Finance develops and negotiates the University’s federally approved facilities and administrative and fringe benefit rates, oversees federal reporting and audit support and works closely with campus sponsored programs offices to ensure grants are compliant with federal standards for budgeting, billing and monitoring.
Facilities and administrative costs reimburse the University for essential infrastructure and administrative services that support sponsored projects but cannot be directly assigned to individual awards. These include facilities operations, utilities, shared research spaces, libraries, and administrative support. Applying the correct rate ensures that the University can sustain its research environment and meet federal stewardship requirements.
Facilities & Administrative Rates
Facilities & Administrative Rates
Facilities and administrative (F&A) rates and fringe benefit rates are federally negotiated and assist with sponsored project budgeting and award management. F&A rates vary by activity (organized research, instruction or other sponsored activities) and whether project work takes place on campus or off campus. On‑campus activities use the on‑campus rate and projects primarily performed in non‑University facilities use off‑campus rates.
Determine the rate that applies by aligning the project’s purpose and performance location with the definitions in the current rate agreement and University policy. Your campus sponsored programs offices can provide support to ensure proposals use the appropriate rate. Use the latest agreement unless your sponsor or award specifies otherwise.
For additional information, please see University Policy 27025 Facilities and Administrative Costs; Policy 27002 Allowable Costs and Cost Principles and Policy 27010 Effort Verification Reports.
Archived Rate Agreements (2021-2026)
Archived Rate Agreements (2021-2026)
Modified Total Direct Costs Base
Modified Total Direct Costs Base
Most sponsored projects at the University use the modified total direct costs (MTDC) base. MTDC includes salaries and wages, fringe benefits, materials and supplies, services, travel and up to the first portion of each subaward. It excludes equipment, capital expenditures, patient care costs, rental costs, tuition remission, scholarships, fellowships, participant support costs, and any subaward amount that exceeds the allowable threshold.
For awards beginning on or after July 1, 2025, the MTDC base includes the first $50,000 of each subaward; earlier awards continue using the $25,000 threshold unless amended to reflect the 2024 Uniform Guidance revisions.
Internal Processes
Internal Processes
Letter of Credit Draw Frequency
Draws occur weekly, biweekly or monthly depending on sponsor activity levels and unbilled balances. Some agencies (e.g., DHHS, Department of Education, NSF) are typically drawn weekly. Deposits generally post the next business day after the draw, though timing may vary by agency release process.
Federal Financial Reports (FFRs)
FFRs are prepared quarterly in January, April, July, and October, covering the quarters ending March 31, June 30, September 30, and December 31. Each report must be submitted within 30 days after the close of the reporting quarter. Final expenditures must align with internal records before final reporting.