Boston University Senior Vice President, CFO & Treasurer
881 Commonwealth Avenue, 4th Floor
Boston, Massachusetts 02215
T 617-353-2290 F 617-353-5492
Memorandum
TO:
Vice Presidents, Deans, Directors, Department Chairs,
Principal Investigators and Project Directors
FROM:
Jean Morrison, University Provost
Karen Antman, Provost, Boston University Medical Campus
Martin J. Howard, Senior Vice President, CFO and Treasurer
DATE:
June 3, 2015
SUBJECT: New Facilities & Administrative (F&A) Cost Rates
New Fringe Benefit Rates on Grants & Contracts for FY
2016/2017
New Graduate Student Health Plan Rate for FY 2016/2017
Boston University has recently concluded Facilities & Administrative (F&A) cost rate
negotiations with the Department of Health & Human Services. The following rates should be
reflected on all future sponsored proposals for the dates specified below:
Facilities & Administrative Cost Rates
July 1, 2014 – June 30, 2016
On Campus
Off Campus
Research
Instruction/Training
Other
63.7%
26.0%
52.6%
26.0%
36.3%
26.0%
July 1, 2016 – June 30, 2018
On Campus
Off Campus
Research
Instruction/Training
Other
64.5%
26.0%
53.0%
26.0%
38.0%
26.0%
July 1, 2018 – June 30, 2019
On Campus
Off Campus
Research
Instruction/Training
Other
65.0%
26.0%
53.0%
26.0%
39.0%
26.0%
The above F&A rates will be applied on a modified total direct cost (MTDC) basis. MTDC is
defined as total direct costs less the following expenses:
 Room and / or board allowance (GL account 517200)
 Patient services (GL account 516300)
 Moveable capital equipment costing $5,000 or more (GL accounts 571400 and 571420)
 Subcontract costs (GL account 517520) exceeding $25,000 on each subcontract
 Student aid (GL accounts 520100-524999)
 External rent (GL account 576100-576120)
 Alteration and renovation costs
Boston University has also recently concluded fringe benefit rate negotiations with the Department
of Health & Human Services for the two fiscal years 2016 and 2017 beginning July 1, 2015. The
two year term was negotiated to achieve stability for the rates. The following rates should be
reflected on all future sponsored proposals where there is activity for the dates specified below:
Fringe Benefit Rates
July 1, 2015 – Until Amended
Professional
Support Staff
Graduate Students
Federal and
Federal PassThrough Awards*
27.0%
24.0%
Non-Federal
Awards
8.8%
8.8%
28.8%
25.8%
* Awards from non-federal sponsors, where the prime award is from a federal agency, are
subject to the rate applicable to federal awards.
In accordance with federal regulations governing the calculation of fringe benefit rates, Boston
University has removed the costs associated with tuition remission/exchange for family members
of employees from the federal fringe benefit costs pool.
In order to continue this benefit for our employees and their family members, it is necessary to
establish separate fringe benefit rates for federal awards (including awards with federal passthrough funding) and non-federal awards. The non-federal fringe benefit rates include the costs
of tuition remission/exchange for family members of employees.
The Graduate Student Health Plan rate will be applied to the amounts paid to graduate students
(GL accounts 500410, 500452) supported by continuing awards and new sponsored program
awards, as well as those supported by endowment, gifts, or discretionary accounts.
Questions regarding the use of these rates on proposal budgets should be referred to the Office of
Sponsored Programs (617) 353-4365. Additional guidance will be forthcoming.