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Application of Facilities & Administrative Cost Rates

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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.

NYU Approach

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.

Application of Facilities & Administrative Cost Rates Includes:


Facilities & Administrative Cost Rates

The F&A rates in effect at the time of the initial award remain in effect throughout the life of the agreement.
F&A rates are applied to a project based on Modified Total Direct Costs (MTDC), which consist of costs such as personnel, supplies, consultants, travel, and subawards up to the first $25,000. MTDC excludes certain costs such as equipment and patient care. See below section on Application of Facilities & Administrative Cost Rates for the full definition.

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 Cost Proposal Process

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.

Basics of F&A

F&A Costs cannot be easily identified with a specific project. They are costs such as building, utilities, heat, lighting, repairs and maintenance. A more detailed explanation of F&A costs is provided in the Costing Policy.

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Frequently Asked Questions

F&A is calculated daily in Peoplesoft based on direct expenditures, as well as the appropriate base; i.e., modified total direct cost.

Handbook Table of Contents

NYU Policy:
Application of Facilities and Administrative Cost Rates Policy

Full Policy & Downloadable PDF available at the University Policy Website.

Read the Policy

NYU Negotiated Rate Agreement for Indirect Cost Rates

The rates approved in this agreement are for use on grants, contracts and other agreements with the Federal Government, subject to the conditions in Section III.  This document is provided through the Office of Sponsored Programs.

Download the PDF

Federal Regulations

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