Policies & Procedures

About Research Administration at GSU

Policies and Procedures for Research and Sponsored Programs

Policies and Procedures for Research and Sponsored Programs

Facilities and Administrative Costs

Background

A University’s federally-negotiated Facilities and Administrative (F&A or Indirect) cost rate is applicable to all sponsored programs funded by federal, state, or private sponsors. The application of this rate allows the University to recover certain costs associated with externally-funded activities that, although they are true costs, cannot be readily attributed to an individual project or monitored on an individual basis.  These costs include building and equipment use, operations, maintenance, utilities, general departmental administration, general office supplies, telecommunications, library resources, and capital improvements.  Each sponsored program is expected to pay its proportional share of these research infrastructure costs.  The F&A cost rate is negotiated between Georgia Southern University and the U.S. Department of Health and Human Services (DHHS).

Current F&A Rate

Effective July 1, 2009, the University adopted the use of a Total Direct Cost (TDC) base excluding (1) capital expenditures and (2) subaward amounts in excess of $25,000 for calculation of F&A costs for all new proposals in preparation.

For on-campus organized research, instruction and public service activities, the new F&A cost rate is as follows:

• On-campus: 31%
• Off-campus: 12%

The University's negotiated F&A cost base INCLUDES the following budget categories:

• Salaries and wages, including fringe benefits
• Services
• Materials and supplies
• Travel
• Rental costs of off-site facilities
• Scholarships and fellowships
• Tuition remission
• Subawards, service agreements and consulting agreements up to $25,000 each

The University's negotiated F&A cost base EXCLUDES the following budget categories:

• Capital expenditures, including equipment having a unit cost of $5,000 or greater
• The portion of any single subaward, service agreement or consulting agreement which exceeds $25,000

Click here to view a copy of the University's F&A Cost Rate Agreement

Description of F&A Costs for Proposals in Preparation

To accuratelt describe the F&A base used in all proposals in preparation, investigators are encouraged to utilize the following description:

"Facilities and Administrative (F&A or indirect) costs are calculated in accordance with Georgia Southern University’s federally-negotiated F&A rate agreement (Department of Health and Human Services, effective 7/1/2009), which is currently 31% of total direct costs excluding only capital expenditures and the amount of subawards in excess of $25,000.  Georgia Southern University’s threshold for capital expenditures and capital equipment is $5,000."

Click here to view a sample budget using the University's F&A cost base.

Application of F&A Costs

All project budgets should include F&A costs as determined by the University's federally negotiated rate.  Exceptions to this policy may be considered on a case-by-case basis if the sponsor has an established, written policy applicable to any and all potential applicants that deviate from the federally negotiated rates.  All deviations are subject to approval by the Associate Vice President for Research prior to submission of the grant or execution of the contract.

Investigators are encouraged to seek full recovery of F&A costs regardless of the sponsor (federal, state and nonprofit). In instances where a state agency/organization will not provide for the full F&A cost rate, proposals will be submitted with a direct charge equaling 10% of the direct cost budget. This 10% should be labeled in the proposal budget as "Project Management." If the proposed project is funded, these funds will be treated consistently with recovered F&A funds and be distributed amongst the academic and administrative units of the University.

Use of On- and Off-campus Rates

The use of the on- or off-campus F&A rate is determined as follows:

If 51% or more of proposed salaries for University personnel represents compensation for on-campus effort, the on-campus rate will apply.

If 51% or more of proposed salaries for University personnel represents compensation for off-campus effort, the off-campus rate will apply.

The inclusion of a subcontract or consulting agreement in a budget has no bearing on the applicable rate.  The applicable on- or off-campus rate is related solely to the compensation to be paid to University employees.

Variations and Exemptions

Despite the acceptance of a federally-negotiated F&A rate between the University and its cognizant agency, the F&A rate applied to a sponsored program may deviate based upon the sponsor’s written policies or the institution’s acceptance of an alternate rate as mandated by a sponsor.  For example, some federal sponsors may place a cap on the rate that may be charged to all of its awards or certain types of awards.  The University attempts to obtain full recovery of F&A costs on all sponsored programs, except where specific written policies of the sponsor preclude doing so.  When a sponsor's formal written and documented policy stipulates a lower F&A rate, the University will abide by the restriction.  However, requests for reduction or waiver of the federal F&A rate or a non-federal sponsor's stated rate must be approved by the Associate Vice President for Research.