Implementation of New Facilities and Administrative (F&A) Rates RAA Brown Bag January 2011 Management Accounting and Analysis A Division of Financial Management within Finance and Facilities

Agenda Summary of Rates – FY 2010 through FY 2014 Rate Agreement Specifics Where we are currently and next steps Questions 2

Summary of Rates – FY 2010 through FY 2014

4 Organized Research Rate: New Negotiated Rates (FY ) Previously Negotiated Rates (FY ) On-campus 54% -- FY % -- FY % -- FY % -- FY Off-campus26% South Lake Union 66% -- FY 2010; 68% FY 2011; 72% -- FY 2012; 73% -- FY 2013; 74% -- FY % Regional Primate Center 42% (A)/ 78% (A+B)/ 83% (A+B+C) 44% (A)/ 75% (A+B) Applied Physics Lab17% Other Sponsored Activity 33.8% (on-campus) 26% (off-campus) n/a Vessel25% (S&W) Instruction 53.0% (on-campus) 26% (off-campus) 58% (on-campus) 26% (off-campus)

Rate Agreement Specifics Date of Rate Agreement = November 30, 2010 Rates effective from July 1, 2009 through June 30, 2014 (FY 10-FY14) Links to signed rate agreement and rate components: or 5

What’s Happening Now We are using new rates in proposal applications now. Administrative systems and GIM 13a are being updated with new rates: –FAS (and MyFD), SAGE, Cost Share Module, etc. Certain F&A costs will be adjusted to reflect lower on- campus OR rate: –On-campus federal and federal pass-through awards, –New awards or competitive renewals on or after July 1, 2009, and –Current actual F&A rate > 54% 6

Next Steps List of awards/budgets impacted by adjustment being finalized now. Retroactive Adjustment Details: –The reduction in indirect cost will increase available unallocated direct budget –Timing –Other considerations (cost sharing and reporting impacts, etc.) Future Questions to be Addressed: –Impact on RCR calculations and distributions –Impact on cost sharing 7

FAQ Do I pro-rate the F&A rate if there is a change mid- budget year? OSP has stated that we need to get Sponsor approval on the reallocation from F&A to direct costs on my new eligible award, because it is federal flow-through not under expanded authorities. How do I rebudget? Do I put the difference between 56% and 54% into direct costs? 8

Questions 9 If you come up with additional questions later

10 Contact Information Management Accounting and Analysis Cristi Chapman Joe Nalley Grant and Contract Accounting Kirsten DeFries Ted Mordhorst Office of Sponsored Programs Carol Rhodes Sinh Simmons