Formula for Determining the Amount of Cost Share Committed
Faculty without Clinical Salary
- Determine the percent of effort pledged and multiply by the full-time
salary dollar amount. Full time salary is the amount listed on OPUS as "Full
Time Rate."
- Multiply the dollar amount resulting from Step One by the current fringe
benefit rate. (This rate is located in Administrative Applications, choose
FIN and Select Screen 9 [Payroll Rate Inquiries])
- Add the result of Step One and Step Two.
- Multiply the sum calculated in Step Three by the Facilities and Administrative
Cost Rate (also called indirect cost rate). Always use the STANDARD rate
listed in the Facilities
and Administrative Rate Agreement. Choose either the Facilities and
Administrative Rate Agreement or the Facilities and Administrative Rate
Components to determine the correct rate.
- Add the result of Step Three to the amount calculated in Step Four.
This is the amount of cost share committed including salary, fringe benefits
and indirect costs.
Example:
| Full Time Salary: |
$6496 |
| Percent cost share pledged: |
10% |
| Fringe benefit rate: |
21.7% |
| Indirect cost rate: |
26% |
| Step One: |
0.10 x 6496 = |
650 |
| Step Two: |
650 x 0.217 = |
141 |
| Step Three: |
650 + 141 = |
791 |
| Step Four: |
791 x 0.26 = |
206 |
| Step Five: |
791 + 206 = |
997 |
| |
$997 is Total Cost Share Committed |
|
Faculty with Clinical Salary:
- Determine the full-time salary amount. Full time salary is the amount
listed on the PAF as "Full Time Rate."
- Determine the clinical salary amount from the Change Transaction Memo.
- Determine total salary amount by adding the value determined in Step
One to the value determined in Step Two.
- Determine the percent of effort pledged and multiply by the result
of Step Three.
- Multiply the dollar amount resulting from Step Four by the current
fringe benefit rate. (This rate is located in Administrative Applications,
choose FIN and Select Screen 9 [Payroll Rate Inquiries])
- Add the result of Step Four and Step Five.
- Multiply the sum calculated in Step Six by the Facilities and Administrative
Cost Rate (also called indirect cost rate). Always use the STANDARD rate
listed in the Facilities
and Administrative Rate Agreement. Choose either the Facilities and
Administrative Rate Agreement or the Facilities and Administrative Rate
Components to determine the correct rate.
- Add the result of Step Six to the amount calculated in Step Seven.
This is the amount of cost share committed including salary, fringe benefits
and indirect costs.
Example:
| Full Time Salary: |
$6496 |
| Clinical Salary: |
$1525 |
|
Total Salary: |
$8021 |
| Percent cost share pledged: |
10% |
| Fringe benefit rate: |
21.7% |
| Indirect cost rate: |
26% |
| Step One: |
6496 = |
6496 |
| Step Two: |
1525 = |
1525 |
| Step Three: |
6496 + 1525 = |
8021 |
| Step Four: |
0.10 x 8021 = |
802 |
| Step Five: |
802 x 0.217 = |
174 |
| Step Six: |
802 + 174 = |
976 |
| Step Seven: |
976 x 0.26 = |
254 |
| Step Eight: |
976 + 254 = |
1230 |
| |
$1230 is Total Cost Share Committed |
|
