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Indirect Costs

Facilities and Administrative Cost Rate

The University has negotiated a new Facilities and Administrative (F&A) Cost Rate Agreement with rates as shown below. The Agreement is dated August 15, 2008. The new rates set forth below are predetermined for the period 9/1/08 - 8/31/10 and are provisional thereafter. A new category has been negotiated, “Other Sponsored Activities” (OSA), which are programs and projects financed by Federal and non-Federal agencies and organizations that involve the performance of work other than instruction and organized research. Examples of such programs and projects include grants for: travel, conferences or seminars, University public events, projects involving library collections, enhancing institutional resources (such as computer enhancements), “health service projects and community service programs” (OMB No. A-21 B. l.c). In addition to these negotiated rates, the University applies a rate of 25% of Total Direct Costs to clinical trials.

EFFECTIVE PERIOD	RATE (%)*	LOCATIONS	APPLICABLE TO
09/01/08 – 08/31/10	52.0	On Campus	Research
09/01/08 – 08/31/10	50.0	On Campus	Instruction
09/01/08 – 08/31/10	35.0	On Campus	Other Sponsored Activities
09/01/08 – 08/31/10	26.0	Off Campus	All (Research, Instruction, OSA)
09/01/08 – 08/31/10	13.0	ARL Research

(1) includes: Main Campus, J.J. Pickle Research Campus, and Port Aransas Marine Science Institute

*MODIFIED TOTAL DIRECT COST (MTDC) BASE = Total direct costs (including only the first $25,000 of each subgrant or subcontract) less: capital equipment (items $5,000 or more), computer time from the Computation Center, stipends and tuition payments, scholarships, fellowships, capital expenditures (including alterations and renovations and the materials component of equipment fabrication) and rental costs (space only).

The F&A category in sponsored projects' budgets should read as follows (except as otherwise noted above):

On-Campus:	52% of MTDC Predetermined 9/1/08 – 8/31/10
	52% of MTDC Provisional 9/1/10 - until amended

FRINGE BENEFITS

Proposals should include an amount projected to be the actual costs for fringe benefits. It is recommended that fringe benefits for full-time employees be estimated within the range of 25-28% of salary based on historical experience. Fringe benefits for part-time employees (less than half time) may be estimated at 8.51% of salary. As in the past, actual costs for fringe benefits are charged to the sponsored project at the time the cost is incurred, based on the salary, selected benefits package and other variables applicable to the individual employee.

The fringe benefits as identified in our F&A Agreement are as follows: FICA, Retirement, Worker’s Compensation, Life Insurance, Unemployment Insurance, Health Insurance, and Termination Accrued Leave.

The fringe benefits budget justification section of your budget should now read as follows: Sponsored awards are responsible for the actual fringe benefits incurred by each employee. Fringe benefits costs have been estimated based on historical data. However, actual costs for fringe benefits are charged (billed) to the sponsored project at the time the cost is incurred, based on salary, selected benefits package and other variables applicable to the individual employee.