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What is a base?
It is made up of the specific direct project costs in your budget that are subject to F&A
Who determines ASU’s F&A rate?
The federal government determines the rates in conjunction with ASU using 2 CFR 200 (Uniform Guidance). ASU’s cognizant audit agency for this process is the U.S. Department of Health and Human Services. F&A cost rates are proposed, negotiated and approved every five years. Fringe benefits (ERE) rates are proposed, negotiated and approved annually. The most current F&A Rate Agreement continues in effect until new rates are finalized.
Why is the Department of Health and Human Services our cognizant audit agency?
There are three cognizant audit agencies (ONR, DoED, DHHS). Only universities who receive the bulk of their sponsored funding from Departments of Defense or Department of Education are assigned to the Office of Naval Research or DoED cognizant audit agencies. All other universities are assigned to Department of Health and Human Services.
Is the rate the same for every project?
No. The rate and base vary according to the type of project and the project’s performance site. Use the F&A rate determination wizard.
Do all projects use the same F&A base?
No. There are multiple bases, each appropriate to different situations. For instructions on applying the F&A Base in an ERA budget, refer to the ERA Budgets Guide.
Modified total direct costs
F&A is applied to all of the direct costs minus the following: equipment, capital expenditures, charges for patient care, participant support costs, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.
Total direct costs
The F&A rate is applied to all of the direct costs without exclusions. Total direct costs must be used for all sponsors who publish an F&A rate less than ASU’s standard rate (or full F&A rate) and who do not stipulate any direct cost category exclusions.
Total costs
This base is determined using total project costs. The Research Advancement Administrator will need to calculate the amount of F&A allowed based on the funding limit, and use that to determine what % on Total Direct Costs to apply in the ERA budget. See How to Calculate Unusual Indirect Costs.
Total direct costs minus exclusions
This XDC rate is used when a sponsor determines the categories to which F&A may be applied. For example, some sponsors may allow F&A only on personnel; others may allow all direct costs minus equipment, etc. XDC is an internal term used in ASU’s Enterprise Research Administration system. F&A is applied to all of the direct costs minus any budget items that are marked for exclusion.
What types of projects are there?
For types of projects, see the F&A Wizard.
Do I use the on-campus or off-campus rate?
If project activity occurs only at ASU facilities, then the on-campus rate is applied. If project activity occurs only at non-ASU facilities (including projects for which lease payments are direct charged to the project), then the off-campus rate is applied.
If project activity occurs both at ASU facilities and at non-ASU facilities (i.e., on- and off-campus), then a determination is made based on where personnel costs are incurred. If 75% or more of the project’s budgeted personnel costs are incurred at non-ASU facilities for which no rent is budgeted, then the off-campus rate will apply. If the project does budget rent for the non-ASU facilities, then if 50% or more of the project’s budgeted personnel costs are incurred at the non-ASU facility, the off campus rate will apply. Otherwise, the on-campus rate will apply to the entire project.
Subcontractor activities are excluded from the on/off campus rate determination. Only the portion of work to be actually conducted by ASU is considered.
What if a project qualifies for the off-campus rate in some years but not in others?
Budget the off-campus rate for the years the project qualifies and the on-campus rate for the rest of the years.
What rate do we use when the sponsor asks for a percentage of total project costs or limits F&A to percentage of total direct costs?
View the How to Calculate Unusual Indirect Costs for guidance on determining the rate and base, and how to enter into ERA.
Which F&A rate is used if the project crosses fiscal years?
If a start date is 6 months or more into a fiscal year, ERA will calculate amounts using the following fiscal year’s rates.
The sponsor is requesting a revised budget in order to make an award. Which F&A rate should be applied?
Use the F&A rates in the DHHS approved agreement in effect at the time the revision is submitted.
What F&A rate should be used when preparing revisions, supplements and renewals?
Use the F&A rates in the DHHS approved agreement in effect at the time of proposal preparation.
Do all proposals use the DHHS approved F&A rates?
There are some exceptions. However, it should be noted that these exceptions only apply when there are no federal funds involved. Projects with federal flow-through funds must abide by the instructions of the federal sponsor.
Industry/for-profit sponsored research agreements:
Use the F&A Wizard to determine rate.
Do the rates in the F&A Wizard apply to projects being transferred in to ASU?
The F&A Wizard has a special section devoted to projects being transferred in by PIs joining ASU. The rates in this section, in combination with Transfer of Sponsored Projects to ASU page, provide information pertaining to these projects.