Costing Policy & Analysis
Facilities & Administrative (F & A) rates are used to recover costs spent on sponsored projects that cannot be directly attributed to a particular project. These are often called indirect costs. Costing Policy & Analysis calculates, proposes, and negotiates F&A rates with the federal government (Department of Health and Human Services).
Current F&A Rates
The above rates are applied to Modified Total Direct Costs (MTDC), defined in the rate agreement as follows:
"Modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000."