Subject: 

Facilities and Administrative Cost Rates

No.        08-2

Date:    June 30, 2008

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

Facilites and administrative cost rates have been established for the period of July 1, 2008 through June 30, 2011. Please begin using these rates on proposals as appropriate based on the rate effective at the start of the proposal year.

 
7/1/08-6/30/11
or Until Amended
Organized Research  

On Campus

54.0%

Off Campus

26.0%
 
Instruction

On Campus

47.5%

Off Campus

26.0%
 
Other Sponsored Agreements (service)

On Campus

32.0%

Off Campus

26.0%

The agreement for rates effective July 1, 2008 through June 30, 2011 is dated June 4, 2008. A copy of the agreement is available at this link http://www.ovpra.indiana.edu/cg/FA080701.pdf.

The rates effective July 1, 2008 should be used for proposals extending past June 30, 2011 or until new rates are established. For proposals submitted that involve multiple budget years, budget the entire multi-year proposal using the rates above. 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 (regardless of the period covered by the 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.

Distribution of F&A Revenues:

For Organized Research on campus, the RCs will receive 51.5 of the 54 percentage points. Per existing practice, the Presidentís office will continue to receive 2.5 percentage points.

For Other Sponsored Agreements on campus, the RCs will receive 28.9 of the 32 percentage points. Per existing practice, the Presidentís office will continue to receive 3.1 percentage points.

For all other rates, the RCs will receive 100% of the F&A reimbursement.

Department of Defense Grants and Contracts:
The FY2008 Department of Defense (DoD) Appropriations Bill places a cap on indirect cost reimbursement at 35% of Total Costs for grants and contracts that meet certain criteria. The cap equates to 53.84% of direct costs (if all direct costs are part of the Base). Awards from DoD which meet the criteria might require that indirect costs be recalculated based on DoD requirements. Additional information regarding the cap may be found on the Council on Governmental Relations (COGR) website at http://206.151.87.67/docs/GuidanceDOD35Version2.doc.

Contact your Office of Research Administration representative to determine if your grant meets the criteria.

  ~~~~~ Office of Research Administration ~~~~~

     Office of Research Administration - BL

Phone: (812) 855-0516

Fax: (812) 855-9943

Email: resdev@indiana.edu

     Office of Research Administration - IN

Phone: (317) 278-3473

Fax: (317) 274-5932 

Email: srsinfo@iupui.edu