Facility & Administrative Costs (F&A Costs)
The federal code of regulations defines Facility & Administrative (F&A) 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…” F&A was previously called "indirect costs," and is to be applied to all grants, contracts, and other agreements with federal, state, and private entities.
Periodically, the ǿմý negotiates its Federal F&A Rate Agreement through the U.S. Department of Health and 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% |
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.
Some, but not all, U.S. Department of Education and Louisiana Department of Education Teacher Training grants have a mandatory 8% F&A cap. If the terms for F&A rates are quoted in the literature of the funding agency or the private foundation funding source, attach this documentation to your . Negotiated rates which are less than ǿմý's federally negotiated rate must be submitted for the approval of the Vice President for Research & Economic Development and must have sufficient written documentation from the sponsor to support the request for the university to use a reduced F&A 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.