Facilities and Administrative Costs
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REG 10.05.6
Authority: Vice Chancellor for Finance and Business
History: First Issued: July 1, 2002. Last Revised: March 16, 2004. Additional
History Information.
Contact Info: Assistant Director, Systems and Compliance (919) 515-8018
Office of Contracts
and Grants.
1. Introduction
This statement provides the guidelines that Colleges/Schools/Departments/Units
should apply in collecting and allocating facilities and administrative (F&A)
costs. F&A costs are those costs incurred for common objectives of the
University and therefore cannot be readily identified with a particular sponsored
award.
2. Guidelines
The University's
F&A Cost Rate structure is federally negotiated. The rate structure
is based on F&A costs incurred at the University level and at the College/School/Departments/Units.
The current rates and rate components can be found at www7.acs.ncsu.edu/cng/fac_admin_costs/.
Allocations and use of F&A cost reimbursement funds will follow University
and College/School/Unit level contributions to the overall F&A rate, insofar
as possible. The Vice Chancellor for Research, Outreach and Extension, in
consultation with the Vice Chancellor for Finance and Business, recommends
an annual F&A cost budget to the Chancellor for approval.
University policy permits Dean's level approval of proposals for non-federally
funded sponsored awards not exceeding a specified funding value of $25,000.
All awards are required to be reported to and reviewed by the Vice Chancellor
for Research, Outreach and Extension. All awards in this category will be
assessed an F&A rate of 15% of the total direct cost. This fee is a portion
of University level F&A costs and will not be included in the pro rata
share allocated annually to the Colleges. Proposals to federal and flow through
agencies will follow normal University procedures.
3. Centers, Institutes and Laboratories (CIL)
Centers, Institutes and Laboratories (CIL), which operate on the basis of
internally funded awards from a research fund pool generated from membership
fees and enhancement award funds, must follow these procedures:
3.1 CIL must budget 16.5% of membership fees and enhancement project funds
to support Department and College level infrastructure costs. Project/program
directors, department heads and deans agree upon these budgets.
3.2 An F&A rate of 9.5% of total direct costs will be assessed as a
portion of University level F&A costs.
4. Consortia
Consortia are handled the same way as CIL membership and enhancement projects.
A consortium is identified as multiple company funding generally received
in equal amounts used for subrecipient projects. The Vice Chancellor for Research,
Outreach and Extension must approve in writing the establishment of all consortia.
5. F&A Proposal Guidelines
5.1 The Office of State Budget and Management requires that the University
cover its costs of operations by claiming F&A costs on proposal budgets
for sponsored awards. Unless a waiver has been obtained, F&A costs
must be included in proposal budgets on sponsored projects, and the following
procedures must be adhered to:
5.1.1 When awarded, F&A costs will be budgeted and charged to each sponsored
project in accordance with the approved budget.
5.1.2 Rebudgeting funds to or from equipment and tuition may have an effect
on F&A costs. The College is responsible for completing budget revisions.
Contracts and Grants will review the calculation, and either approve
it or forward the approval request to the sponsor (this will be based
on the terms of the award).
5.1.3 At the end of the award, the Office of Contracts and Grants will prepare
an F&A Cost Analysis to ensure that the University has recovered
the maximum allowable F&A cost.
5.1.4 F&A costs may not be used to fund direct cost overruns unless
prior approval has been obtained from the sponsor.
It is the responsibility of the Colleges/Schools/Departments/Units to ensure
that appropriate F&A costs are included in all proposals for externally
funded contracts, grants, cooperative agreements and memorandums of agreement.
Failure to do so will affect allocations that would otherwise be made to that
College/School/Department/Unit.
5.2 A full or partial waiver of F&A costs can only be made when either
of the two following circumstances exists and must be demonstrated in
writing and included in the award package as supporting information:
5.2.1 The sponsor will not reimburse F&A costs of any amount or restricts
reimbursement to a rate less than the applicable University F&A
cost rate; OR,
5.2.2 Extraordinary circumstances exist which, if F&A costs are included
in a budget, may jeopardize the State's best interest.
Exceptions may also apply to longstanding corporate and foundation restriction
policies applied equally to all parties receiving contracts, grants or funded
agreements.
5.3 Waiver of F&A costs can only be granted in writing by the Vice Chancellor
for Research, Extension and Outreach.
