1. Understanding Facilities & Administrative (F&A) Costs
UCLA Department of Medicine Office of Research Administration

2. UCLA Department of Medicine Office of Research Administration
F&A Basics
UCLA Department of Medicine Office of Research Administration

3. UCLA Department of Medicine Office of Research Administration
What is F&A?
Direct Cost: Any cost that can be specifically identified with a particular project, program, or activity or that can be directly assigned to such activities relatively easily and with a high degree of accuracy.
F&A Costs: Costs for common or joint objectives that cannot be readily identified with an individual project, program, or organizational activity.
UCLA Department of Medicine Office of Research Administration

4. F&A Costs are otherwise known as…
Overhead Costs
Indirect Costs
Sub 9H – at UCLA only
UCLA Department of Medicine Office of Research Administration

5. UCLA Department of Medicine Office of Research Administration
Types of F&A Bases
UCLA Department of Medicine Office of Research Administration

6. Modified Total Direct Cost (MTDC) Base
MTDC component is the base against which the federally negotiated rates are applied, and is derived by excluding certain costs from the Direct Cost total.
MTDC exclusions include:
Equipment
Patient Care
Alterations/Renovations
Space Rental
Tuition Remission/Fees
For Non-UC subawards, any amount beyond the first $25,000 TC of each subaward.
The total cost (TC) of subawards to other UC campuses
UCLA Department of Medicine Office of Research Administration

7. Total Direct Cost (TDC) Base
F&A calculated on the total of all direct costs of a project. There are no exclusions.
Most non-federal F&A rates are based on Total Direct Cost (TDC), not MTDC.
e.g. Pharm sponsored Clinical Trials (26% TDC), Non-profit Foundations, etc.
UCLA Department of Medicine Office of Research Administration

8. What is the “Current F&A Base Code”?
How do I find it?
Summary-By-Sub/Overhead Rate field
COP/Approp & Financial tab
AIS/OASIS – FS00 – Table AF (Account/CC-Fund Table)
What do the letters mean (i.e. J, B, C)?
Base & Object code Table for Indirect costs
UCLA Department of Medicine Office of Research Administration

9. Current F&A Rates & Cost Returns
UCLA Department of Medicine Office of Research Administration

10. UCLA’s Current F&A Rates
Research On-Campus - MTDC
54% - thru June 30, 2017
55% - 07/01/2017 – 06/30/2018
56% - 07/01/2018 – 06/30/2019
Research Off-Campus – 26% MTDC
Instruction On-Campus – 37% MTDC
Instruction Off-Campus – 26% MTDC
Clinical Trials – 26% TDC
Federal Teaching – 8% MTDC
NIH Training (T’s & F’s) and Ks Grants
Current F&A Rate Agreement – dated 05/03/2017
UCLA Department of Medicine Office of Research Administration

11. Annual Indirect Cost Return
What is it?
What is it based on?
UCLA Department of Medicine Office of Research Administration

12. UCLA Department of Medicine Office of Research Administration
F&A Reconciliation
UCLA Department of Medicine Office of Research Administration

13. Why Does F&A Need to be Reconciled?
Unbudgeted changes can occur:
PI spent the $ on an item that is excluded from F&A, but was not originally budgeted. EXAMPLE: Unbudgeted equipment. See Scenario 1
PI did NOT spend the $ allocated to an excluded item, but rather, spent it on an item NOT excluded from F&A. Example: Budgeted equipment. See Scenario 2
F&A rate changed during the project period, but may not have been changed in the UCLA financial system. Use F&A Reconciliation Tool
PI moved from on-campus to off-campus space, or vice-versa. Use F&A Reconciliation Tool
Item was not correctly Object Coded in the UCLA financial system. Use F&A Reconciliation Tool
UCLA Department of Medicine Office of Research Administration

14. Two F&A Tools Available
1) FPM/QDB F&A Reconciliation Tool
This report is also run automatically in the Smart Closeout Tool/PAMS
2) 9H Reconciliation Adjustment note located at the bottom of the FPM/QDB Summary by Sub Report
Run both reports frequently throughout the life of the award.
Do NOT assume the reports are correct. Do some research to determine WHY before making any adjustments.
UCLA Department of Medicine Office of Research Administration

15. Two Type of F&A Reconciliation: Appropriations & Expenditures
Which Tool Do I Use?
Use the Summary-By-Sub report* for the 9H reconciliation note located at the bottom of the report.
Why does this happen?
Actual expenditures differ from budget.
Be sure to research and understand what happened prior to making adjustment
How does it get adjusted/fixed?
FM can prepare a TOF
*Be sure to always enter the full FAU into QDB. Do not enter an “*” in the Account of Costcenter field. This will return incorrect results.
Expenditures
Which Tool Do I Use?
Use the F&A Reconconliation report in QDB
Why does this happen?
Incorrect F&A Rate was charged to expenditures
How does it get adjusted/fixed?
EFM must prepare a journal entry adjustment. FM can request.
UCLA Department of Medicine Office of Research Administration

