Implementation Instructions for New F&A Rates

last updated 01/23/13

Download the Notice on Facilities and Administrative (F&A) Rates for use in proposals submitted and awards received as of October 1, 2011

Download the 5/30/12 F&A rate agreement

 

Federal Funds (and Federal Flow Through)*

Nature of Sponsored Activity	On/Off Campus	FY 2010 9/1/09- 8/31/10	FY 2011 9/1/010- 8/31/11	FY 2012 9/1/011- 8/31/12	FY 2013 9/1/012- 8/31/13	FY 2014 9/1/013- 8/31/14	FY 2015 9/1/014- 8/31/15	FY 2016 Beginning 9/1/15- 8/31/16 and thereafter (Provisional)
Sponsored Research	On Campus Off Campus	52.5% 26.0%	52.5% 26.0%	54.5% 26.0%	54.5% 26.0%	54.5% 26.0%	54.5% 26.0%	54.5% 26.0%
* Department of Defense (DoD) Contracts *	On Campus Off Campus	53.5% 26.0%	53.5% 26.0%	55.5% 26.0%	55.5% 26.0%	55.5% 26.0%	55.5% 26.0%	55.5% 26.0%
Instruction/Sponsored Training	On Campus Off Campus	51.0% 26.0%	51.0% 26.0%	51.0% 26.0%	51.0% 26.0%	51.0% 26.0%	51.0% 26.0%	51.0% 26.0%
Other Sponsored Activity	On Campus Off Campus	36.0% 26.0%	36.0% 26.0%	36.0% 26.0%	36.0% 26.0%	36.0% 26.0%	36.0% 26.0%	36.0% 26.0%
Non-Federal Funding*
Sponsored Research	On Campus Off Campus	64.4% 33.3%	64.4% 33.3%	64.4% 31.3%	64.4% 31.3%	64.4% 31.3%	64.4% 31.3%	64.4% 31.3%
Instruction/Sponsored Training	On Campus Off Campus	89.1% 60.7%	89.1% 60.7%	78.3% 51.9%	78.3% 51.9%	78.3% 51.9%	78.3% 51.9%	78.3% 51.9%
Other Sponsored Activity	On Campus Off Campus	44.9% 34.8%	44.9% 34.8%	42.8% 31.8%	42.8% 31.8%	42.8% 31.8%	42.8% 31.8%	42.8% 31.8%
Industry Funded Clinical Trials	On or Off-Campus	26.0% TDC	26.0% TDC	30.0% TDC	30.0% TDC	30.0% TDC	30.0% TDC	30.0% TDC

*All rates shown above are Modified Total Direct Cost (MTDC) unless specifically listed as Total Direct Costs (TDC). Modified Total Direct Cost (MTDC) is defined as all proposed direct costs minus the following expenditure accounts:

• 77535: Fabricated Equipment (fabrication cost of $5,000 or more and a useful life of at least one year)
• 75490: Space Rental
• 75720: Hospital Medical Expenses
• 76910-76960: Telecommunication Expenses
• 77510-77599: Capital Equipment (acquisition cost of $5,000 or more and a useful life of at least one year)
• 78010-78080: Tuition and Stipends
• 78510: Amortization
• 78650: Subcontracts in Excess of the First $25,000

Total Direct Cost (TDC) is defined as all proposed direct costs, minus expenditures on object 78661 (IRB Fee). This object is only used on industry-funded clinical trials.

For non-profit sponsors, such as voluntary health organizations, which publish and reimburse at F&A rates that are lower than Northwestern's established rates, the TDC base should be used unless an MDTC base or specific individual cost exclusions are listed in the Sponsor's published rate.

PROPOSAL INSTRUCTIONS

F&A RATE AGREEMENT CITATION

If asked to cite Northwestern's federally-negotiated F&A rate agreement (i.e. NIH Checklist page), always list our current rate agreement date (DHHS, 5/16/11).    

