[Office-of-research] Implementation of New Facilities and Administrative (F&A) Rates

Fri Mar 13 16:57:30 PDT 2009

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
(http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5).  The following (and
attached) description of how the new rates will be implemented has also been
added to the Office of Research web site
(http://or.ucr.edu/policies/policies.aspx?k=12).  

Please share this information broadly within your unit with Principal
Investigators and those involved in the administration and management of
sponsored programs.

Bruce Morgan

Assistant Vice Chancellor for Research

Implementation of New Facilities and Administrative (F&A) Rates

Effective March 16, 2009

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:

7/1/08 - 6/30/09

7/1/09 - 6/30/13

On-campus Organized Research

50.5% MTDC

52.0% MTDC

Off-campus Organized Research

26.0% MTDC

26.0% MTDC

On-campus Instruction

56.5% MTDC

58.5% MTDC

Off-campus Instruction

26.0% MTDC

26.0% MTDC

On-campus Other Sponsored Activities

42.5% MTDC

44.0% MTDC

Off-campus Other Sponsored Activities

18.0% MTDC

18.0% MTDC

New & Renewal Proposals Submitted On or After March 16, 2009

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. 

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.

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.

Supplemental & Continuation Proposals Submitted On or After March 16, 2009

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.

Please see below for additional information regarding how the applicable F&A
rate associated with parent awards are determined.

Awards with Project Period Start Dates Prior to 7/1/08

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.

Awards with Project Period Start Dates of 7/1/08 and Beyond Resulting from
Proposals Submitted Before 3/16/09

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.

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.

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. 

Treatment of Funds Carried Forward to a New Budget Year

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.

Please direct questions regarding the new F&A rates and determining
applicable F&A rates to the Contract and Grant Officer
<http://or.ucr.edu/home/Staff.aspx?t=3>  assigned to your unit.

c:         Deans and Vice Chancellors

            Assistant Vice Chancellor for Research

            Assistant Vice Chancellor for Fiscal Services

            Assistant Vice Chancellor for Academic Planning and Budget

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