Re: Falling F&A Rate Herbert B. Chermside 20 Feb 2003 13:30 EST

VCU has adopted the policy that we will charge the awarded rate throughout
the project period.  Our F&A rate is "predetermined", so there will not be
adjustments.

Chuck

At 01:02 PM 2/20/2003 -0500, you wrote:
>However on the same page it also states that "F&A costs awarded may be
>subject to upward or downward adjustment, depending on the type of rate
>negotiated, and grantees amy rebudget between direct and F&A costs (in
>either direction) without NIH prior approval, provided there is no change
>in the scope of the approved project."
>
>How are other institutions handling F&A or fringe benefit rates
>adjustments on current and pending awards?
>
>gina
>
> >>> xxxxxx@UMKC.EDU 02/20/03 10:55AM >>>
>Page 83 of the NIH Grants Policy Statement provides the explanation --
>the F&A for entire project period is calculated on the basis of the F&A
>rate in place at the beginning of the competitive period.
>
>At a previous institution, the rate went from 40 to 43 and then back to
>41.  While the awards were not adjusted, the organization adjusted its
>F&A recovery.  So, for the first change, PIs had to re-budget from
>direct to indirect without changing  the total costs.  Then when it went
>down, the got a little back as direct costs.
>
>John
>
>John R. Baumann, Ph.D.
>Director
>Office of Sponsored Programs & Research Support
>University of Missouri -- Kansas City
>5100 Rockhill Road (US Postal Service)
>5211 Rockhill Road (Express Delivery)
>Kansas City, MO 64110
>
>816.235.1303 (v)
>816.235.6532 (f)
>xxxxxx@umkc.edu
>
>
>-----Original Message-----
>From: Ruth Tallman [<mailto:xxxxxx@LEHIGH.EDU]>mailto:xxxxxx@LEHIGH.EDU]
>Sent: Thursday, February 20, 2003 9:45 AM
>To: xxxxxx@HRINET.ORG
>Subject: [RESADM-L] Falling F&A Rate
>
>
>Good Morning, O Wise Resadm-l'ers,
>
>Twice in one day I found myself talking about new awards and using the
>F&A rate that was in effect at the time of the award throughout the
>project period (usually three years).
>
>Would someone please direct me to the standard or circular in which this
>is spelled out?  Drawing a blank.
>
>One of the reasons this came up is because our rate is about to go down
>by 4 percentage points effective July 1, 2003.  Would you please let me
>know how you would deal with this at your institution?  Here are the
>issues we've discussed:
>
>For new awards (not continuations) that come in over the next four
>months, should we re-negotiate the F&A rate before receiving the award?
>
>Would your institution stand firm at the old rate for three years of a
>new award?
>
>What if... a proposal was submitted at the higher rate but is awarded
>after 7/1/03 - would your institution set-up the new award at the old,
>proposed rate or use the new rate and rebudget the funds into other
>budget categories?
>
>If you rebudget awards proposed at the old, higher rate using the new
>lower rate, do you claim the difference as cost-sharing?
>
>I think it would be required to cost-share the difference but then,
>right now,  I don't know where to begin to look for the topic of keeping
>the F&A rate constant for the life of the award!  (It's the stress of
>digging out of 24 inches of snow during an orange alert.)
>
>As always, your feedback would be most appreciated.
>
>Ruth Tallman
>Office of Research and Sponsored Programs
>Lehigh University
>526 Brodhead Avenue
>Bethlehem, PA  18015
>Phone:   (610)758-3024
>FAX:      (610)758-5994
>E-mail:   xxxxxx@lehigh.edu
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Biotech One, Suite 113
 Virginia Biotechnology Research Park
 800 East Leigh Street
 Richmond, VA 23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://www.research.vcu.edu/ospa.htm

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