Working with F&A at UVA
Caroline Beeman
By the end of this session you should be able
to solve this problem:
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
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
Your PI is writing a proposal for an $800,000 grant. This is
the total amount the sponsor is willing to pay for both direct
and F&A costs all together. This will be an Organized
Research activity.
The F&A rate for Organized Research is currently 50% and
will be 50% for the life of the grant.
Among the costs the PI expects to spend are: Tuition
remission = $6,000; Capital Equipment = $190,000; Travel
= $2,000; Subcontracts = $29,000; Supplies = $3,000.
You work in a SoM clinical department that returns the
department share of F&A to the PI.
The PI wants to know how much F&A he will get.
Working with F&A at UVA
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Calculation of the Facilities & Administrative Cost Rate
(aka = Indirect Cost Rate)
F&A COSTS

Building Depreciation

Equipment Depreciation

Interest on Debt

Operations & Maintenance

Library Support

General Administration

Departmental Administration

Sponsored Project Administration
$88,160,000
F&A Costs
DIRECT COSTS

Research Salaries & Fringes
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Consultant Services

Travel
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Technical Services

Research Supplies
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Subcontracts up to $25,000

Committed Cost Sharing
Direct Costs
$152,000,000
0.58 = 58%
Working with F&A at UVA
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The Direct Cost Bases

Bases represent an institution’s direct cost activities:

Instruction and Departmental Research (IDR)
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Organized Research (OR)
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Instruction
Sponsored Instruction
Departmental (non-sponsored) Research
Sponsored Research and Research Training
University-sponsored Research
Cost sharing
Other Sponsored Activities (OSA)
Other Institutional Activities (OIA)
Working with F&A at UVA
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The Direct Cost Bases

