Guidance on Facilities & Administrative (F&A) rates
It is the goal of Duke University to recover full costs of each sponsored project where permitted by the sponsor's policies.
Full costs are those that are generally treated as direct (costs that can be readily and specifically identified with a particular sponsored project relatively easily with a high degree of accuracy) and facilities and administrative costs (sometimes called F&A, indirect, or IDC), which are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project).
The Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200 (otherwise referred to as the Uniform Guidance), includes principles for determining costs applicable to grants, contracts, and other agreements between the Federal government and Duke University and also defines criteria for determining both direct and F&A costs.
Duke’s General Accounting Procedure (GAP) 200.330, Facilities and Administrative Costs on Sponsored Projects provides a consistent method for evaluating, applying, and calculating the F&A charges associated with a sponsored project.
Calculating F&A Costs
When calculating F&A costs in a budget, it is important to consider both the F&A rate as well as the F&A base.
The Modified Total Direct Cost (MTDC) base is used for Federal sponsors when the University's federally-negotiated F&A rate is applied. The F&A rate is applied to a modified amount of the total direct costs of the project budget, which excludes:
- Equipment costs of $5,000 or greater
- Capital expenditures
- Rental costs of off-site facilities
- Patient Care Costs
- Tuition Remission
- Scholarships and fellowships
- The portion of each subaward / subcontract in excess of $25,000 for the performance period of the project
The Total Direct Cost (TDC) base is used for most non-Federal sponsors. The F&A rate is applied to the total direct costs of the project budget, without exclusions.
See Duke University's current Rate Agreement for approved F&A rates.
Federal Sponsors and F&A Costs
Duke University negotiates its F&A rate with the Department of Health and Human Services (acting on behalf of the federal government) which results in an F&A Rate Agreement. The agreement specifies the rates at which the University can recover its F&A costs associated with projects sponsored by all agencies of the Federal government, and sets forth F&A rates for three types of sponsored activities:
Organized Research
Organized Research applies to research and development activities that are separately budgeted and accounted for and have definite objectives; includes sponsored and internal research. Federally-funded clinical trials are considered organized research.
| F&A Rate | Base | Applicable to | Description |
|---|---|---|---|
61% On Campus | MTDC | Organized Research | These projects are in the restricted xx3xxxx WBSE series |
28.5% Off Campus1 | MTDC | Organized Research | These projects are in the restricted xx3xxxx WBSE series |
26% Off Campus | MTDC | Organized Research | These projects are in the restricted xx3xxxx WBSE series |
| 65.5% On Campus | MTDC | DOD Contracts for Organized Research | These projects are in the restricted xx3xxxx WBSE series |
| 33% Off Campus2 | MTDC | DOD Contracts for Organized Research | These projects are in the restricted xx3xxxx WBSE series |
| 30.5% Off Campus | MTDC | DOD Contracts for Organized Research | These projects are in the restricted xx3xxxx WBSE series |
Grants or contracts will not be subject to more than one F&A cost rate. If more then 50% of a project is performed off-campus (in space not owned or leased by Duke University, or in space where the rent is directly charged to the sponsored project), the off-campus rate will apply to the entire project.
Instruction
Instruction applies to those activities offered through regular academic departments or other units, such as summer school, whether they are offered for credit towards a degree or on a non-credit basis. This also includes instruction, course and curriculum development, academic advising, and scholarly activities such as preparing papers, delivering papers, attending seminars and professional society meetings.
| F&A Rate | Base | Applicable to | Description |
|---|---|---|---|
61% On Campus | MTDC | Instruction | These projects are in the restricted xx1xxxx and xx2xxxx WBSE series |
Other Sponsored Activities
Other Sponsored Activities applies to those activities not considered Organized Research or Instruction. Some examples include:
- Awards supporting travel, conferences, symposia, workshops, and seminars that do not otherwise meet the criteria for organized research or instruction;
- Public Service, inclusive of health service, legal clinics, sustainability, and curriculum development;
- Public events – sponsorship of museums, arts, dance, film, and music programs;
- Duke University Press publications.
| F&A Rate | Base | Applicable to | Description |
|---|---|---|---|
33% On Campus | MTDC | Other Sponsored Activities | These projects are in the restricted xx9xxxx WBSE series |
Non-Federal Sponsors and F&A Costs
In some instances, these lower F&A cost rates are linked to a sponsor’s operating philosophy of partnering with the University in developing new knowledge. However, often it is simply an administrative decision on the part of the sponsor not to honor the University's established F&A rate agreement.
F&A Rates and Descriptions
For sponsored projects that 1) are funded by a non-Federal sponsor (with non-federal funds) and 2) does not include F&A cost recovery at the prevailing Federal or industry rates, it is permissible to recover F&A costs by direct charging costs attributable to that project that are normally treated as F&A costs. Examples include clerical and administrative salaries; space/facilities; routine postage; cell phone; memberships; subscriptions; and local area network expenses.
In all cases, the services or items being charged:
- Must be allowable per institutional policy to the project;
- Must have a demonstrated benefit to that specific project
- Must be allocated proportionate to the level of their use on that project.
| F&A Rate | Base | Applicable to | Description |
|---|---|---|---|
| 33% | TDC | Industry sponsored – CLINICAL TRIALS | Definition of clinical trial for F&A determination purpose: The controlled, clinical testing in human subjects (including prospective data collection) of a drug, device, treatment, diagnostic, intervention, or preventive measure to assess its safety, efficacy, benefits, costs, adverse reactions, and/or outcomes |
| Applicable Federal F&A rate (see Federal Sponsors and F&A Costs) | MTDC | Industry sponsored - EDUCATION | Definition of education for F&A determination purpose: Conferences, fellowships, training directed to Duke faculty, staff, and trainees; and training provided to non‐Duke trainees |
| Applicable Federal F&A rate (see Federal Sponsors and F&A Costs) | MTDC | Industry sponsored - RESEARCH | All sponsored activity (other than clinical trials and education) funded by an Industry source |
| Applicable Foundation / Non-Profit F&A rate | TDC | All projects sponsored by Foundation / Non-Profit sources | |
| 40% | MTDC | All projects sponsored by Patient-Centered Outcome Research Institute (PCORI) |
F&A Waiver Requests
- For Campus Schools or Provost Area (PAMC): PI should reach out to their Department Chair for approval, then the request is sent via email.
- For School of Medicine
- For School of Nursing: contact David Bowersox