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Facility & Administrative Costs (F&A Costs)

The Code of Federal Regulations (CFR) defines indirect costs as “those costs incurred for a common or joint purpose benefiting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted.” UNO and other institutions of higher education use the term "Facility & Administrative costs" (F&A costs) to refer to indirect costs, also sometimes known as overhead.

F&A costs are to be applied to all grants, contracts, and other agreements with federal, state, and private entities.

Periodically, the University of New Orleans negotiates its Federal F&A Rate Agreement through the U.S. Department of Health & Human Services. The current agreement is effective from July 1, 2021 through June 30, 2026. The rates shall be enforced until amended by further negotiation. The approved rates are:

Fiscal Year(s) Location Activity Rate
Former
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
On-campus Research 46%
On-campus Instruction 46%
Off-campus All programs 26%
Former
2023-2024
On-campus Research 47%
On-campus Instruction 46%
Off-campus All programs 26%
Current
2024-2025
On-campus Research 48%
On-campus Instruction 46%
Off-campus All programs 26%
2025-2026 On-campus Research 49%
On-campus Instruction 46%
Off-campus All programs 26%
Rate Agreements

2021-2026
2018-2021

 

F&A costs are calculated on all direct expenses except: equipment, fellowships, scholarships, tuition, off-site facility rental costs, participant support costs, and the portion of each subaward in excess of $25,000.

Proposed Rates vs. Effective Rates

According to 2 CFR Appendix-III-to-Part-200 C.7.a., "agencies must use the negotiated rates in effect at the time of the initial award throughout the life of the award." This means that UNO must use the F&A rate effective at the time of the award start date, regardless of the rate included at the time of the proposal.

If the rate effective at the award start date differs from the rate included when the work was proposed, direct costs must be reduced to accommodate the increased indirect costs.

Sponsor Rate Adjustments

If a sponsor requires an adjustment to UNO's negotiated F&A rate, attach documentation to your Proposal Routing Form. Sponsor-dictated rates which are less than UNO's federally-negotiated rate must be submitted for approval by the Vice President for Research & Economic Development and must have sufficient written documentation from the sponsor to support the request for an exception to the negotiated rate.

Return of Recovered F&A

The Office of Research has a policy to return a portion of recovered F&A costs to support colleges, departments, centers/institutes, and principal investigators as well as library and IT services. See IMD 85.002 for more information.

For more information about how the University of New Orleans uses F&A costs, visit the Office of Research FAQ page.
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