1. 2006 Department Administrators Training Emory University School of Medicine Finances

2. 1 Presentation Topics  Facility and Administrative Costs  General and Administrative (G&A)

3. Facility and Administrative Costs (FAC)

4. 3 Facilities and Administrative Costs (previously known as indirect costs) Costs which cannot be readily and specifically identified with a specific project, program or activity, but which provide an overall benefit to Emory and sponsored agreements. These are charged to University funds and recovered through the application of the F & A rate.

5. 4 Facilities and Administrative Costs  FAC Rate agreement is re-negotiated regularly.  Fringe rates are re-negotiated every year.  Emory’s cognizant federal audit agency is DHHS.  Current rate agreement is under development/negotiation.  Rates differ by location, category of activity, and sponsoring agency.

6. 5 Facility and Administrative Cost Rates At-A-Glance

7. 6 EU FAC Waiver Policy  Posted on OSP’s website at http://www.osp.emory.edu/policies.cfm  Highlights include: Full federal FAC rate for federal sponsors Lower FAC rate accepted from non-profits if published and applied consistently (documentation from agency required) Industry CTs – minimum FAC rate is 25% Industry-sponsored research – full federal FAC rate Waiver request to School/Dean with final review/approval by OSP Review for adherence to DHHS/Fed and OMB regulations, bond agreement restrictions, IRS guidelines, etc.

8. 7 F&A Components

9. 8 How School of Medicine FAC Funds are Used FAC Recovery is used to offset Research-related expenses Research-related University costs allocated to School of Medicine  Operating and Maintenance Costs for Research Space  Office of Sponsored Programs  Office of Grants and Contracts Accounting  Institutional Review Board  Office of Technology Transfer  Office of VP Research Administration

10. 9 How School of Medicine FAC Funds are Used, continued  School of Medicine Direct Costs Portion of HSC Library Space Rental (TEC, EUH, Emory Briarcliff, Wesley Woods) Debt Service on research related buildings Research Infrastructure (DAR and EHSO) Support for School Core Labs (Service Centers) School of Medicine Clinical Trials Office Portion of departmental research administration SOM Research Administration & Business & Finance Offices

11. General and Administrative (G&A)

12. 11 General and Administrative (G&A)  Established to offset University Allocation to SOM  10% charge against all expenditures in Ledger 2 and non-grant and contract accounts  G&A does not apply to School funded accounts or practice plan funded accounts