cost rate is 13.5%
F&A costs benefit the sponsored project but are initially paid for by the University. The F&A cost rate (expressed as a percentage) is charged on each sponsored project to reimburse the University. Depending on the particular type of program proposed, the appropriate indirect cost rate is typically applied to Modified Total Direct Costs (MTDC). Modified Total Direct Costs are calculated as Direct Costs less equipment and capital expenditures, scholarships and fellowships, remitted tuition, rental costs, and the portion of subcontracts in excess of $25,000 (as per the federal OMB Circular A-21).