- 1. Will this impact existing awarded grants or is this just for proposals as of July 1, 2011? Does this impact proposals submitted prior to the notification?
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This will impact all grants both awarded and proposals submitted prior to the notification of the new fringe rates. Proposals submitted after notification of the new fringe rates should use the new fringe rates in budget development.
- 2. Does this mean that undergraduate student assistants have a fringe rate of 7.7%?
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No, none of the fringe rates apply to student assistants as that is a separate employee type/category and not a part of the employee types we charge fringe rates to. If there is uncertainty of what employee type/category someone falls under, it would be best to double check with your department or college HR coordinator to find this out.
- 3. What benefits do graduate assistants (GRAs/GTAs) have for the 1.8% fringe rate?
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For GRAs this rate includes the following fringe benefits: MARTA/GRTA Subsidy and GRA/GTA Health Insurance. The GRA/GTA Health Insurance in the fringe rate is only the employer portion. Employees will still be required to pay their share.
- 4. Do I need to process an IPAS now for anticipated increase in fringe benefit expenses?
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You do not need to submit and IPAS right away if your project has the available funds in the fringe budget line or personal services to cover the increased costs. However, submit an IPAS if you don’t have enough funds in the fringe budget line or personal services but can cover this shortfall from other budget lines/categories (i.e. non-personal services).
- 5. Why do we have an increase in rates for full time employees?
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The increase in the overall fringe benefit rate for full time employees is a result of additional fringe benefits being added to how we calculate the fringe rate. Historically Georgia State University has covered these costs and not updated the way fringe benefits are calculated and charged to sponsors in over 13+ years. However, best practice for Research Universities uses a methodology of calculating and charging all actual fringe benefit costs to the sponsor.
- 6. Why do we have rates for Part time and Graduate Assistants now?
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Historically Georgia State University has covered these costs and not updated the way fringe benefits are calculated and charged to sponsors in over 13+ years. However, best practice for Research Universities uses a methodology of calculating and charging all actual fringe benefit costs for multiple employee types to sponsors. These fringe benefits are part of the true costs of doing research and therefore should be passed along to the sponsors.
- 7. What is the breakdown by percentage for each benefit that makes up the fringe rates? Can you show a breakdown of the fringe rates into their components, i.e., FICA, Retirement, and Medical Insurance by percentage?
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See the second page of the revised Fact Sheet for the breakdown by percentages. Click link here: http://www.gsu.edu/images/vp_research/GSURF-Fact.doc
- 8. What fringe rate do I charge ADP pay codes 09C & 09L who work more than 20 hours a week, more than .49 EFT?
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An employee in the 09C or 09L pay codes regardless of how many hours they work would not be benefits eligible like full time employees meaning, they would not be eligible for health, life etc. insurance and that would put them in the part time fringe rates category, 7.7% fringe rate.
- 9. Will a meeting be held to discuss the impact of these changes and how to best handle them in our departments?
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Two meetings/information sessions were held on Wednesday, Aug. 3rd 9:30-11:30 AM and 1:30-3:30 PM in Room 201 Urban Life Building.
- 10. Will both direct and indirect costs be impacted by the new fringe rates?
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Yes, both direct costs (new/increased fringe costs) and indirect costs (the F&A amount assessed on those direct fringe costs) will be impacted.
- 11. What fringe benefits do part time employees get?
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For Part time employees this rate includes the following fringe benefits: FICA, Worker’s Compensation, Unemployment, and MARTA/GRTA Subsidy.
- 12. Why is ADP Flex Spending included in the fringe benefit rate?
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It is included as the University pays a fee to administer this program.
- 13. What about the impact of the new fringe rates on existing projects? How will this be handled?
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The VP of Research & Economic Development and VP of Finance & Administration are going to take a comprehensive look at the financial impact of the new fringe benefit rates on GSU’s research portfolio. As it would be very time consuming to go through every project individually to see the impact created by the new fringe rate, we ask that you assist in this discovery process and evaluate the impact on your projects and send that to the research office. Please coordinate this effort within your College/Unit. You can send the evaluations to Cynthia Martin. The more information and the sooner we get this from individual units/depts., the better we will be able to come up with potential solutions. After reaching the best possible solution(s), a proposal to mitigate the impact of the new fringe rates on sponsored projects will be communicated to the research community.
- 14. What if my project is ending in the next few months (Aug.-Oct.)?
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If your project is ending in the next few months and it will be significantly impacted to the point there is no way the project will be able to cover the additional costs created by the new fringe rates, please contact Cynthia Martin to advise her of the overage amount this will create on your project. Please coordinate this effort within your College/Unit.
