How do I apply F&A for cost share?
If allowed by the sponsor, Facilities & Adminsitrative (F&A) costs should be included in any commitment of cost share. There may be two components of F&A representing cost share.
- Imputed F&A calculated on the direct costs claimed as cost share.
- Imputed F&A calculated on the direct charged costs charged to the sponsored award (waived/unrecovered F&A).
Facilities & Administrative costs on the direct costs claimed as cost share are calculated at the negotiated rate and Modified Total Direct Costs (MTDC) base applicable to the award prior to any F&A waivers or reductions. This rate may be different from the actual rate being applied to direct charges on the awarded (benefitting) budget. It may also be different from the F&A rate being applied to the contributing budgets (if any).
F&A claimed as cost share represents foregone recovery of institutional costs incurred to support the research enterprise. These costs are not represented as an individual expense item on either the benefiting budget or the contributing budget and therefore does not place a cost burden on the department.
- The fact that a sponsor limits or prohibits F&A charges as a reimbursable cost on the sponsored agreement does not necessarily mean they limit or prohibit F&A as cost share.
- If the sponsor does specifically limit or prohibit F&A as cost share, place a note on the cost share addendum and use the rate specified by the sponsor.
Unless F&A for use as cost share is specifically limited or prohibited by the sponsor, use the negotiated rate applicable to the benefitting budget (the budget with the cost share commitment, not the contributing budgets) on any:
- Cost Share Addendums
- Cost Share Calculators
- Cost Share Contribution Reports
After a budget is set up, you may find the F&A rate being applied to cost share contributions in the Budget Profile of MyFD. It is called the "Cost Share I/C Rate".
Waived / Unrecovered F&A cost share is the difference in the actual F&A recovered from the sponsor and the F&A that would have been recovered had the sponsor reimbursed F&A at the applicable negotiated rate and base.