Transcript Research Departments

Overview of Rate Calculation
TWO COST GROUPS:
 DIRECT COSTS
 INDIRECT COSTS
 FACILITIES
 ADMINISTRATION
Direct Costs
Costs that can be identified specifically
with a particular sponsored project, an
instructional activity, or any other
institutional activity; or that can be
directly assigned to such activities
relatively easily with a high degree of
accuracy.
Direct Costs
RESTRICTED
GRANTS &
CONTRACTS
GOVERNMENT
GRANTS &
CONTRACTS
INSTRUCTION
NON-GOVERNMENT
GRANTS &
CONTRACTS
OTHER INSTITUTIONAL
ACTIVITIES
ORGANIZED ACTIVITIES
DORMS, DINING,
UNALLOWABLE COSTS, ETC.
Indirect Costs
Costs that are incurred for common or joint
objectives and therefore cannot be identified
readily and specifically with a particular
sponsored project, an instructional activity, or
any other institutional activity.
Indirect Costs Are Real Costs
Indirect Costs
FACILITIES
BUILDING &
EQUIPMENT
DEPRECIATION
INTEREST
EXPENSE
OPERATIONS
&
MAINTENANCE
Indirect Costs
ADMINISTRATION
GENERAL
DEPARTMENTAL SPONSORED
&
ADMINISTRATION PROGRAMS
ADMINISTRATION
ADMINISTRATION
LIBRARY
Examples of Facilities Costs
 ANNUAL DEPRECIATION EXPENSE OF
BUILDINGS, CAPITAL IMPROVEMENTS TO
LAND & BUILDINGS, AND EQUIPMENT
 INTEREST EXPENSE ON DEBT ASSOCIATIED
WITH BUILDINGS, EQUIPMENT & CAPITAL
IMPROVEMENTS
 UTILITIES, SECURITY, JANITORS, PROPERTY
INSURANCE, SAFETY, HAZARDOUS WASTE,
MAINTENANCE OF FACILITIES AND PLANT
ADMINISTRATION
Examples of Administrative Costs
 ADMINISTATIVE OFFICES OF ENTIRE UNIVERSITY
SUCH AS PRESIDENT, PROVOST, FINANCE (ACCTS
PAYABLE, BUDGET, ETC), PERSONNEL (PAYROLL,
ETC), COMPUTING, GENERAL COUNSEL, ETC.
 ADMINISTRATIVE & SUPPORT SERVICES THAT
BENEFIT ACADEMIC DEANS AND DEPARTMENTS
SUCH AS CHEMISTRY, BIOLOGY, CHILD STUDY,
ETC.
 OFFICES OF GRANT AND CONTRACT
ADMINISTRATION INCLUDING SPONS ACCTNG &
ASSOC PROVOST FOR RESEARCH
 EXPENSES FOR THE OPERATIONS OF LIBRARIES
Administrative Costs
 ADMINISTRATIVE COSTS ARE CAPPED AT 26
POINTS ON THE F&A RATE
 CURRENTLY TUFTS IS 6 POINTS ABOVE THE CAP
 ALL ADMINISTRATIVE INDIRECT COSTS ABOVE
THE CAP ARE NOT RECOVERED BY THE
UNIVERSITY
PROCESS FOR ALLOCATING INDIRECT COSTS TO
DIRECT COSTS FOR FINAL RATE CALCULATIONS
Building
Depreciation
Interest
Operations
& Maintenance
Space
Sq Ft
Space
Sq Ft
Space
Sq Ft
NUMERATOR
Allocation Method
Equipment
Depreciation
Library
Admin
Space
Sq Ft
FTE &
SW
MTDC
Organized
Research
DENOMINATOR
Instr & Dept Other Sponsored
Research
Activity
Other Inst.
Activity
Example of Rate Calculation
F&A COSTS ALLOCABLE TO
RESEARCH $65,000,000
ORGANIZED RESEARCH BASE
$100,000,000
65%
Different Rates and Their Uses
ORGANIZED RESEARCH – 65.0%
All research and development activities of the University that are separately budgeted and
accounted for on a specific project basis, and research cost sharing. Organized research
activities include:
 Sponsored Research Projects: Research projects sponsored by Federal agencies and nonFederal organizations (e.g. states, cities, foundations, corporations, etc.) through grants,
contracts, and cooperative agreements.
 Sponsored Research Training: Training of individuals in research techniques sponsored
by Federal agencies and non-Federal organizations through grants, contracts and
cooperative agreements. Common examples include Career Development (“K”) awards,
institutional training grants (T-32), individual fellowships (F-32), etc.
Organized research projects typically require a proposal or other application to obtain
funding, have a defined scope of work associated with the project, anticipate a “deliverable”
result, and require that periodic financial and progress reports be submitted to the sponsor.
Different Rates and Their Uses
OTHER SPONSORED ACTIVITIES – 37%:
Programs and projects financed by Federal and nonFederal agencies and organizations that involve the
performance of work other than instruction and
organized research. Examples are health service
projects, public service projects, clinical trials
performed in clinical space, and public service
OFF CAMPUS – 26%
All sponsored research activities that take place off
campus in non Tufts owned facilities
Breakdown of Rate Calculation
 BUILDING DEPR
 LIBRARY
9.1%
1.4%
7.2%
18.9%
26.0%
2.4%
 TOTAL ORGAN RES RATE
65.0%
 EQUIPMENT DEPR
 INTEREST EXP
 OPERATIONS & MAINT
 ADMIN COSTS - CAPPED
Breakdown of Rate Calculation
 BUILDING DEPR
 LIBRARY
4.9%
1.5%
3.0%
17.2%
26.0%
2.4%
 TOTAL ORGAN RES RATE
55.0%
 EQUIPMENT DEPR
 INTEREST EXP
 OPERATIONS & MAINT
 ADMIN COSTS - CAPPED