16. Links from Today’s Class
OCGA’s F&A Website
Base & Object Code Table for F&A
FPM/QDB F&A Reconciliation Tool
Past F&A Rates
Links from Today’s Class
UCLA Department of Medicine Office of Research Administration

17. Revenue & Accounts Receivable
UCLA Department of Medicine Office of Research Administration

18. Revenue Account & Accounts Receivable
It is the Fund Manager’s responsibility to ensure that the total amount of the actual payments received from the sponsor match the amount budgeted and appropriated into the expense account.
UCLA Department of Medicine Office of Research Administration

19. UCLA Department of Medicine Office of Research Administration
Payment Methods
UCLA Department of Medicine Office of Research Administration

20. Understanding the Sponsor’s Payment Methods
A few of the payment methods (check the Award Snapshot:
Milestone Payment: Sponsor provides payments to UCLA based upon the completion of a milestone, as defined in the award document.
Letter of Credit: Sponsor provides payment electronically via the US Treasury (e.g. NIH). UCLA is required to submit drawdown requests and periodic financial reports.
UCLA Standard Invoice: Sponsor provides payments to UCLA based upon expenditures incurred. Sponsor does not have an invoice format specified, therefore, EFM uses the standard UCLA invoice template.
Sponsor Invoice Template: Sponsor provides payment based upon a request from UCLA on the Sponsor’s form. Formats vary and are identified in the Sponsor’s terms.
UCLA Department of Medicine Office of Research Administration

21. UCLA Department of Medicine Office of Research Administration
Clinical Trial Funds
UCLA Department of Medicine Office of Research Administration

22. UCLA Department of Medicine Office of Research Administration
Clinical Trial Funds
It is the Fund Manager’s responsibility to:
Ensure that checks from the sponsor have been received an processed for all outstanding invoices/income earned.
Ensure all revenue received has been transferred to the PI’s linked expense account (e.g. 4413xx).
Ensure the income received actually belongs to the clinical trial in question.
Clinical Trial CRU FAU:
UCLA Department of Medicine Office of Research Administration

23. UCLA Department of Medicine Office of Research Administration
Tracking Payments
UCLA Department of Medicine Office of Research Administration

24. UCLA Department of Medicine Office of Research Administration
Tracking Payments
Review the CRU funds
Private:
State/Local Gov’t:
Federal:
If you still cannot find the check, do the following:
Request a copy of the front & back of the paid check from the Sponsor.
If paid electronically, request a screen shot from the sponsor’s payment system.
Contact Robert Scott at EFM, and provide him with the following information:
Sponsor name
Check amount
Check date
UCLA Department of Medicine Office of Research Administration

25. Live Demonstration – Revenue Account & Accounts Receivable
Revenue Account & Accounts Receivable Chapter
Revenue Account List
Payment Methods
UCLA Department of Medicine Office of Research Administration

26. Payments in Foreign Funds
UCLA Department of Medicine Office of Research Administration

27. Links from Today’s Class
Payment Solutions & Compliance
Cash Handling Policy BUS-49
Human Subject Payments
Research Participant Payment
Petty Cash Funds
Gift Cards
Purchasing Forms
Contractor vs. Consultant FM Manual Chapter
Fiscal Close
Links from Today’s Class
UCLA Department of Medicine Office of Research Administration

28. UCLA Department of Medicine Office of Research Administration
Fiscal Closing
UCLA Department of Medicine Office of Research Administration

29. UCLA Department of Medicine Office of Research Administration
Fiscal Closing
Ledger clean-up
Zero out subs to close funds
Submit Closing Packets to EFM to close contract & grants
NPEARs
Unrestricted funds are limited to current fiscal year
Contract & Grant funds are limited to current fiscal year, plus 2 previous fiscal years
State funds
Carryforward requests
Indirect Cost Return balance should be < 10% of annual appropriation
UCLA Department of Medicine Office of Research Administration

30. Links from Today’s Class
Fiscal Close
Links from Today’s Class
UCLA Department of Medicine Office of Research Administration

31. Survey Link http://goo.gl/forms/C3gdjsL5y1
We appreciate if you would take a few moments to complete a short 5 question survey to help us improve your training experience. Thank you!
UCLA Department of Medicine Office of Research Administration