1. Federal agencies shall use the negotiated rates for F&A costs in effect at the time of the initial award throughout the life of the sponsored agreement. "Life" for the purpose of this subsection means each competitive segment of a project. A competitive segment is a period of years approved by the Federal funding agency at the time of the award. If negotiated rate agreements do not extend through the life of the sponsored agreement at the time of the initial award, then the negotiated rate for the last year of the sponsored agreement shall be extended through the end of the life of the sponsored agreement. Award levels for sponsored agreements may not be adjusted in future years as a result of changes in negotiated rates.

We had the same issue and calculated the F&A by splitting the calculation as described below.  This didn't cause any grants.gov errors. 
 
Alex
 

-----------------------------------------<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Alexander Schoen

Director, Office of Sponsored Programs

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Winthrop-University Hospital

222 Station Plaza North, Suite 510

Mineola, NY  11501

Phone: (516) 663-4931

Fax:     (516) 663-9718

xxxxxx@winthrop.org
-----Original Message-----
From: Research Administration List [ mailto:xxxxxx@hrinet.org] On Behalf Of Evelyn Ford
Sent: Tuesday, May 01, 2007 5:39 AM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] F&A rates and grants.gov

Hi, Vicki --

We've had to deal with exactly this situation for quite awhile.

On both the modular (PHS398 Modular Budget) and Research & Related Budget forms in PureEdge, there are four lines available in each budget period to show the calculation for F&A. Just show the amount used as a base for the first calculation on the first line and then the balance for 7 months on the second line. Each line has it's own F&A rate to be applied against it.

So, if your base is $100,000 for the entire year, then line 1 would show a base of $50,000, the rate would be cited as 51.5%, and funds requested would be $25,750. The second line would be an F&A base of $70,000, rate = 52.5%, funds requested = $36,750. If you had an unusual situation where the distribution of the base wasn't straightforward, you could determine some other distribution of the base amount in the two periods, but be sure to explain it in the budget justificaiton.

-- Evelyn
---------------------------------------------------
Evelyn J. Ford
Director, Sponsored Research
Center for Clinical Epidemiology & Biostatistics
School of Medicine, University of Pennsylvania
103C Blockley Hall
423 Guardian Drive
Philadelphia PA 19104-6021
voice 215.573.1360        fax 215.573.5518
xxxxxx@mail.med.upenn.edu
http://www.cceb.upenn.edu/


At 08:13 PM 4/30/2007, Vicki Krell wrote:

Hi, everyone. We’ve just renegotiated our F&A rate and are now trying to determine how to best and most accurately indicate the correct rate on a grants.gov budget (let’s use NIH as an example) when we might have 2 different rates that apply to one budget year. In the old days, we could just type in 5 months at 51.5% and 7 months at 52.5% (for example) but I can’t think of any way that is possible on an NIH itemized budget in grants.gov. We’ve discussed budgeting with the rate in affect at the start of the budget period for that entire year, but we’re also trying to see all our options. Since I’m sure that many of you in Researchadmin land have been or will be in a similar situation, any opinions, suggestions, etc. would be greatly appreciated.
 
Thanks!
Vicki
 
Vicki Krell, CRA
Sponsored Projects Site Supervisor
Office for Research and Sponsored Projects Admin.
Arizona State University
(480) 965-2171
(480) 965-1703 - fax
xxxxxx@asu.edu
 

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---------------------------------------------------
Evelyn J. Ford
Director, Sponsored Research
Center for Clinical Epidemiology & Biostatistics
School of Medicine, University of Pennsylvania
103C Blockley Hall
423 Guardian Drive
Philadelphia PA 19104-6021
voice 215.573.1360        fax 215.573.5518
xxxxxx@mail.med.upenn.edu
http://www.cceb.upenn.edu/

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