Most institutions have a federally negotiated F&A (Facilities & Administration) rate that is included in grant proposals.
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
- Sum the total direct costs (= A)
- Take the total direct costs and subtract:
- Patient Care
- Participant costs (possibly)
- 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)
- 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)
- Add F&A costs to total direct costs to arrive at Total Costs: (D + A = total costs)
- 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 your Pre Award Grants and Contracts Aministrator.