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Implementation Instructions for New F&A Rates

last updated 07/15/14

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 5/19/14 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, 5/19/14).    

Download a copy of the 5/19/14 DHHS F&A Rate Agreement

HOW TO CALCULATE F&A:

  1. Determine start date of project (e.g., January 1, 2015). 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 15 rate and 4 months at the FY 16 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 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.


"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 5/19/14.

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

For additional guidance on the use of the on-campus and off-campus rates, please visit: http://www.research.northwestern.edu/osr/b_appropriate_fa.html


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