|
|
|
Statement of Principles:
Facilities and Administrative Costs
Purpose: The purpose of this statement is to:
- define Facilities and Administrative (F&A) costs
- maximize recovery of F&A costs for the Medical College of Georgia and MCG
Research Institute
- comply with federal guidelines for consistent treatment of sponsored
activities
- assure all requests for waivers are treated equitably
Definition: Facilities and Administrative costs (F&A; also referred to
as indirect costs or overhead) are those costs associated with the conduct of
sponsored activities that are incurred for common or joint objectives and
therefore are not readily identifiable with a specific project. Examples of
costs normally considered to be F&A costs include administrative/clerical
salaries and benefits; facilities management and utilities; general-purpose
equipment; office supplies; postage; memberships and dues;
subscriptions/books/periodicals; local telephone charges; institutional services
such as purchasing, accounting, etc.
F&A Rates at the Medical College of Georgia/Medical College of Georgia
Research Institute:
- Federally negotiated rates:
Federal Research Rate on-Campus (Predetermined)
- FY05 43%
- FY06 45.5%
- FY07 46.5%
- FY08 47%
- FY09 47%
Federal Instruction Rate On-Campus:
Federal Other Sponsored Activities On-Campus:
Federal Off-Campus Rate All Activities:
These rates are applied to modified total
direct costs (MTDC). MTDC is calculated by subtracting from total direct costs
the charges for equipment ($5,000 threshold), patient care costs, tuition, rent, and each
subcontract in excess of the first $25,000.) The Manager of Cost Reimbursement
and Analysis within the MCG Office of Grants and Contracts is responsible for
development and negotiation of the F&A Cost Rate Agreement that is applicable
to federal awards for both MCG and MCGRI.
- Industry sponsored clinical trials
This rate is
applied to industry sponsored clinical studies (e.g., those studies requiring
Institutional Review Board (IRB) review). Note that it is applicable to all
study costs, including advertising, subject compensation, and screen failures.
It is not applicable to IRB fees; these fees are required of
industry-sponsored clinical trials with proposed budgets above $10,000 whether
or not the study initiates.
Principles
- F&A costs are real costs of institutional support for sponsored program
activity.
- Sponsored program budgets are expected to recover F&A costs at the maximum
allowable rate.
- Budgets for industry sponsored non-clinical projects (i.e., no human
subjects are involved) are to include F&A costs at the institution’s federally
negotiated F&A rate.
- Some sponsors and some programs provide F&A rates that are below the
federally negotiated rate. Investigators/departments will not be penalized for
under-recovery if the sponsor’s published policies include documentation that
their F&A rate is lower than our federally-negotiated rate or that they do not
provide funds for F&A costs. This is not considered to be a full/partial
waiver of F&A costs.
- Full or partial waiver of F&A costs may be considered with strong
justification. Waivers will only be considered in exceptional circumstances,
such as instances in which the sponsor’s budget limit will not support the
direct costs of the project if full F&A costs are applied.
- Requests for waivers of F&A costs are to be submitted through the
appropriate chair and dean to MCG’s Associate Vice President for Research and
Sponsored Program Administration for approval/review with the Vice President
for Research as appropriate.
Questions regarding these principles should be directed to the appropriate pre-award staff member
in the Office of Grants and Contracts.
|