GIM 22
Attachment A
A Primer on Facilities and Administrative Costs
About this Primer
This Primer is designed to provide background information about Facilities and
Administrative (F&A) costs to members of the University of Washington community.
It begins with a brief history of F&A cost funding, then describes how F&A cost
rates are calculated, defines the various cost components used to calculate an
institutional rate, and explains how F&A cost recovery provides significant funding
for the infrastructure and administrative activities necessary to carry out the
University's research programs.
The May 1996 revision of the Cost Principles for Educational Institutions (OMB
Circular A-21) replaced the term indirect costs with the term
Facilities and Administrative (F&A) costs. The two terms--indirect costs and
F&A costs--have the same meaning. Throughout this primer, we will use the official
term used in OMB Circular A-21--facilities and administrative (F&A) costs.
Based on its April 1996 rate proposal to the Department of Health and Human Services
(approved May 1997), the UW submitted a request in August 2000 for an extension to
that earlier agreement. Negotiations were finalized in February 2001 and revised
rates for the additional years were established through June 30, 2004.
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