Most institutions have a federally negotiated F&A (Facilities & Administration) rate that is included in grant proposals.

• UMKC’s current F&A cost rates
• UMKC’s F&A rate agreement 

These F&A costs, also known as “indirect costs” or “overhead,” help cover the real expenses of university operations that are necessary to your research but can’t be specifically attributed to any single project.

F&A costs cover:

• depreciation of facilities
• facility operations
• allocation of shared services
• components of division administration

UMKC's F&A rates do not affect the F&A rates of subcontracting organizations.

How to calculate F&A Costs

1. Sum the total direct costs (= A)
2. Take the total direct costs and subtract:
   • Equipment
   • Patient Care
   • Participant costs (possibly)
   • Alterations/Renovations
   • Tuition & Fees
   • Portion of the subawards (your subcontract or subgrant) in excess of $25,000 (of the entire project period for each institution).
   • Rental costs
     Now you have the modified total direct costs (= B)
3. Next, Multiply B (modified total direct costs) by the appropriate F&A rate (C)
   B x C = D (the product of the appropriate F&A rate and the modified total direct costs)
4. Add F&A costs to total direct costs to arrive at Total Costs: (D + A = total costs)
5. All proposals should include F&A costs in their budget.

If you don't know if the grant you're applying to will use federal flow-through funds, call the grant's program office.