(Original post and subsequent Q&A are available here on Research Operations News).
Effective July 1, 2018, ASU began assessing Facilities & Administrative (F&A) Costs on sponsored awards according to our applicable Federally-negotiated rate agreement.
Note: it is important to think in terms of ‘rate agreement’ rather than ‘rate’ alone, as Workday applies rates by Fiscal Year according to the associated rate agreement.
Does our F&A Rate Agreement apply to all sponsored awards?
ASU’s policy is to request and recover full F&A costs, whenever possible. ASU will apply the appropriate F&A on all proposals and awards unless the prime sponsor prohibits or has a published policy limiting the F&A rate.
For additional information related to instances when ASU applies F&A rates that differ from those in our F&A Rate Agreement, please see the F&A Sitelet on the researchadmin website:
- Grant Transfers: https://researchadmin.asu.edu/fa/transfer-yes
- Industry: https://researchadmin.asu.edu/fa/category-industry
- Off-Campus: https://researchadmin.asu.edu/fa/sponsored-on-or-off
- Charitable Grants (via ASUF): https://researchadmin.asu.edu/charitable
- Sponsor Limited Rates: https://researchadmin.asu.edu/fa
What are the requirements for F&A exception based on sponsor restriction? If F&A is noted in the Notice of Award (NOA), does that suffice?
If the NOA and/or program truly restrict the F&A rate, then we are able to create a unique F&A rate agreement within Workday for the affected award. This would typically only occur when the proposal was processed with a sponsor limited rate (e.g., A U.S. Department of Education opportunity that is limits F&A to 8%).
For most federal awards, including those from the National Science Foundation (NSF) and the National Institutes of Health (NIH), the F&A Rate Agreement in effect at the start date of the award should apply – regardless of what rate is listed in the NOA budget (which typically reflects the proposed F&A rate).
Which F&A Rate Agreement should be tied to my award?
It depends on the award start date. In ERA, the start date is labeled ‘Award Start Date’, in Workday it is labeled ‘Award Date.’
ASU’s current F&A Rate Agreement is effective from 7/1/2016 – 6/30/2020.
Our previous F&A Rate Agreement was effective from 7/1/2011 – 6/30/2016. . On 07/01/2016 our rate type transitioned from predetermined to provisional until a new rate agreement was approved. Under Uniform Guidance (2 CFR 200), “the provisional rate used at the time of the award must be adjusted once a rate is negotiated and approved by the cognizant agency for indirect costs”. Any award with a start date on or after 07/01/2016 should use the new rate agreement.
ASU’s treatment is consistent with agency specific Terms & Conditions. Using a rate that is different than what is listed on the NOA is appropriate when the rate listed in the NOA was based on a proposal budget using the provisional rate.
This policy is applied consistently to both Organized Research and Instruction projects. For example, if a project with the Instruction activity type was proposed with our provisional Instruction rate, and the award start date falls within the effective period of our current F&A Rate Agreement, then ASU must recover F&A at the lower rates associated with our current rate agreement (even though a higher rate is listed in the NOA).
- Although we used the previous Rate Agreement provisionally while awaiting a new agreement, the current Rate Agreement is retroactive to cover the provisional period.
- Additional Funds for a Sponsored Project will be tied to the F&A Rate Agreement effective at the time the additional funds were awarded.
|Award Start Date||Applicable Rate Agreement||On-Campus Research Rates||On-Campus Instruction Rates|
|Between 07/01/2011-6/30/2016||Previous Rate Agreement 5/2012|| |
FY12 – 52.5%
FY13 – 54%
FY14 – 54%
FY15 – 54.5%
FY-16 – 54.5%
*Awards made under this agreement that extend beyond FY16 will follow a rate of 54.5% from 07/01/2016 through the end of the award.
FY12 – 53%
FY13 – 51.6%
FY14 – 51.6%
FY15 – 51.6%
FY-16 – 51.6%
*Awards made under this agreement that extend beyond FY16 will follow a rate of 51.6% from 07/01/2016 through the end of the award.
|Between 7/01/2016 -6/30/2020|| |
Current Rate Agreement 7/2016
FY17 – 54.5%
FY18 – 56%
FY19 – 56.5%
FY20 – 57%
*Awards made under this agreement that extend beyond FY20 will follow a rate of 57% from 07/01/2020 through the end of the award.
FY17 – 51.6%
FY18 – 48%
FY19 – 48%
FY20 – 48%
*Awards made under this agreement that extend beyond FY20 will follow a rate of 48% from 07/01/2020 through the end of the award.
What is the process to address projects that are on tight budgets where rate increases will have a negative impact?
There is no formal appeals process. If the change negatively impacts the ability to complete the project scope of work, then please reach out to Heather Clark with specifics.
Where can I check which F&A Rate Agreement is tied to my award?
In ERA, the Rate Agreement is identified at the account level. Refer to the ERA Awards information page on the researchadmin website for instructions. (Tip: click ‘expand all’ and Ctrl F to search for ‘F&A Rate Agreement’)
In Workday, the F&A Rate Agreement is identified on the Award Lines Overview.
Who should I contact if I believe the F&A Rate Agreement for my award needs to be corrected?
Contact the team lead for your assigned Award Management Team.
Do we know what ASU’s F&A Rates will be for FY21 and FY22?
After 6/30/2020 ASU will continue to use our FY20 rates provisionally until a new F&A Rate Agreement is negotiated with the Department of Health and Human Services (DHHS) and fully-executed.
FY20 rates should be used to estimate F&A costs on research expenditures anticipated for FY21 and FY22.
Any awards with a start date between 7/1/2016- 6/30/2020 will continue to be tied to our current F&A Rate Agreement for the life of the award. (Note: additional funds/supplements will be tied to the effective F&A Rate Agreement based on the supplement award date).