1. 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

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

3. Summary of Rates – FY 2010 through FY 2014

4. 4 Organized Research Rate: New Negotiated Rates (FY 2010-2014) Previously Negotiated Rates (FY 2005-2009) On-campus 54% -- FY 2010-2012 54.5% -- FY 2013-2014 55.5% -- FY 2005-2007 56% -- FY 2008-2009 Off-campus26% South Lake Union 66% -- FY 2010; 68% FY 2011; 72% -- FY 2012; 73% -- FY 2013; 74% -- FY 2014 66% 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)

5. 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: http://www.washington.edu/research/main.php?page=ospRates&entryTab=2 or http://f2.washington.edu/fm/maa/references 5

6. 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

7. 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

8. 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

9. Questions 9 If you come up with additional questions later maahelp@uw.edu gcahelp@uw.edu osphelp@uw.edu sagehelp@uw.edu

10. 10 Contact Information Management Accounting and Analysis Cristi Chapman 543-9985 cristic@uw.edu Joe Nalley 543-1266 jwfn@uw.edu Grant and Contract Accounting Kirsten DeFries 543-2957 kirsten5@uw.edu Ted Mordhorst 616-8678 tedm2@uw.edu Office of Sponsored Programs Carol Rhodes 543-2139 carhodes@uw.edu Sinh Simmons 685-7165 ssimmons@uw.edu