Facilities and administrative (F&A) costs are those incurred for common or
joint objectives and cannot be identified readily and specifically with a
particular sponsored project. F&A costs are also referred to as indirect
costs.
For example, an investigator's use of electrical power, water and other
utilities, or the services of the purchasing and accounting offices or the
library are not normally charged directly because it is not practical to
account for them separately.
The UW has standard F&A cost rates for on- and off-campus (there are a few
exceptions). The standard rates are negotiated and approved by Department of
Health and Human Services. Refer to the Primer on
Indirect Costs for more information on how the standard rate is
calculated. After 1987, indirect costs are not charged on gifts.
F&A costs benefit the research but are initially paid for by the University.
The F&A cost rate (expressed as a percentage) is charged to direct costs
on each research project to reimburse the University. Almost all award
documents detail the authorized F&A cost rate and the awarded F&A cost amount.
This example reconciles F&A costs charged on the BAR. The F&A cost rate is 26% and
the F&A cost base is 18 (Modified Total Direct Costs). For this base, equipment
and tuition are not subject to F&A costs.
Direct Cost Categories |
FAS Object Code |
Amount |
Salaries & Wages |
01 |
10,000 |
Rent |
03-80 |
4,000 |
Travel |
04 |
5,000 |
Supplies |
05 |
2,000 |
Equipment |
06 |
3,500 |
Benefits |
07 |
2,500 |
Tuition |
08-05 |
1,000 |
Total |
|
28,000 |
Amount of direct costs on which F&A cost will be calculated:
Total Direct Costs |
28,000 |
Less: Exemptions |
|
Rent |
(4000) |
Equipment |
(3500) |
Tuition |
(1000) |
Base |
19,000 |
X F&A Rate |
26% |
F&A Costs |
4,940 |