- 15. Should PIs send assessment/analysis of impacts to existing projects?
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Yes, we ask that you assist in this discovery process and take a look at the impact on your projects and send that to the research office. Please coordinate this effort within your College/Unit. You can send your assessments/analyses to Cynthia Martin. The more information and the sooner we get this from individual units/depts., the better we will be able to come up with potential solutions.
- 16. When will the fringe rate for Graduate students and Part time employees start?
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The charging of the new fringe rates for graduate students and part time employees will begin with the campus’ first bi-weekly and monthly payrolls in July 2011.
- 17. When will we see the new fringe rates applied to summer faculty salaries?
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The new fringe rates for summer faculty salaries will start in June 2012 as this summer, June-Aug. 2011, health & life insurance was already pre-paid in the previous fiscal year. For July and Aug. 2011, the old summer fringe rate will still be charged.
- 18. Will a GRA being paid from a residual account have the new fringe rate of 1.8%?
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Yes, the 1.8% fringe rate will be applied to a GRA being paid on a residual account.
- 19. Will the fringe rates change every year? Will we have new fringe rates every year?
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The current fringe rates are for FY 12 and FY 13. However, fringe benefit rates for each employee group will be reviewed annually to ensure an accurate allocation. Any over or under recovery of actual fringe benefit costs will be adjusted in the next rate calculation, which would go into effect for FY 14. So starting in FY 14 we will have new fringe rates each year.
- 20. Should we use the new fringe rates when submitting a budget for a continuation grant?
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No. As a continuation grant was awarded for multiple years using the old fringe rates, this is not a request for new funds. A continuation is submitted annually after the completion of the first year of the project and each subsequent year thereafter.
- 21. Should we use the new fringe rates when submitting a budget for a renewal grant?
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Yes, as a renewal grant generally extends the scope of the original work and includes a request for additional funds.
- 22. Will GRAs get the same health insurance as Post-Docs?
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No, GRAs will continue to get the same health insurance as they did prior to the new fringe benefit rates.
- 23. Do we need to do anything to have the old summer faculty fringe rates applied for July and August 2011?
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No, you do not need to do anything. This has already been taken care of by Accounting Services.
- 24. If a budget was submitted to the sponsor prior to the notification of the new fringe rates, should we go back to them and request a change?
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If you can, yes, go back to the sponsor and request a change to the budget that would include the new fringe rates. However, there might not be many sponsors who will allow you to do this.
- 25. Will the research office provide individual, grant by grant, reports on how the new fringe rates will impact projects?
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No. Although the VP of Research & Economic Development and VP of Finance & Administration are going to take a comprehensive look at the financial impact of the new fringe benefit rates on GSU’s research portfolio, it would be very time consuming to go thru every project individually to see the impact created by the new fringe rate. Instead, we ask that you assist in this discovery process and evaluate the impact on your projects and send that to the research office. Please coordinate this effort within your College/Unit. You can send the evaluations to Cynthia Martin.
- 26. Where are we on the effort to re-negotiate the F&A rate?
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We submitted our F&A proposal to the Department of Health and Human Services (DHHS) on Dec. 17, 2010. On Dec. 20, 2010 DHHS confirmed receipt of our proposal. Currently our proposal is under active evaluation and we recently submitted data request items to DCA for their review. For future updates see F&A proposal process web page found under the F&A rates page.
- 27. How will late processed salary payments be handled, will the new or old fringe rate be applied?
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The new fringe rate will be applied as the salary payment is being processed after the introduction of the new fringe benefit rates.
- 28. What fringe rate do I use for a Post Doc?
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In order to determine which fringe rate to use, you need to know the ADP pay code associated with the Post doc in question. For a Post doc in ADP pay code 09A you would use the full time employee fringe rate of 27.8%. For a Post doc in ADP pay code 09L you would use the part time employee fringe rate of 7.7%. If there is uncertainty of what ADP pay code a Post doc falls under, it would be best to double check with your department or college HR coordinator to find this out.
- 29. What if I don’t know the ADP pay code for the Post Doc as I am just in the proposal budget development stage?
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A Post doc with .75 or higher EFT would be in ADP pay code 09A and you would use the full time employee fringe rate of 27.8%. A Post doc with .74 or less EFT would be in ADP pay code 09L and you would use the part time employee fringe rate of 7.7%.
- 30. What fringe rate do I use for an employee with an appointment classification as an occasional staff?
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An occasional staff is a temporary employee and therefore falls into the part time employee category and you would use the part time employee fringe rate of 7.7%.