Download a copy of the 5/30/12 DHHS F&A Rate Agreement

HOW TO CALCULATE F&A:

1. Determine start date of project (e.g., January 1, 2006). Note the increased significance of establishing a definitive start date on federal projects - if you change the start date, the F&A will need to be adjusted accordingly. When start date is in doubt, use the latest possible start date to ensure sufficient funding for F&A.
2. Identify the number of months in the budget period that will be assessed at each FY F&A rate (e.g. 8 months at the FY 06 rate and 4 months at the FY 07 rate).
3. Divide the total modified direct cost amount of the project by the number of months in the budget period (e.g. $200,000 / 12 = $16,666).
4. Multiply the number of months at the first F&A rate by the monthly modified direct cost amount and the number of months at the second F&A rate by the monthly modified direct cost amount. (e.g. [$16,666 x 8 x 49.5%] + [$16,666 x 4 x 51.0%] = $33,999 + $65,997 = $99,996)
5. Repeat for remaining budget periods.

NOTE: For ease of calculation, you may wish to use the blended rate "F&A Rate Tables" to calculate the F&A for various budget period start dates. Do not, however, list the blended rates (e.g. 50.38%) on your budget page as though they are Northwestern's actual F&A rate. Instead, use the budget justification statement shown below.

BUDGET JUSTIFICATION STATEMENT FOR PROPOSAL BUDGETS:

Add the following statement to all new and competitive renewal proposal budget justifications on federal projects (except NIH modular grants):

F&A has been calculated based on the following DHHS approved rates:

• 54.5% MTDC 9/1/11 - 8/31/12 - Predetermined
• 54.5% MTDC 9/1/12 - 8/31/13 - Predetermined
• 54.5% MTDC 9/1/13 - 8/31/14 - Predetermined
• 54.5% MTDC 9/1/14 - 8/31/15 - Predetermined
• 54.5% MTDC Beginning 9/1/15 - 8/31/16 and thereafter provisional

Special Instructions for NIH New and Renewal Applications
In Sections 3.a. through 3.e. of the checklist page, list only the first F&A rate that will be used during that budget period in the field marked "Rate applied" but enter the correct (blended) amount of F&A costs in the $ field. Also check the box below labeled "Off-site, other special rate, or more than one rate involved" and list the budget justification statement shown above.

AWARD INSTRUCTIONS

F&A RATES APPLIED ON AWARDS

Use the following chart to identify the F&A rate that applies to your project. You will need to know the fund source (federal, non-federal), the project type (research, instruction/training, other sponsored activity, or clinical trial), whether the project is on-campus or off-campus, the date the project period began, and in some cases, when the proposal for the current project period was submitted.

