Facilities & Administrative Costs
Facilities & Administrative (F&A) costs, frequently referred to as indirect costs, are expressed as a percentage applied to sponsored projects in order to recover allowable overhead costs associated with conducting projects at UAF.
The university negotiates an indirect cost rate agreement with the Office of Naval Research to recover F&A costs on sponsored projects. Facilities and administrative (F&A) cost recovery rates are based on actual costs the university has incurred. F&A recovery supports general institutional costs that are incurred for common and joint objectives. These are real costs that cannot be readily identified to a particular project or activity, so they are charged indirectly.
It is UAF's policy to charge our full negotiated F&A rate on all projects, unless a sponsor has restrictions on the recovery of F&A costs. If a sponsor restricts F&A recovery, the dean or director of the department must decide whether or not to approve the proposal submission to that sponsor. If a reduced F&A rate is required by the sponsor, the sponsor's published F&A rate policy must be included with the proposal when it is submitted to OGCA for review. Note that if a sponsor allows the budgeting of UAF's full F&A rate, a voluntary waiver to reduce the rate below the negotiated rate will not be accepted.
Any F&A under-recovery (when rates fall below negotiated rates) is paid according to standing UAF F&A under-recovery procedures. Please note that while the under-recovery policy is still in place, UAF now uses a 60/40 distribution plan for all awards and activity types, regardless of the rate used.
Understanding the Facilities and Administration (F&A) Cost Calculation
Why Is F&A Recovery So Important? Explaining F&A to Faculty
Please see the following series of videos published by NCURA covering the topic of F&A recovery.
Part 1: Explaining to Your Faculty that F&A is Mechanism for Reimbursement of Costs that Have Already Been Incurred and How the F&A Rate is Calculated
Part 2: A Simple Way to Explain the Federal Research Dollar Effective F&A Rate to Your Faculty
Part 3: Explaining F&A to Your Faculty: The F&A Rate is a Weighted Average Across the University
Part 4: Explaining F&A to Your Faculty: Last Thoughts on Explaining the Benefit of F&A to Your Faculty