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Application of Facilities and Administrative Cost Rate

Effective Date: January 1, 2017

 

Executive Summary

In accepting a grant or contract from a governmental agency (“Sponsored Project”), the University is obliged to comply with a number of rules and regulations promulgated by that sponsor. Among those obligations is the requirement that the University apply the appropriate Facilities and Administrative (“F&A”) rate (commonly referred to at the University as the IC or ICR rate) to the direct cost base.

 

In accordance with federal requirements, different F&A rates have been established for on-site and off-site projects. Thus, identification of where a project will be performed is necessary to determine which rate to apply.

 

Space is designated as on-site and the on-site rate is applied if the majority of research activity is conducted in space owned or leased by the University and is used predominantly for research purposes. Thus, the on-site rate is applied to all basic/bench research, epidemiological studies and clinical research performed in space designated as research space and paid for by the University.  If rental and facilities costs are not charged directly to the project and the lease is a part of the space costs factored into the University’s F&A rate, then the project is considered on-site and the on-site rate applies.

 

Space is designated as off-site and the off-site rate is applied to projects where the majority of research activity is conducted at a location other than the University’s facility and the cost of the lease and related facility costs are directly charged to the project.  Additionally, if the space and/or space costs are donated by the sponsor or another entity, then the project is classified as off-site.  Documentation confirming the off-site status of the location where the project will occur must be included with the proposal budget submitted to Sponsored Projects Administration.

 

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