I created the attached spreadsheet to help me figure this out.  Let me know if you have questions.  I tried to make the instructions “built-in”.

 

 

 

Will someone help me understand the 22% cap on F&A applied by USDA?  This is the language founded on USDA website: “Indirect Cost Limitations: NIFA is prohibited from paying indirect costs exceeding 22 percent of the total Federal funds provided under each award. This limitation is equivalent to 0.28205 of the total direct costs of an award. See Part IV, E (page 37) for additional information.”

 

So I am reading this to say for example: if my modified total direct cost is $2,900,000 (this amount includes subcontracts). The calculated value of my F&A cannot exceed $638,000, to include F&A on the first $25,000 of each subrecipient. 

 

My PI is saying I must also include in my calculation to establish the 22% CAP the F&A of my subs, this does not make sense to me. Which way is the correct way to ensure we do not exceed the 22% F&A cap?

 

Thank you for responding.

 

Gloria Greene, MA, CRA

Director

UAHuntsville, Office of Sponsored Programs

301 Sparkman Drive, VBRH E26

Huntsville, AL  35899

Voice: (256) 824-2657

Fax: (256) 824-6677

 

"The person who knows 'how' will always have a job. The person who knows 'why' will always be his boss."   -- Diane Ravitch

 

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