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Facilities and Administrative Costs

Facilities and Administrative Costs

New Facilities and Administrative Costs Rate Transition FAQ's

Facilities and Administrative (Indirect) Cost Rates

F&A costs are those costs associated with the infrastructure that supports the research enterprise (buildings and their maintenance, libraries, etc.) and which cannot easily be determined for each project. The University requires that F&A costs be included in all proposal budgets and that F&A costs be recovered to the maximum extent possible. F&A rates are negotiated with the U.S. Department of Health and Human Services.

Some government agencies and non-profit organizations do not pay the university's F&A cost rate; this should be stated clearly in their guidelines. The university may accept a lower F&A cost rate under the following conditions:

  • The sponsor is a federal, state or local government agency that, by agency policy or legislation, will not pay the university's F&A rate, and this policy is published in agency guidelines and is applied uniformly to all award recipients.

  • The sponsor is a private, not-for-profit, organization that has an official written policy of paying an F&A cost rate lower than the university's rate, and the rate is applied uniformly to all award recipients.

  • When a sponsor's F&A rate is lower than the University's approved rate, the rate is then applied to ALL costs (Total Direct Costs, NOT Modified Total Direct Costs), unless the sponsor specifically excludes certain categories.

To calculate the MTDC base, the following should be excluded from the direct cost:

  • Equipment over $5,000
  • Tuition and Fees

  • Stipends

  • Subcontracts after the first $25,000 (for each subcontract)

  • Participant Support Cost

Determination of On vs Off Campus Facilities and Administrative Costs

Rutgers, The State University of New Jersey has negotiated both on-campus and off-campus F&A rates with our cognizant agency, the Department of Health and Human Services (DHHS). All F&A rates applicable to sponsored awards can be found in the Federal Rate Agreements.

On-Campus” definition:  On-campus sponsored program activities are defined as activities conducted in facilities owned or leased by Rutgers and Rutgers provides all facilities and maintenance services for that space, such as housekeeping, landscaping, utilities, HVAC, etc.

Off-Campus” definition:  Off-campus sponsored program activities are defined as activities conducted in facilities not owned or maintained by Rutgers and all activities conducted at field locations where no permanent facilities are considered offsite and not apportioned between their onsite and offsite components.

Guidance and additional information for making this determination may be found in this document: FA On-Off Campus Determination 05202021.pdf

Request for Facilities and Administrative (Indirect) Cost Reduction/Waiver

It is Rutgers University policy that all sponsored research be charged for the full cost of an externally-funded project including all grants, contracts, or other types of agreements. This includes both the direct costs (allowable costs such as salaries, supplies etc. that are used to perform the project) and indirect costs, officially termed Facilities and Administrative (F&A) costs. Clarification about these costs and processes related to any changes in the F&A costs on sponsored program proposals may be found by clicking here.

Fringe Benefit Information

Information regardnig fringe benefits may be found on the Division of Cost Analysis and Reporting website at the link below.

Division of Grant and Contract Accounting (DGCA)

The downoads section provides a link to more information about the F&A rates and access to the official agreements.