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<p class=MsoNormal><span style='font-size:12.0pt'>The Office of Research has
updated its website to reflect changes in UCR’s F&A rates in response
to the campus’ new rate agreement with the Department of Health and Human
Services (<a href="http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5">http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5</a>).
The following (and attached) description of how the new rates will be
implemented has also been added to the Office of Research web site (<a
href="http://or.ucr.edu/policies/policies.aspx?k=12">http://or.ucr.edu/policies/policies.aspx?k=12</a>).
<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Please share this information
broadly within your unit with Principal Investigators and those involved in the
administration and management of sponsored programs.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Bruce Morgan<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Assistant Vice Chancellor for
Research<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal align=center style='text-align:center'><b><span
style='font-size:12.0pt'>Implementation of New Facilities and Administrative
(F&A) Rates<o:p></o:p></span></b></p>
<p class=MsoNormal align=center style='text-align:center'><b><span
style='font-size:12.0pt'>Effective March 16, 2009<o:p></o:p></span></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>UCR recently received its new
Facilities and Administrative Rate Agreement with the Department of Health and
Human Services, UCR’s cognizant audit agency. The new F&A rates
and applicable effective periods are as follows:<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
style='border-collapse:collapse'>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><b><span style='font-size:12.0pt'>7/1/08 – 6/30/09<o:p></o:p></span></b></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><b><span style='font-size:12.0pt'>7/1/09 – 6/30/13<o:p></o:p></span></b></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>On-campus Organized
Research<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>50.5% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>52.0% MTDC<o:p></o:p></span></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>Off-campus Organized
Research<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>26.0% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>26.0% MTDC<o:p></o:p></span></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>On-campus Instruction<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>56.5% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>58.5% MTDC<o:p></o:p></span></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>Off-campus Instruction<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>26.0% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>26.0% MTDC<o:p></o:p></span></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>On-campus Other Sponsored
Activities<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>42.5% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>44.0% MTDC<o:p></o:p></span></p>
</td>
</tr>
<tr style='height:.3in;mso-height-rule:exactly'>
<td width=362 style='width:216.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>Off-campus Other Sponsored
Activities<o:p></o:p></span></p>
</td>
<td width=225 style='width:135.0pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>18.0% MTDC<o:p></o:p></span></p>
</td>
<td width=212 style='width:126.9pt;padding:0in 5.4pt 0in 5.4pt;height:.3in;
mso-height-rule:exactly'>
<p class=MsoNormal><span style='font-size:12.0pt'>18.0% MTDC<o:p></o:p></span></p>
</td>
</tr>
</table>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'><o:p><span
style='text-decoration:none'> </span></o:p></span></u></b></p>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'>New & Renewal
Proposals Submitted On or After March 16, 2009<o:p></o:p></span></u></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'>All new and renewal proposals
must be submitted using these new rates. The eCAF (Electronic Campus
Approval Form) system has been updated to reflect the above rates. If the
Office of Research receives an eCAF or a budget for a new or renewal proposal
that does not use the new rates, it will be returned to the submitting unit for
correction. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>For proposals with a budget
year starting before July 1, 2009 and ending on or after that date, the budget
should be calculated using the applicable rate for each budget year segment.
For example, for a budget year beginning April 1, 2009, the budget should be
calculated using an F&A rate of 50.5% MTDC for April 1 – June 30 and
52.0% MTDC for July 1 – March 31.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>In the event that a proposal
using an old F&A rate is submitted to a sponsor after March 16 2009, the
difference between the F&A costs contained in the proposal and the F&A
costs calculated using the new applicable rate will be rebudgeted from direct
costs at that time the award is set up.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'>Supplemental &
Continuation Proposals Submitted On or After March 16, 2009<o:p></o:p></span></u></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'>For the purpose of
calculating F&A costs, all supplemental and continuation proposals should
use the applicable F&A rate associated with the parent award in effect at
the time the supplemental or continuation proposal is submitted. However,
if a sponsor’s policies or funding opportunity announcement state that a
specific F&A cost rate is applicable to a supplemental proposal, then that
special rate should be used. For example, supplemental awards from the National
Science Foundation for its Research Experience for Undergraduate program limit
the applicable F&A cost rate to 25% MTDC.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Please see below for
additional information regarding how the applicable F&A rate associated
with parent awards are determined.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'>Awards with Project
Period Start Dates Prior to 7/1/08<o:p></o:p></span></u></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'>To comply with 2 CFR 220 (OMB
Circular A-21: Cost Principles for Educational Institutions) all awards
with project period (i.e., competitive segment) start dates prior to July 1,
2008 will continue to use the applicable rate from the F&A rate agreement
in effect at the time of the project period start date. For example, if a
sponsored award for an on-campus research project has a project period of
October 1, 2007 – September 30, 2012, it will continue to use the 50%
MTDC rate until September 30, 2012. No cost extensions approved by the
Office of Research or the sponsor result in the extension of the project period
end date and do not change applicable F&A rate.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'>Awards with Project
Period Start Dates of 7/1/08 and Beyond Resulting from Proposals Submitted
Before 3/16/09<o:p></o:p></span></u></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'>In accordance with
UCR’s F&A Rate agreement dated August 16, 2006, UCR was required to
use the same rates as those cited for the fiscal year ending June 30, 2008
(“Provisional Rates”) until approval of a new rate agreement.
Also, in accordance with 2 CFR 220, when an education institutions does not
have an approved F&A rate agreement at the time of award, the Provisional
Rate is used for awarding F&A costs. The Provisional Rate is then subsequently
adjusted once a new rate agreement is approved.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Awards with project period
start dates of July 1, 2008 and beyond that resulted from new and renewal
proposals submitted before March 16, 2009 may be awarded additional funds by
sponsors in response to UCR’s new F&A rate agreement. In such
cases, the F&A rate associated with such awards will be revised to reflect
the new applicable rate. In those cases where sponsors do not award
additional funds, UCR will treat such awards as if they had project period
start dates prior to July 1, 2008.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>In the event that a sponsor
intends to make an award in response to a proposal submitted before March 16,
2009 and the sponsor requests or requires submission of a revised proposal
budget prior to making the award, the revised budget must use the new
applicable rate. Please remember that all revised budgets require the
review and approval of the Office of Research prior to submission to a sponsor.
<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><b><u><span style='font-size:12.0pt'>Treatment of Funds
Carried Forward to a New Budget Year<o:p></o:p></span></u></b></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Since indirect costs are
levied on expenditures, any balances carried forward into a new budget period
will be charged at the effective rate for that budget year. If these
carry-forward balances necessitate rebudgeting funds between direct and
indirect costs, Extramural Accounting will notify the PI if the rebudgeting is
greater than $500. If a budget is affected by less than $500, Extramural
Accounting will rebudget, but will not formally notify the PI. All rebudgeting
activities will be processed via the BEA application and require review via the
PAN process.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Please direct questions
regarding the new F&A rates and determining applicable F&A rates to the
<a href="http://or.ucr.edu/home/Staff.aspx?t=3">Contract and Grant Officer
assigned to your unit</a>.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>c: Deans
and Vice Chancellors<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'> Assistant
Vice Chancellor for Research<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'> Assistant
Vice Chancellor for Fiscal Services<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'> Assistant
Vice Chancellor for Academic Planning and Budget<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><o:p> </o:p></p>
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