RESEARCH PROJECTS	Rate	Rate applies for what time period?
Federal Project
Project period began 9/1/04 or later	49.5% MTDC on-campus 51% MTDC on-campus 26% MTDC off-campus	Expenditures 10/1/05- 8/31/06 * Expenditures 9/1/06- 8/31/08 All expenditures, all years
Project period began 9/1/01 - 8/31/04	47% MTDC on-campus (provisional) 48% MTDC on-campus 49% MTDC on-campus 48.5% MTDC on-campus 26% MTDC off-campus	Expenditures through 2/28/02 Expenditures 3/1/02 - 8/31/02 Expenditures 9/1/02 - 8/31/03 Expenditures 9/1/03 - 9/30/05 * All expenditures, all years
Project period began < 5/1/96 or 2/23/98 - 8/31/01	47% MTDC on-campus 26% MTDC off-campus	All remaining years of competitive segment
Project period began 5/1/96 - 2/22/98	48% MTDC on-campus 26% MTDC off-campus	All remaining years of competitive segment
Department of Defense (DoD) Contracts
Project period began 9/1/04 or later	50.5% MTDC on-campus 52% MTDC on-campus 26% MTDC off-campus	Expenditures 10/1/05- 8/31/06 * Expenditures 9/1/06- 8/31/08 All expenditures, all years
Non Federal Project
Project period began 9/1/04 or later	56.6% MTDC on-campus 55.2% MTDC on-campus 27.9% MTDC off-campus 27.4% MTDC off-campus	Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 * Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 *
Award resulting from new or competing renewal proposal submitted 10/1/01 or later	56.6% MTDC on-campus 27.9% MTDC off-campus	Expenditures 3/1/02 through 8/31/04; rate provisional thereafter
Award resulting from new or competing renewal proposal submitted <10/1/01	53.7% MTDC on-campus 26.0% MTDC off-campus (should reflect the rate used in the proposal)	All years of the competitive segment
INSTRUCTION/TRAINING PROJECTS	Rate	Rate applies for what time period?
Federal Project
Project period began 9/1/04 or later	50% MTDC on-campus 26% MTDC off-campus	Expenditures 10/1/05- 8/31/08 * All expenditures, all years
Project period began 9/1/01-8/31/04	59.7% MTDC on-campus (provisional) 49% MTDC on-campus 26% MTDC off-campus	Expenditures through 2/28/02 Expenditures 3/1/02 -9/30/05 * All expenditures, all years
Project period began < 9/1/01	59.7% MTDC on-campus research 26% MTDC off-campus research	All remaining years of competitive segment
Non Federal Project
Project period began 9/1/04 or later	71.5.% MTDC on-campus 77.7% MTDC on-campus 42.4% MTDC off-campus 49.2% MTDC off-campus	Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 * Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 *
Award resulting from new or competing renewal proposal submitted 10/1/01 or later	71.5% MTDC on-campus 42.4% MTDC off-campus*	Expenditures 3/1/02 through 8/31/04; rate provisional thereafter
Award resulting from new or competing renewal proposal submitted <10/1/01	59.7% MTDC on-campus 26.0% MTDC off-campus (should reflect the rate used in the proposal)	All years of the competitive segment
OTHER SPONSORED ACTIVITIES PROJECTS	Rate	Rate applies for what time period?
Federal Project
Project period began 9/1/04 or later	39.0% MTDC on-campus 26.0% MTDC off-campus	Expenditures 9/1/04- 8/31/08 All expenditures, all years
Award received in response to a new or competing renewal proposal submitted 3/1/02 or later	39.0% MTDC on-campus 26.0% MTDC off-campus	All expenditures through 08/31/04, provisional rate thereafter
Award received in response to a proposal submitted prior to 3/1/02	Since the OSA rate did not exist when these proposals were first submitted, either the Research or Instruction/Training rate was used. Awards in response to these proposals will retain the "Research" or "Instruction/Training" rate through the end of the competitive segment.	Use project period begin date, rates, and expenditure time periods as outlined in the Research or Instruction/Training tables, above.
Non Federal Project
Project period began 9/1/04 or later	42.1% MTDC on-campus 43.1% MTDC on-campus 29% MTDC off-campus 30.1% MTDC off-campus	Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 * Expenditures 9/1/04- 9/30/05 * Expenditures 10/1/05- 8/31/08 *
Award resulting from new or competing renewal proposal submitted 10/1/01 or later	42.1% MTDC on-campus 29% MTDC off-campus	Expenditures 3/1/02 through 8/31/04; rate provisional thereafter
Award resulting from new or competing renewal proposal submitted <10/1/01	OSA rate did not exist; use Research or Instruction/Training rate as submitted in the original proposal	All years of the competitive segment
CLINICAL TRIALS	Rate	Rate applies for what time period?
Federal Project
Use federal research rate schedule	See above	See above
Industry Funded
All trials (investigator-initiated or sponsor-initiated)	26% TDC (unless existing agreement specifies a higher rate)	All years

* Northwestern applied the new DHHS approved rates to awards made on or after September 1, 2004. Although federal regulations allowed Northwestern to apply new rates to all transactions from September 1, 2004 forward on these awards, the University did not wish to reach back and apply the newF&A on funds already expended through 9/1/04-9/30/05. Northwestern applied the new F&A rates only to transactions from October 2005 going forward on awards received on or after September 1, 2004.

"OTHER SPONSORED ACTIVITIES" PROJECTS

Northwestern established an "Other Sponsored Activity" rate for non-federal projects in October 2001, and for federal projects in the F&A rate agreement dated 5/30/12.

Examples of "Other Sponsored Activity" include: 1) public service projects, such as sponsored health and/or community service projects, legal clinics and public information services; 2) contract for service activities, such as material testing agreements, Materials Technology Lab coating agreements, and Center for Public Safety instructional courses; 3) curriculum development awards and dissertation awards; and 4) sponsored symposia, seminars and conferences. Investigators should consult with OSR to determine which rate is appropriate given the nature and location of the proposed activity.

USE OF ON-CAMPUS OR OFF-CAMPUS RATE

Additional guidance will be provided on the use of the off-campus rate. Until further notice, continue to use the rates based on existing guidance.