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 ====================================================================== 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") ====================================================================== ====================================================================== 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") ======================================================================