Facilities and Administrative Costs

Facilities and Administrative Costs

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

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

The FY16 rates below are based on the rate agreementdated 05/04/2016. These rates are to be applied provisionally for FY17 until a new rate agreement is signed. Additional information regarding fringe benefits may be found on the Cost Analysis website. These links appear in the Additional Information section

Personnel Type Fringe Base (%) FICA/Medicare (%) Total (%)
Regular Salaried Employee (Rutgers & RBHS) 44.35 7.65 52
Post Doctoral Associate Salaries (Rutgers) 43.15 7.65 50.8
Graduate Assistants/TA (Rutgers) 31.49 0 31.49
Coadjutant, Wages of Labor, Other Comp and Faculty Summer (Rutgers) 0 7.65 7.65
       
Post Doc (RBHS) 0 7.65 7.65
Graduate Student (RBHS) 0 0 0
Housestaff (RBHS) 31.89 7.65 39.54

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.