A Letter from The Office of the Vice Chancellor for Research

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OVCR Annual ReportFiscal Year 2011Sponsored Project ExpenseProject TypeResearchResearch TrainingOther SponsoredActivitiesProjects and activities that discover new scientific areas, procedures anddevices.Support provided to pre/postdoctoral students and fellows involved inresearch training programs.Other activities such as public service, patient service, conference grants,community outreach programs and student aid.SchoolsSchool of MedicineSchool of Arts & SciencesSchool of EngineeringGeorge Warren Brown School of Social WorkOtherSam Fox School of Design and Visual ArtsJohn M. Olin School of BusinessSchool of LawCost CategoryDirect CostsF&A CostsExpenditures incurred that can be specifically identified to a particularsponsored agreement/project. Costs of this nature would include thosesuch as; faculty & staff salaries (and applicable fringe benefits),consultants, consumable supplies, travel, subagreements and equipment.Direct costs are booked to the general ledger on a daily basis.Abbreviated term for Facilities and Administrative (F&A) Costs (alsoknown as indirect/overhead costs). F&A costs are defined asexpenditures incurred for common or joint objectives which cannot bespecifically identified with a particular agreement/project. Costs of thisnature would include: utilities and building services, building andequipment depreciation, university/school/ department administration,research administration and the library. The University has negotiatedF&A rates with our cognizant federal agency (the Department of Health77
OVCR Annual ReportFiscal Year 2011Sponsored Project Expenseand Human Services). The F&A costs are posted to the general ledgermonthly, based upon the project’s direct or modified direct (excludescapital equipment, subcontract expenses > $25,000, patient care costs,tuition, and off-campus rent) costs and the applicable F&A rate.Cost SharingDefined as costs incurred under a specific cost objective which are notsupported by the sponsoring agency. Cost sharing can be described asthe dollar amount the University provides to support a sponsoredproject. The University will commit resources to support a project underthe following conditions:The University monitors and maintains cost sharing expenditures byestablishing separate accounts/funds in the general ledger. For eachsponsored project, a specific cost sharing account will be establishedbased upon the terms and conditions of the award. See Table 12 for asummary of the University’s cost sharing contributions.Facilities and Administrative (F&A) RatesSponsored projects awarded to the University provide funding for direct and F&A costs (seeabove). A percentage rate is applied to the direct costs in order to determine the F&Afunding/expenses for the project. The Federal F&A rate for on-campus research can change atthe start of a fiscal year, based upon our current rate agreement. Federal F&A rates are appliedbased on the competitive start date of the project. Non-federal sponsors will also providefunding for F&A costs, but the rates can vary based upon the internal policies of the sponsor.Noted below is a brief description of the major F&A rates.• 53% Federal on-campus research rate for projects awarded during the period7/1/02 – 6/30/06. Applied to modified total direct costs.• 52% Federal on-campus research rate for projects awarded during the period7/1/07 – 6/30/11. Applied to modified total direct costs.• 26% Federal off-campus research rate.• 25.8% Federal on-campus research rate for genome sequencing center projectsawarded during the period 7/1/06 – 6/30/11. Applied to modified totaldirect costs.• 8% Federal rate for research training and fellowship projects.• Other Includes various rates from federal, private and other governmentsponsors.78
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A Letter from The Office of the Vice Chancellor for Research

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