University of Connecticut University of UC Title Fallback Connecticut

Indirect Costs

 

F&A Rates

  • Proposals submitted to Sponsored Program Services after October 14, 2016 must use the appropriate F&A rate in accordance with the most recently negotiated rate agreement and University policy.
  • Proposals submitted to Sponsored Program Services on or before October 14, 2016 may use F&A rates in accordance with the agreement dated 4/19/16.  These pending proposals will be grandfathered at the proposed rate in all cases where re-budgeting to support the current rate would reduce the amount of direct costs.

Federal & Corporate Rate

 

Rate Base*

07/01/15 – 06/30/16

07/01/16 – 06/30/17

07/01/17 – 06/30/18

07/01/18 – 06/30/19

07/01/19 –
06/30/20

Research

On Campus

MTDC

58.0%

59.5%

59.5%

59.5%

61.0%

Off Campus(2)

MTDC

26.0%

26.0%

26.0%

26.0%

26.0%

Instruction

On Campus

MTDC

63.0%

57.0%

57.0%

57.0%

57.0%

Off Campus(2)

MTDC

26.0%

26.0%

26.0%

26.0%

26.0%

Other Sponsored Activities

On Campus

MTDC

29.2%

35.0%

35.0%

35.0%

35.0%

Off Campus(2)

MTDC

26.0%

26.0%

26.0%

26.0%

26.0%

The University’s F & A Agreement, negotiated with the Department of Health and Human Services: Cost/Indirect Cost Rate Agreement.

* F & A costs are calculated on Modified Total Direct Cost (MTDC) which is Direct Costs minus certain exclusions. Direct Costs include salary, fringe benefits, supplies, travel, animal per-diems and the first $25,000 of each subcontract, etc.

The exclusions include equipment over $5,000, rent, Specialized Service Facilities, fellowships, tuition and subcontract amounts beyond the first $25,000 for each subcontract.

  1. Equipment: In order to be consistent with State classification standards, the dollar threshold for capitalization of equipment at UConn is $5,000.
  2. For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off campus rate will apply. Grants or contracts will not be subject to more than one F & A rate. If more than 50% of a project is performed off campus, the off campus rate will apply to the entire project.

Sponsor Stated Limits

When the University collects F & A costs at less than the full federally negotiated rates,  F & A costs are charged to Total Direct Costs (including equipment, subcontracts, etc.,)  unless otherwise stated in the sponsor guidelines.

Funding from state agency appropriations and local municipalities are charged a current reduced rate of 20%.  F & A  costs should be charged to Total Direct Costs.

Reduction of F&A on Projects Having a Total Cost of $50k or Less

To allow for more buying power on small sponsored projects and to help foster smaller awards which may lead to additional funding, F&A on new awards received after October 1, 2017 with total costs of $50,000 or less, will be reduced to 20% or the difference between the full F&A rate and 20% will be distributed to the investigators F&A account.

Sponsored Program Services (SPS) has developed guidance and FAQs on how this program will be implemented.