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When a proposal is submitted to a sponsor for funding consideration, the
budget will indicate specific dollar amounts of Facilities and Administration
Costs, matching funds, in-kind contributions, and cost sharing. As with other
budget categories, management of these funds fall under the purview of OMB
Circular A-21.
FACILITIES & ADMINISTRATION COSTS (Indirect Costs)
Facilities and Administration Costs are those costs also referred to as
overhead, overhead costs, or administrative costs. They are actual costs
incurred to conduct the normal business activities of an institution and are
not readily identified with or directly charged to a specific sponsored
research award. The normal activities of the College those general Facilities
and Administration Cost expenses include:
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- General Administration
- Departmental Administration
- Sponsored Research Awards Administration
- Operation and Maintenance
- Library
- Building and Equipment Depreciation
- Non-Capitalized Interest
Facilities and Administration Costs should be requested at the Department of
Health and Human Services approved rate on all sponsored research applications
unless the sponsor prohibits Facilities and Administration Costs or designates
another rate. Exceptions must be requested in writing and sent to the
appropriate Dean for your area.
The Off-Campus rate is to be charged only on those projects conducted at
sites outside of Hanover and areas immediately surrounding Hanover. The
Veteran's Administration in White River Junction, Vermont has a special
research rate of 29.8%.
In all other projects not conducted in Dartmouth owned buildings, rent
should NOT be included as a direct cost item if the On-Campus rate is used.
Rent is automatically included in the On-Campus Facilities and Administration
Costs and will be paid out of the Facilities and Administration Costs
recovered.
Please Note: Facilities and Administration Costs cannot be charged on
equipment, alterations and renovations, patient care costs, sub-award amounts
over $25,000, tuition remission, scholarships, fellowships, or rental costs of
off-site facilities. Facilities and Administration Costs are real and
auditable. If the College does not collect full reimbursement for these costs,
other College resources must be used to subsidize them.
Facilities and Administration Costs are calculated using a negotiated rate
of expense recovery based on the total cost of the sponsored research award,
minus the Facilities and Administration Cost rate. Negotiated rates are to be
used for all agreements with the federal government and for most non-federal
awards, as allowable. Information on current Facilities and Administration Cost
rates are available from the Office of Sponsored Projects.
Once the budget has been approved and a PTAEO account has
been established for the sponsored research award, the Principal
Investigator will generally not have responsibilities related to the recovery
of Facilities and Administration Costs. Facilities and Administration Cost
recovery is managed by the OSP. The Office maintains a database for each
sponsored research PTAEO account that computes Facilities and Administration
Cost recovery monthly based on the project's monthly costs specific budget
categories. The sponsor is then billed for these Facilities and Administration
Costs. Dollar limits on the amount of funds that can be recovered per month
have been programmed into the billing system. Funds received through Facilities
and Administration Cost recovery flow back into individual college pools. The
OSP does not become involved in how those funds are then allocated.
Quick Reference
- Excluded from Indirect Costs:
- Capital Equipment $2,500 or more
- Sub-Award after 1st $25,000 (Per each Sub-Award Agreement)
- Tuition Remission
- Patient Care Costs
- Alterations/Renovations
- Scholarship/Fellowship
- Rental cost offsite facility
- IRB, CCRC, Pharmacy Fees
- Indirect Costs are real and auditable costs
- Indirect Costs are reconciled by OSP
- Indirect Costs recovered get distributed back to the school that generated
the direct costs
- Negotiated
indirect costs rates
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