The Facilities & Administrative (F&A) Rates (also called indirect cost rate or overhead) are established based on federal regulations. The application of F&A rates allows New York University (NYU) to recover certain costs such as facilities, utilities and administrative costs that support sponsored programs, but are not easily identified with a specific project.
All proposals must include NYU’s F&A rate, unless a reduced rate is granted by the Provost or a designee in accordance with NYU’s policy. See Facilities and Administrative Cost Waivers.
The F&A rates in effect at the time of the initial award remain in effect throughout the life of the agreement.
Modified Total Direct Costs (MTDC) is the base to which F&A (indirect cost) rates are applied. The Negotiated Rate Agreement defines this base as follows:
- Modified Total Direct Costs consist of all salaries and wages, fringe benefits, materials and supplies, services, travel, subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract)
- Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, participant support costs, student tuition remission, rental costs of off-site facilities, scholarships and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000
The off-campus F&A rate is applicable for projects that are conducted off-site (in a facility not owned or operated by NYU) for a consecutive period of 3 months or longer.
F&A rates are based on actual F&A and direct costs from a prior year (the base year). There are different rates for Organized Research (OR), Instruction, Other Sponsored Activities (OSA) and off-campus.
F&A (indirect) Costs are those that are incurred for common or joint activities of the University and therefore cannot be identified readily and specifically with a particular sponsored project, instructional activity or any other University activity. A more detailed explanation of F&A costs are provided in the Costing Policy.
Frequently Asked Questions
F&A is calculated daily in FAME based on direct expenditures, as well as the appropriate base; i.e., modified total direct cost.
Open SPA 005: Facilities and Administrative Costs in iLearn (NYUHome login required)
This learning module will discuss facilities and administrative costs, and will cover the following policies as outlined in the SPA Handbook:
- Application of Facilities and Administrative Cost Rates
- Facilities and Administrative Cost Waivers
Duration: 21:00 minutes