All,

Several weeks ago, I posed a question on the list with regard to F&A costs
charged to state agencies.  I promised a summary.  The information below
summarizes the responses.  A hearty "thank you" to all who responded.

An additional note:  Essentially everyone who expressed an unsolicited
opinion (well over half the respondents), agreed that the universities get
the short end of the stick on working with their state agencies.  There is a
great deal of frustration over this issue, but no one seems to know how to
solve the problem.  In an effort to address it in Missouri, we have
calculated a state F&A rate by starting with the Federal F&A rate, and
crediting state appropriations expended by the University against the
components of the Federal rate.  We are now working with the state agencies
to explain this approach in order to reach an equitable rate that everyone
can work with.

Mike

State F&A Cost Rate Summary

1.  What rate do you charge on projects supported by state funds (not
federal flow through), and sponsored by an agency of your own state?
 0%              9
 5%              4
 8%              6
 10%     6
 15%     3
 20%     2
 21%     1
 23%     2
 25%     1
 26%     1
 Federal rate    3
 Market driven (whatever we can get)     11

2.  What rate do you charge on projects supported by state funds (not
federal flow through), and sponsored by an agency of another state?
 0%              1
 8%              1
 20%     1
 Federal rate    19
 Market driven (whatever we can get)     2

3.  What rate do you charge on projects supported by federal flow through
and sponsored by an agency of your own state?
 0%              1
 5%              3
 8%              4
 10%     2
 15%     2
 20%     2
 21%     1
 23%     1
 Same as state funds     3
 Federal rate    16
 Market driven (whatever we can get)     1

4.  How do you determine the rates charged for each category above?
 Negotiation with state  6
 Historical practice (tradition) 8
 Institutional policy    3
 State law       4
 Sponsor driven  12
 Market driven (negotiated case by case) 9
 Based on administrative portion of Fed rate     1
 Compute from Fed rate by crediting
 state contrib to Fed rate parts   2

Totals between questions are not equal, because more than one answer could
be applicable to a question from a single institution.

Michael J. Warnock, Director
Sponsored Program Administration
University of Missouri - Columbia
310 Jesse Hall
Columbia, MO  65211
ph. 573-882-4329       fax 573-884-4078

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