04-3 Obsolete ----- replaced with 08-2 effective July 1, 2008

Facilities and Administrative Cost Rates
July 6, 2004

(Note:  This Important Notice is being sent to Fiscal Officers, Chairpersons, Deans and Chancellors.  Please forward to others who have a need to know.)

Facilities and Administrative Cost Rates have been established for the period July 1, 2004 through June 30, 2008.  Please begin using these rates on proposals as appropriate based on the rate effective at the start of the proposal year. 

The agreement for rates effective July 1, 2004 through June 30, 2008 is dated May 14, 2004.

The rates effective July 1, 2008 should be used for proposals extending past that date or until new rates are established.

For proposals submitted that involve two or more fiscal years, budget the rate for the full year that is applicable on the first day of the proposal budget period.  For example, if a five year research proposal is being submitted with project dates from May 1, 2005 to April 30, 2010, use the 51.5% research rate, which is applicable on the first day of each budget year, for the first four years.  Use the 51.0% Rate for the fifth year.  Rates are not split within a budget year. 

Base is modified total direct costs (MTDC), consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract.  Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant or subcontract in excess of $25,000.