What are F&A costs

What are Facilities and Administrative (F&A) Costs?

F&A costs are defined in OMB Circular A-21 as costs that are "incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity."  F&A costs are sometimes referred to as indirect costs. Examples of F&A costs include:

• Depreciation and interest costs associated with the University’s physical plant
• Operating and maintenance costs such as utility costs, security costs, and custodial costs
• Common administrative functions such as payroll and purchasing
• Sponsored project administration such as Research Financial Services

Because it is impractical to account separately for such costs, F&A costs are normally not charged as direct costs to sponsored projects.