MTDC usually includes
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Salaries and wages & associated fringe benefits
Materials and supplies
Services
Travel
Sub-grants and subcontracts up to the first $25,000
MTDC excludes
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Equipment (capital equipment only)
Patient care
Tuition remission
Scholarships and fellowships
Sub-grant and subcontract costs over $25,000
Space rental costs
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How is the F & A Calculation Done?
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Start with Financial Statements – Operating Expenses
Adjustments – Unallowable costs, Interest, etc.
Map to OMB Circular A-21 Pools and Bases
Allocate Pools
Summarize Pool Allocations to Each Base
Calculate Rates
Working with F&A at UVA
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Organized Research F&A Rate
(as
Calculated)
07/01/09- 06/30/10 RESEARCH
F&A COMPONENTS
Allocated $
FACILITIES:
Building Depreciation
Equipment Depreciation
Interest
Operations & Maintenance
Utilities Cost Adjustment
Libraries
Total FACILITIES
ADMINISTRATION: *
General & Administrative
Departmental Administration
Sponsored Projects Admin
Total ADMINISTRATION
TOTAL
8.7M /
6.6M /
4.1M /
24.0M /
n/a
n/a
$ 43.4M
/ Base
$
$
$
$
$151.7M
$151.7M
$151.7M
$151.7M
$
$
$
$
9.3M / $157.8M
30.3M / $157.8M
8.7M / $157.8M
48.3M
$
91.7M
=
Rate
=
=
=
=
5.8%
4.3%
2.7%
15.8%
1.3%
2.5%
32.4%
=
5.9%
= 19.2%
=
5.5%
30.6%
63%
* Capped by the government.
Working with F&A at UVA
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UVA’s Current F&A Rates
Organized
Research
On
Other Sponsored
Instruction
Activity
Off
On
Bldg Depr’n
Equip Depr’n
Interest
O&M
Utility Cost Adj
Library
Admin Comp
4.4
3.2
1.8
14.5
1.3
2.5
26.0
26.0
2.5
0.8
0.6
9.3
-12.8
26.0
Total Rate
58.0
26.0
54.0
Off
On
Off
26.0
0.8
0.5
0.2
4.3
-2.2
26.0
26.0
26.0
36.0
26.0
http://www.virginia.edu/sponsoredprograms/RatesFY2012-FY2015.html
Working with F&A at UVA
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F&A Distribution
Percentage Allocations
For FY2011-2012
Allocation
State Admin (use the one that applies to your Org)
UVA Wise, SW Va Center, Ctr for Politics
All Others
30%
27.8%
Institutional Allocations (use all three of these)*
VPR
ITS
VPF/CFO
10.9%
2.28%
3.7%
Library Allocation (use the one that applies to your Org)*
Alderman Library
Health Sciences Library
2.89%
2.89%
Reserve for Capital Outlay (use the one that applies to your Org)**
Academic
School of Medicine
School of Nursing
UVA Wise
16.6%
16.6%
16.6%
20%
Schools (Deans & Departments - use the ones that apply to your Org)
Architecture
Arts & Sciences Dean
Arts & Sciences Departments
Curry Dean (from Departments)
Curry Dean (from Centers)
Curry Departments
Curry Centers
Engineering Dean
Engineering O&M
Engineering Departments
Nursing
SOM Dean (from Non-Clinical Departments)
SOM - Non-clinical Departments
SOM Dean (from Clinical Departments)
SOM - Clinical Departments
UVA Wise
Center for Politics
SW Va Center
Other Schools & Orgs
Working with F&A
at UVA
Percentage
To determine where the F&A from your grants is allocated add:
1) the State Admin percentage that applies to you
2) all the Insitutional Allocations*
3) one of the library allocations*
4) the Capital Outlay percentage that applies to you**
5) the Schools percentage(s) that applies to you
35.83%
19.05%
16.78%
32.247%
30.456%
3.583%
5.374%
21.23%
5.5%
9.1%
35.83%
27.225%
8.605%
6.425%
29.405%
50%
70%
70%
35.83%
9
Not subject to F&A
Working with F&A at UVA
$10,568.61 x 51.5% = $5,442.83
10
$13,416.98 x 54% = $7,245.17
Working with F&A at
UVA
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IS.FM- Detail Expenditures by Project
Working with F&A at
UVA
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http://www.virginia.edu/finance/finanalysis/overhead.html
Working with F&A at UVA
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Award Installments
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Revenue vs. Installment vs. Funding vs. Expenditure Report
Revenue Proj Carry Out Org:41120 MD-PSCH Psychiatry and NB Sciences
Revenue Project :106273 MD-PSCH
F&A Period : 'Aug-09'
Default to prior period : 'N'
MBU:MD-School of Medicine
Dept:MD-PSCH Psychiatric Medicine
Revenue Project :106273 MD-PSCH F&A
Revenue Proj Carry Out Org:41120 MD-PSCH Psychiatry and NB Sciences
Revenue Project Manager:Woodson, Teresa C
Internal
Revenue To Investment
Date
Program
-3,411,988.07
Award
Project
FA00059
MD-PSCH
F&A
Working with F&A at UVA
Budget
Commitments
Funding
Budget
Balance
Available
3,684,650.63
106273 MD-PSCH
F&A
106274 MD-PSCH
CIT Intervn
106275 MD-PSCHR&D Comp Res
106276 MD-PSCH
Mech Of ADHD
106277 MD-PSCH
Ind F&A Psychiatry
106714 MDPSCHGra Tuition,
1726
<3,411,988.07>
Installments
Project-todate
Expenses
Installment
Balance
Available
3,684,650.63
3,274,442.46 3,417,728.21
364,220.55 3,275,630.16 -507,506.30 -3,781,948.76
401.32
401.32
0.00
401.32
0.00
-401.32
3,301.76
123.06
0.00
3,301.76
3,178.70
-123.06
1,135.64
1,135.64
0.00
1,135.64
0.00
-1,135.64
48,266.71
22,341.83
195.18
48,266.71
25,729.70
-22,537.01
0.01
0.00
0.00
0.01
0.01
0.00
3,684,650.63 3,327,547.90 3,441,730.06
364,415.73 3,328,735.60 -478,597.89
-121,495.16
3,684,650.63 3,327,547.90 3,441,730.06
364,415.73 3,328,735.60 -478,597.89
-121,495.16
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Applying the F&A Rate – Problem 1
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F&A Rate = 40%
Research project budget for direct costs = $125,000
Item of equipment included in direct costs = $25,000
(only item excluded from the F&A base)
How much is F&A?
What is total cost of the project?
MTDC = Total direct costs - exclusions
MTDC = $125,000 - $25,000 = $100,000
F&A = MTDC x F&A rate
F&A = $100,000 x 40% = $40,000
Total cost = Total direct costs + F&A costs
Total cost = $125,000 + $40,000 = $165,000
Working with F&A at UVA
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Applying the F&A Rate – Problem 2
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F&A Rate = 58%
Research project budget for direct costs = $250,000
Subcontract costs = $75,000
What is total cost of the project?
MTDC = Total direct costs - exclusions
MTDC = $250,000 - exclusions
MTDC = $250,000 - ($75,000 - $25,000)
MTDC = $250,000 - $50,000 = $200,000
F&A = MTDC x F&A rate
F&A = $200,000 x 58% = $116,000
Total cost = Total direct costs + F&A costs
Total cost = $250,000 + $116,000 = $366,000
Working with F&A at UVA
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Applying the F&A Rate – Problem 3
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F&A Rate = 50%
Research project total award from sponsor = $500,000
Subcontract costs = $150,000
How much is MTDC? How much is F&A?
Total award = total direct + total F&A
Total award = (MTDC + exclusions) + (MTDC x F&A rate)
$500,000 = (MTDC + $125,000) + (MTDC x 50%)
$500,000 - $125,000 = MTDC + (MTDC x 0.50) = (MTDC x 1)+(MTDC x 0.5)
$375,000 = MTDC x (1.50)
MTDC = $375,000 / 1.50 = $250,000
F&A = MTDC x F&A rate = $250,000 x 50% = $125,000
Working with F&A at UVA
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How about the problem from the beginning?
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Your PI is writing a proposal for an $800,000 grant. This is the
total amount the sponsor is willing to pay for both direct and F&A
costs all together. This will be an Organized Research activity.
The F&A rate for Organized Research is currently 50% and will be
50% for the life of the grant.
Among the costs the PI expects to spend are: Tuition remission =
$6,000; Capital Equipment = $190,000; Travel = $2,000;
Subcontracts = $29,000; Supplies = $3,000.
You work in a SoM clinical department that returns the
department share of F&A to the PI.
The PI wants to know how much F&A he will get.
Working with F&A at
UVA
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The Solution
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Total grant available = $800,000
How much F&A does PI get?
Exclusions from MTDC: Tuition remission = $6,000; Subcontracts
= $29,000 - $25,000 = $4,000; Equipment = $190,000
Total Exclusions = $200,000
Total available = total direct + total F&A
Total available = (MTDC + exclusions) + (MTDC x F&A rate)
$800,000 = (MTDC + $200,000) + (MTDC x 50%)
$800,000 - $200,000 = MTDC + (MTDC x 0.50)
$600,000 = MTDC x (1.50)
MTDC = $600,000 / 1.50 = $400,000
F&A = MTDC x F&A rate = $400,000 x 50% = $200,000
PI (dept share) = $200,000 x 29.405% = $58,810.00
Working with F&A at UVA
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Information and Contacts
http://www.virginia.edu/finance/finanalysis/
http://www.virginia.edu/sponsoredprograms/RatesFY2012-FY2015.html
Caroline Beeman
924-1453
[email protected]
or
John Wallace-Smith
4-8928
[email protected]
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