Facilities and Administrative (F&A) Policy
The following policy regarding collection of F&A costs applies to all proposals for sponsored projects submitted on or after July 1, 2006. F&A costs must be included in the budgets of proposals for grants, contracts, cooperative agreements, and subrecipient agreements (sponsored project agreements) when allowable.
Facilities and Administrative Cost Policy
If a sponsor’s written policy or proposal guidelines place a limit on the percentage or amount of F&A costs that may be recovered on a sponsored project agreement, then USI will request F&A costs in accordance with the sponsor’s requirements.
If a sponsor does not specify a F&A rate, then F&A costs will be requested as follows:
• Federal Grants, Contracts, Cooperative Agreements, and Subrecipient Agreements (Sponsored Project Agreements):
F&A costs will be requested at the USI federally negotiated rate - currently 51% of directly charged salary and wages (not including benefits).
• Non-Federal Grants, Contracts, Cooperative Agreements, and Subrecipient Agreements (Sponsored Project Agreements):
In the absence of a published sponsor policy stating the amount or rate of F&A cost recovery, sponsored projects with local governmental units in the state of Indiana, nonprofit organizations, and industries shall be a rate appropriate to the project but no less than 10% of total direct costs, unless the funds are federal flow-through in which case the university’s approved federal F&A rate shall apply.
• When the USI Foundation is the applicant of record:
F&A costs will be requested at a rate appropriate to the project but no less than 10% of the total direct costs. For Federal grants, contracts, cooperative agreements, and subrecipient agreements (sponsored project agreements), USI’s federally negotiated rate will be used as a guide for applicable projects.
An exception to the F&A cost recovery policy may be warranted if it is clearly in the best interest of the University to accept the sponsored project with less than full F&A cost recovery and only when appropriately justified. The approving authority for an exception to the F&A cost recovery policy is the Executive Director of Sponsored Projects and Research Administration, who will consult with the dean of the principal investigator’s college. The approval to waive or reduce F&A costs requested must occur prior to the submission of a proposal.