How are F&A Rates Applied to Individual Grants and Contracts?
F&A costs are charged to individual awards as direct costs are incurred. The University does not recover F&A costs from sponsors until direct costs are charged to the award. F&A is typically applied to modified total direct costs (MTDC) of awards. This is referred to as the “F&A Base” and is the same base on which the University calculates and negotiates rates with DCA.
MTDC represents the total direct costs of a sponsored project less the cost of equipment over $5,000, capital expenditures, alterations/renovations, space rental costs, student stipends, tuition, scholarships and fellowships, participant support costs, and the portion of each subaward/subcontract in excess of $25,000 within a competing segment of an award.
|A researcher buys supplies on award||$100|
|The actual F&A rate on the award||47.5%|
|The university collects the F&A cost associated with that direct cost (supplies)||$47.50|
|The same researcher purchases a piece of equipment for $10,000||No F&A cost would be collected on that particular direct cost (equipment over $5,000)|