Matt et al KSU has experienced the same pain that many of you mention. We recently have firmed up our policies and have reinforced what we thought all along. Just because somebody agrees to "waive" reimbursement of F&A does not mean that the costs simply disappear. So, in recognition that these are real costs, we have done away with the usage of the term "waiver" and replaced it with the notion that if a department or a college decides that they want to cost-share their reimbursement of their own respective infrastructure costs by finding alternate sources to fund these costs within their own respective units, then we will centrally agree to lower the rate to an amount no less than the equivalant to the percentage of F&A that would have been retained Centrally had the full rate been used. In other words, a department in the College of Arts and Sciences can request that the rate be lowered from our standard 45.5% to 28% and they then acknowledge on our cost share form that they are giving up their distribution of SRO (17.5% for Arts and Sciences departments). This means that the same amount of real dollars are retained Centrally to pay the real costs, the department gets zero, as they have chosen to shift their project related F&A costs incurred at the department level to other sources. They could also get their Dean to agree to do the same for the College and the same principles would apply. Bottom line, the lowest rate that will be considered without any special approvals is 25.7% (for Arts and Sciences as an example), the percentage of our standard rate that Central and Library would receive anyway. We have made the process to request special exceptions (i.e. when they want Central to cost share) very painful by requiring special letters and justifications as to why the University should shift the burden of these costs to our taxpayers. Result, our Central SRO receipts are increasing, requests for "waivers" are decreasing. We quite simply introduced this as an empowerment granted to the departments and colleges to seek reimbursement for their infrastructure costs in the manner they feel is best, but it does not provide them with any authority over how we reimburse our F&A costs Centrally. Of course, this program only works if you distribute SRO at your institution vs. retaining it all in Central Administration. This program was embraced by Dean's Council and we followed a very deliberate program of introduction to insure that the program was not misconstrued as another way for Central to "pick the pockets" of the departments and colleges. To implement this, one needs to look at the standard SRO distribution tables to establish the "lowest rate possible". In the above example, for a project housed in a department of the College of Arts and Sciences at full F&A, Central retains 56.5% of the 45.5% F&A rate, or 25.7%, the department receives 38.5% of the 45.5% standard rate, or 17.5%, and the College receives 5% of the 45.5% or 2.3%. Our "guidelines" brochure may be found at this URL: http://www.ksu.edu/research/proposal.info/f&abroch.htm Our Sponsored Project Cost Sharing Form is at this URL: http://www.ksu.edu/research/forms/index.htm As is the case with most of us in research administration, our policies have been established utilizing the generosity and wisdom of those who came before us and our colleagues across the nation (you), so if you see something that looks familiar, then our thanks go to you specifically. Paul. Date sent: Thu, 29 Mar 2001 09:31:05 -0600 Send reply to: Research Administration Discussion List <xxxxxx@hrinet.org> From: Matthew Clark <xxxxxx@IASTATE.EDU> Subject: Re: [RESADM-L] F&A Rates for Industrial Sponsors To: xxxxxx@HRINET.ORG > Hi Jane, > > This issue is one we're also trying to get a handle on. Iowa State is > struggling under a legacy of 'deals' that have been made over the past > decades. Our new Vice Provost is supporting us now as we recover our full > F&A (44.5%) whenever possible on corporate-sponsored research > projects. Naturally, there are a few hitches. > > Since we're a public institution, our in-state corporate partners have > developed an 'expectation' that they'll pay less (or no) > F&A. Unbelievably, they claim to have already supported the institution > through state taxes. (You know there are too many holes in that argument > to even go into here.... but I'm afraid those politics have proven to be a > bigger dragon than we can slay in one fight.) > > Another problem is that a course of dealing over the years has allowed some > faculty researchers (and some centers) to establish reduced rates with > their corporate partners (even the ones that are not in-state). In those > cases, we're "stepping up" to full recovery over a couple of years (25% > this year, 44.5% next year). With few exceptions now, we collect full F&A. > > Also, when PIs get their corporate researcher 'buddies' to write a letter > saying they don't pay F&A, we no longer accept them. Usually, the letter > fails to reference an established and published company policy. > > Good Luck > -Matt > > > > At 07:52 AM 3/29/01 -0500, you wrote: > >Good morning, Jane. At the University of North Carolina-ch we use our > >negotiated federal rate of 45.5% with our industry research > >agreements. see ya. > > > >"Youngers, Jane" wrote: > >> > >> > >>Good afternoon. > >> > >>I know that in the past we have compiled information on F&A rates used in > >>clinical studies sponsored by pharmaceutical companies. But I am not > >>sure we have compiled information on F&A rates used for industrial > >>sponsors of research. By this I mean, XYZ company funds a research > >>project in Dr. J's lab. > >> > >>If you would be willing to share your rates with me, I would be willing > >>to compile them and share them back. > >> > >>I am interested in: > >> > >>1. What F&A rate do you use for research projects funded by industry? > >>2. What is your federal on-campus research rate? > >>3. If there is a difference, why? > >> > >>Thanks. > >> > >>Jane > >>Jane A. Youngers > >>Director, Grants Management > >>University of Texas Health Science Center at San Antonio > >>Mail Code 7828 > >>7703 Floyd Curl Drive > >>San Antonio TX 78229-3900 > >>210.567.2333 > >>210.567.2344 fax > >>xxxxxx@uthscsa.edu > > > >-- > >Kent Walker > >Chief Contract Administrator > >University of North Carolina-CH > >Office of Contracts & Grants > >440 West Franklin Street > >Chapel Hill, NC 27599 > >Voice: 919-962-1353 > >E-Mail: xxxxxx@UNC.EDU > > > > Matthew E. Clark, JD > Director, Office of Sponsored Programs Administration > 2207 Pearson Hall, Suite 15 > Iowa State University > Ames, IA 50011 > (515)294-5225 ****************************************************** Paul R. Lowe, CRA Assistant Vice Provost for Research and Director of PreAward Services Office of Research and Sponsored Programs Kansas State University (785)532-6804 (voice) or (785)532-5944 (fax) URL: http://www.ksu.edu/research/ ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================
