Application of Facilities & Administrative Cost Rates

Background

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.

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