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Responsibility for Negotiation of Facilities and Administration and Fringe Benefit Rates

Effective Date: Formalized January 1, 2008

Latest Revision: July 9, 2012

Executive Summary

Sponsored Project awards to the University include funds to cover both those expenditures specifically assignable as direct costs, such as the salaries of faculty and staff, supplies, travel and similar costs, as well as the fringe benefit costs associated with the salaries directly charged to sponsored projects and the indirect costs (known as Facilities and Administration, or F&A costs) associated with carrying out those projects. Neither the fringe benefit nor the F&A costs can be easily assigned specifically to sponsored projects, and accordingly, the method by which they are charged to grants is through the use of a "rate" which is negotiated with the Federal government.

It should be noted that while this Policy is now being formally published in the Administrative Policy Library, the underlying provisions of the policy are not new, and have been effect for many years.

To see the full text of this policy, please see the link on the right.