RSS Icon Twitter icon Facebook icon

Finance & Accounting

BPM-203 Facilities and Administration Cost Recovery (Grants & Contracts)

Revised August 31, 2012

This policy applies to grants, contracts, agreements, cooperative agreements, memoranda of understanding and like documents which commit the University to conduct projects involving research, instruction, extension and public service or to perform services for outside sponsors.  Facilities and Administration (F&A) costs were formerly known as indirect costs.

Funds provided by industrial or commercial firms which do not impose any restrictions on the conduct of a project and do not require reports, are treated as gift funds and are processed through the campus Development Office.  All such funds must be reported to the campus Chief Research Officer.

REFERENCE:  BPM 212 - Gifts-Processing

WHEN F&A COST RECOVERY IS REQUIRED

Funds provided by outside sponsors of research, instruction, public service or other services must include an appropriate amount to offset F&A costs incurred by the University.

SCHEDULE OF F&A COSTS

F&A costs must be charged in accordance with a predetermined schedule of rates as authorized by the Vice President for Finance and Administration.

REFERENCE:  See Table at end of this section for the current schedule of F&A cost rates.

For Projects Supported by an Industrial or Commercial Firm or Foreign Government

F&A costs must be charged at a rate not less than the predetermined approved schedule of rates developed by the Vice President for Finance and Administration.

When a commercial or industrial firm requires rights in data to the exclusion of the University and/or claims ownership rights to intellectual property developed by the University under such a project, F&A costs must be charged at a rate not less than the scheduled rate and may be charged at a higher rate through negotiation by the campus.

The President must specifically approve any waiver of such intellectual property rights.

Partial Recovery of F&A Costs

Projects which do not permit full recovery of F&A costs must be charged allowable F&A costs in accordance with the published guidelines of the sponsor.  A certified action by the Board or Council of the sponsoring group is acceptable as "published guidelines" provided that action applies to all awardees.  Where there are not published guidelines and full recovery is contrary to general operational standards of the sponsoring group, the Vice President for Finance and Administration is authorized to negotiate a rate acceptable to both parties.

WAIVING F&A COST RECOVERY

Conditions Under Which Contributions of F&A Costs may be Considered

F&A cost recovery may be waived (cost contributed to the project by the University) when-

  • The sponsor does not provide for full payment, provided published literature of sponsor states that F&A costs are not allowed for any sponsored projects, and provided the project will essentially support the mission of the University.
  • The project is sponsored by a Missouri: state, county or municipal agency, provided the project is in keeping with the mission of the University and in support of activities funded from state, county or municipal tax sources. However, if the agency acts as the designated agency for disbursing federal funds, F&A costs are charged as if the project were funded directly by a federal agency.

NOTE:  Under this policy, general revenue sharing funds are considered non-federal as long as the county or municipal agency does not require compliance with federal regulations other than anti-discrimination policies.

Authority Required

The Chancellor or a designated representative may waive F&A cost recovery upon the recommendation of the department chairman and concurrence of the divisional Dean or designated representative.

Budgetary Implications

Approval to waive F&A cost recovery implies that the school and the campus or administrative unit involved has sufficient resources in money, personnel and facilities to meet the needs of the project and no additional demand will be made on other University resources for this purpose.

DISTRIBUTING F&A COST DOLLARS RECOVERED

When Only one Campus Participates in a Project

F&A costs recovered are credited to the General Operating budget of the campus or system unit.

When More Than one Campus Participates in a Project

F&A costs recovered are credited to the General Operating Budget of each participating campus or system unit based on the proportion of direct costs used to calculate F&A costs.

USING F&A COST FOR MATCHING FUND PURPOSES

If allowable under the terms of the funding source, unrealized F&A cost recovery may be used to satisfy matching requirements by prior approval of the Chief Research Officer of each campus involved, and provided that the project is in keeping with the mission of the University as determined by the Chancellor or designated representative.

SCHEDULE OF RATES FOR F&A COST RECOVERY

Rates effective July 1, 2012 - June 30, 2016

Base:

As determined by the sponsor in agreement with the University, the University will apply a negotiated rate to a defined base of expenses incurred on awards to determine the amount of F&A to recover from the sponsor. 

A base is generally defined by sponsors, consequently the University uses several base definitions that vary in the inclusion and exclusion of certain types of expenses.  A commonly used base is Modified Total Direct Costs (MTDC) consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel, and sub-awards up to the first $25,000 of each sub-award.  MTDC generally excludes equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each sub-award in excess of $25,000.

 



Application

Location

MU

UMKC

S&T

UMSL

System

Research
On-Campus (FY 2013)
On-Campus (FY 2014 -
                   FY 2015)
Off-Campus


51.5%
53.5%

26.0%


50.0%
51.0%

26.0%


51.5%
52.5%

26.0%


51.0%
51.0%

26.0%


51.5%
53.5%

26.0%

Sponsored Instruction
On-Campus
Off-Campus


48.0%
26.0%


49.0%
26.0%


44.0%
26.0%


51.5%
26.0%


51.5%
26.0%

Other Sponsored Activity
On-Campus
Off-Campus


30.0%
26.0%


30.0%
26.0%


34.0%
26.0%


35.0%
26.0%


30.0%
26.0%

NOTES:

  • These rates are negotiated with the U.S. Department of Health and Human Services periodically. The current rates have been negotiated to be effective on any awards obtained July 1, 2012 through June 30, 2016, and are provisional thereafter until amended or renegotiated.
  • For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Actual costs will be apportioned between on-campus and off-campus components. Each portion will bear the appropriate rate.
  • The fringe benefits are charged using a rate (s). Over/under recoveries from actual costs are adjusted in current or future periods. The directly claimed fringe benefits are as follows:
    • FICA
    • Long-term disability insurance
    • Group life insurance
    • Health insurance
    • Educational assistance program
    • Retirement
    • Worker's compensation insurance
    • Unemployment insurance
    • Dental insurance
    • Fee waiver-graduate students
    • Other post-employment benefits