Re: Increases in F&A Rates Cataneo, Kathy 30 Jun 2008 15:47 EST

Hi, Larry.  This scenario happened at UNH some years ago.  At the time
of award, you can charge the F&A rate(s) specified in your Rate
Agreement in effect for the period of the award; the charge rates are
tied to the FYs in your Rate Agreement, not to project years.

Using your example, if you receive an award tomorrow, you would charge
49% on direct expenses from 7/1/08 - 6/30/10, then 49.5% as of 7/1/10.

At UNH, when we have had a rate increase without much lead time (i.e.,
the proposal is under-budgeted for F&A), we give the PIs a "grace"
period to adjust.

Kathy Cataneo
UNH

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On
Behalf Of Lawrence Waxler
Sent: Monday, June 30, 2008 4:20 PM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] Increases in F&A Rates

So, here's the scenario.

We just negotiated a new F&A Research Rate (a.k.a. indirect cost rate
for those of you who have been in the business for a while) that has
step increases in the research rate:  48.5% from July 1, 2007 through
June 30, 2008 (this cleans-up a provisional period rate), 49.0% from
July 1, 2008 through June 30, 2010, and then to 49.5% from July 1, 2010
through June 30, 201.

I know that award F&A rates are supposed to be tied to the negotiated
rate of the period in which they are awarded, but, is that literally the
exact period or would that be the period of the overall multi-year rate
agreement. That is, if we receive a multi-year award tomorrow (happy new
year) would we charge 49.0% for the entire award, or could we charge our
increasing rate amounts over the term of the award since they are known
now and fall within the same Rate Agreement?

As a corollary, if we can charge the higher/increasing rates, would
they follow the period of each rate (our fiscal year) or each project
year?

~~~~~~~~~~~~~~~~~~~~~~~
Larry Waxler, Director
Office of Sponsored Programs
University of Southern Maine
5th Floor Bioscience Building
P.O. Box 9300
Portland, ME  04104-9300
Telephone: 207-780-4413
Telefax: 207-780-4927

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