Indirect Costs

FACILITIES AND ADMINISTRATIVE COST RATE

The 1999-2003 fiscal years' Facilities and Administrative (F&A) cost rates are shown below. The  Agreement date is April 3, 2001. These rates are predetermined for the period 9/1/99 - 8/31/03 and are provisional thereafter. The rates remain unchanged.  The definition of capital equipment changed as of 9/01/2001. Beginning 9/1/2001 capital equipment was defined as items which are $5,000 or more. For projects awarded prior to 9/1/2001, the $1,000 definition will remain in effect.

*MODIFIED TOTAL DIRECT COST (MTDC) BASE = Total direct costs (including only the first $25,000 of each subgrant or subcontract) less: capital equipment (items $1,000 or more prior to 9/1/2001 and  $5,000 or more 9/1/2001 and after),  stipends and tuition payments, scholarships, fellowships, capital expenditures (including alterations and renovations and the materials component of equipment fabrication) and rental costs (space only).

The F&A category in sponsored projects budgets should now read as follows:

FRINGE BENEFITS (Revised)

Proposals should include an amount projected to be the actual costs for fringe benefits.  You may wish to use the table below to assist in determining the projected cost of benefits for full-time employees.  Fringe benefits for part-time employees (less than half-time) may be estimated at 8.44% of salary.  As in the past, actual costs for fringe benefits are charged to the sponsored project at the time the cost is incurred, based on the salary, selected benefits package and other variables applicable to the individual employee.  The table below provides an analysis of actual fringe benefits for full-time employees.

The fringe benefits as identified in our F&A Agreement are as follows:  FICA, Retirement, Worker’s Compensation, Life Insurance, Unemployment Insurance, Health Insurance, and Termination Accrued Leave.

The fringe benefits budget justification section of your budget should now read as follows:  Grant or Contract awards are responsible for the actual fringe benefits incurred by each employee.  Fringe benefits costs have been calculated based on historical data.  Actual costs for fringe benefits are charged (billed) to the sponsored project at the time the cost is incurred, based on salary, selected benefits package and other variables applicable to the individual employee.