Reminder: Selecting the Correct F&A Base for an ERA Proposal Budget

When selecting the F&A Base on budget form 1.2 F&A Rate Determination, double-check that the appropriate base (TDC, MTDC, or XDC) has been selected:

  • TDC (Total Direct Costs): The F&A rate is applied to all of the direct costs without exclusions. TDC must be used for all sponsors who publish an F&A rate less than ASU’s full rate and who do not stipulate any direct cost category exclusions. Also, TDC is the correct F&A base for charitable grant proposals when the default ASU/ASUF rate of 11% is used.


  • MTDC (Modified Total Direct Costs): F&A is applied to all of the direct costs minus the exclusions listed in ASU’s F&A Rate Agreement. MTDC is used when our full, Federally-approved F&A rates are applied.


  • XDC: F&A is applied to all of the direct costs minus any budget items that the RA will mark for exclusion. XDC is an ERA workaround to be used when a sponsor policy limits F&A to a rate lower than ASU’s full rate AND requires that certain costs be excluded from the F&A base.


Questions? Contact, or your assigned Proposal GCO.