Transcript Cost Share

Lunch & Learn
Facilities & Administrative
(F&A) Costs
Presented by: Roberta McManus
Agenda

F&A Costs

F&A Proposal Process

F&A Cost Recovery and Distribution

Cost Accounting Standards (CAS) Exemption
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OMB Circular A-21
…compliance guide
What are F&A Costs?
“those that are incurred for common or joint
objectives [of the University] and,
therefore, cannot be identified readily and
specifically with a particular sponsored
project, an instructional activity or another
institutional activity”
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OMB Circular A-21
F&A Rate Components
F&A Rate Component
Examples
General Administrative Costs
Central administrative offices
(Payroll, accounting, purchasing)
Department Administration
Academic Departments/Colleges
Sponsored Administration
SRAS, SRS, OVPR, LAR
Operation & Maintenance
Repair & maintenance, utilities,
grounds, police
Building and Equipment Depreciation
Standardized asset classifications and lives
Interest Costs on Building & Equipment
Third Party Interest Costs
Libraries
Central/Campus and College Libraries
* NOTE: Admin “capped” @ 26%
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F&A Rate Formula & Concept
Allocated Organized Research F&A
Costs
=
Organized Research Direct Costs
(“BASE”)
Research Rate
Proposed to Federal
Auditors
Concept: As “base” increases rate
will decrease (if no increase in
F&A costs)
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Why Should We Care?




FSU incurs “real” costs to support performance
of work on sponsored agreements
F&A Rates applied to grants generated $27M
(FY2010) in reimbursements
Cost recovery mechanism – not a “tax” on
grants
Costs that sponsors will reimburse based on a
calculated rate developed and negotiated, per
A-21
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F&A Proposal Process
…it takes a village!
FSU F&A Proposal

Proposal team
– Consultants
 Goal to educate/train SRAS staff
– FSU staff








Helen McCann – Business Analyst
Qiong (June) Wu – Cost Analyst
Judd Enfinger – Controller’s Office
Iris Chung – Controller’s Office
Katie Martindale – Budget Office
Lori Pinkerton – Facilities
Dan Dayhoff - Facilities
Specialized software is used to prepare the proposal
– Comprehensive Rate Information System (CRIS)
 Data analysis
 Generates proposal
– WebSpace
 Space Survey
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F&A Proposal Process
Base year FY 2010
 Start with audited financial statements
 Identify/treatment of unallowable &
excludable costs
 Determine direct costs – “BASE”
 Determine F&A costs & related pools
 Conduct Space Survey – very important!
 Distribute F&A costs to “Major Functions”

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F&A Proposal Process
Calculate Rates
 Submit Proposal

– Due 12/31/2010
– Extension to 6/30/2011

Negotiate with Cognizant Agency
– Department of Health and Human Services
(DHHS)
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Space Survey

Purpose
– Document building room usage
– Allocate facilities costs
– Provide productivity analysis

Space survey tool WebSpace
– On-line
– Integrates with F&A proposal analysis software
– Enables management of survey process and
results
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F&A Allocation
Building
Depreciation
Facility Pools
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
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F&A Recovery and Distribution
…giving back!
F&A Rate Application


As previously discussed, a Rate Agreement must be
approved by cognizant agency (DHHS) prior to
applying rates
Multiple Rates are allowed:
– On Campus – comprised of both facility and administrative
costs
– Off Campus – comprised of administrative costs only (26%)
– Separate functions – rates for instruction, organized
research, and other sponsored activity
– Other – separate rate for NHMFL at FSU

The actual charge to the sponsored project is
calculated by multiplying the F&A rate and the
distribution base
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FSU Provisional F&A Rates
Effective: July 1, 2006
Activity
Non NHMFL
Research (RES)
Research
Instruction (INS)
Instruction
Other Sp Activity (OSA)
Other Sp Activity
NHMFL - NON NIH
RES/INS/OSA
RES/INS/OSA
NHMFL - NIH
RES/INS/OSA
Location
Federal Neg
Rate
Applied Rate
ON
OFF
ON
OFF
ON
OFF
47.00
26.00
54.50
26.00
32.50
22.00
47.00
26.00
47.00
26.00
32.50
22.00
ON
OFF
67.00
24.50
55.00
24.50
ON
67.00
67.00
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FSU F&A Recovery
F&A
30,000,000
$27.2
$24.9
25,000,000
$22.0
$25.0
$22.2
20,000,000
15,000,000
F&A
10,000,000
5,000,000
-
FY2006
FY2007
FY2008
FY2009
FY2010
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F&A Bases

Federal base
– Modified total Direct Costs (MTDC)
 Excludes:
–
–
–
–

Equipment
Rent
Tuition
Scholarships/Fellowships
Non Federal base
– Total Direct
 Excludes
– Tuition
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Example Calculation
Salaries
Benefits
Materials and Supplies
Tuition
Equipment
Total Direct Costs
F&A Base
F&A Rate
F&A Amount
Total Project Cost
TDC
$10,000
2,000
2,000
1,000
5,000
$20,000
$19,000
5%
950
$20,950
MTDC
$10,000
2,000
2,000
1,000
5,000
$20,000
$14,000
47%
6,580
$26,580
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F&A Costs Recovered

Accounting for F&A in OMNI
– F&A process run nightly
– Posts F&A to projects
PI can obtain F&A waiver to reduce F&A rate from OVPR
Accumulates “revenue” into the Sponsored Research Trust
Fund (SRTF)
 Policy to administer SRTF


– http://www.research.fsu.edu/contractsgrants/srad.html

Distribution priority
– Operating costs for research administration
– SRAD fund distribution
 Quarterly (NHMFL and Rent differentials)
 Annual
–
–
–
–
1/3
1/6
1/8
3/8
to
to
to
to
OVPR
CRC
Deans
Departments
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SRAD Funds
Must support other research or sponsored training
programs
 Appropriate uses (examples)
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
–
–
–
–
Graduate research assistant salaries
Equipment for research lab
Travel costs to conference to present paper
Animal use care per diem
–
–
–
–
Graduate teaching assistant salaries
Classroom supplies
Tuition costs for faculty’s advanced study degree
Food for holiday party
Inappropriate uses (examples)
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OMB Circular A-21
Cost Accounting Standards
…charging F&A as direct costs?
A-21 Cost Accounting Standard
(CAS)
CAS 502- Consistency in allocating costs incurred
for same purpose
All costs incurred for same purpose, in like
circumstances, are either direct costs only or indirect
costs only.
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CAS Exemption

In exceptional circumstances it may be appropriate to
charge F&A costs directly to a sponsored project
– If the nature of a sponsored project requires an extensive
amount of administrative and/or clerical support or
goods/services significantly greater than the routine level
provided by an academic department, then the effort is deemed
an exceptional circumstance and such costs can be accounted for
as direct

CAS exemption must be approved in advance of
charges normally classified as F&A being charged
directly to a project
– Complete CAS form
– http://www.research.fsu.edu/contractsgrants/forms.html
– Submit to Director, Sponsored Research Services
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Coming Soon….

Lunch & Learn series
– Proposals to Receive a Subcontract – May 4
– Cost Sharing – May 18

Year end activities – calendar on
Controller’s website soon!
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