CNR F&A SUMMARY EXPLANATION for FY ’09-10 D. Robison, Jan. 2010 Total value of NC State sponsored F&A bearing C

1. CNR F&A SUMMARY EXPLANATION for FY ’09-10D. Robison, Jan. 2010 Total value of NC State sponsored F&A bearing C&G activity in FY’08-09 = $212,118,573 (grand total all sources ~$360M, 40% federal) Total value of NC State earned F&A in FY ’08-09 for use in FY ’09-10 = $30,411,206 • 14.3% F&A earned by NC State (max allowed=49% on-, 26.5% off-campus) Total value of CNR F&A bearing C&G activity in FY’08-09 = $7,347,884 (3.5% of NC State total)(CNR has 4 to 5% of all NC State faculty) Total value of CNR earned F&A in FY’08-09 for use in FY’09-10 = $815,478 (2.7% of NC State total ) (In ‘07-08 CNR earned ~17% more) • 11.1% F&A earned by CNR Then what happens to “our” $815,478 of earned F&A……?

2. How is the F&A earned by CNR (and every other unit on campus) used by upper administration and how is the amount returned to CNR determined? $815,478 = total CNR F&A earnings “plus” cash basis adjustment by VCRGS = +$8,671 = $824,149 “less” cash basis adjustment by VCRGS = - $11,144 =$813,005 Cash basis adjustments are to bring actual F&A earnedin line with the budgeted F&A use, which for FY’09-10 is ca. $30 million. This is an accounting mechanism to make sure all the accounts balance, since projected and actual F&A earned can differ, due to things like $ not used in a project and therefore no F&A earned on it, or $ moved from an F&A bearing line (e.g., supplies) to a non-F&A bearing line (e.g., equipment). THEN…….

3. THEN….. • Adjusted Cash Basis of CNR Earned F&A = $813,005 “less” VCRGS 1% contingency reserve for audit& disallowed expenses = -$ 8,130 [mandated] = $804,875 Total Allocated Base for CNR This amount is 99% of total, and becomes the new “base” for subsequent calculations (“College allocation base”) “less” 15% of new base (=College allocation base) for VCRGS strategic purposes = $120,731 Therefore The CNR “Adjusted College Allocation Base” = $684,144 This amount is 84% of the total CNR earned F&A and 85% of the (New) College allocation base after the VCRGS takes out funds for strategic purposes/investments….

4. The CNR “Adjusted College Allocation Base” = $684,144 • How does the VCRGS use 15% taken from each College (from CNR = $120,731) • for strategicpurposes/investments? In FY 08-09 the VCRGS used these funds for the following -- new initiatives and start-up/retention 32% grant match and cost-share 26% faculty research funding 12% research administration support 11% memberships 8% centers/institutes/initiatives 6% student support 5% other – such as waived F&A in best interests of the university • Across the University, on average, each College gets about 45% of this 15% back

5. What has CNR gotten back from the VCRGS strategic funds taken from College F&A? In FY’07-08, From VCRGS to CNR for - FR&PD $27,000 (all Depts) M2 equipment cost match $7,500 (WPS) Start-Up $75,000 (FER) Greenhouse $149,944 (FER/WPS) Nanotech initiatives $10,000 (WPS) Time of Flight Spectroscopy equipment cost match $40,000 (WPS) Total = $309,444 In FY’08-09, From VCRGS to CNR for -- FR&PD $27,000 (all Depts) Research Office staff support $20,000 Start-Up $50,000 (FER) Project cost match, ethanol from biomass $50,000 (WPS/FER) Total = $147,000 In FY’09-10, From VCRGS to CNR for – Anticipated, Still open for requests FR&PD $27,000 (all Depts) Dionex Ion Chromatograph $15,000 (WPS) Spectrophotometer $75,000 (FER/WPS) Total thus far = $117,000 We’re doing pretty well!

6. THEN…… • CNR “Adjusted College Allocation Base” = $684,144 (=85% of total earned after 1% contingency) • But, then….. “less” 63.1% of Adjusted College Allocation Base for University use = $431,695 This is the % and “basis” mandatedby our federally calculated F&A rate of 49%, and is renegotiated every 3 years • How does the university use this 63.1% • Building Use 5.4% = infrastructure, rental subsidies • Building Interest 3.9% = debt service on buildings • Ops & Mainten. 28.7% = of buildings and research infrastructure • Gen Administration 15% = F&B, UNC-GA, Chan, OIT, RGS, EEED, Grad Sch, Legal, Provost • Research Admin 6.8% = SPARCS, PDU, Federal Relations, C&G • Library Support 2.7% • Student Services 0.6% • Sum = 63.1% • Therefore 36.9% of Adj. College Allocation Base is returned to CNR = $252,449 (only sort of) • ca. 31% of the total F&A earned by CNR ($815,478) is returned for College allocations • But we’re not quite there yet; THEN…..

7. THEN….. Other mandated reductionsto the Adjusted College Allocation Base (from ‘09-10 returns) “less” $5,756 to help match GSSP (CNR generally accrues about $500,000 value in GSSP) • university-wide about $21 million goes into the GSSP each year, and this small amount • from F&A (about $500K total from all College earnings each year) helps to cover • discontinuities in State funding for GSSP “less” $76 for access to high performance computing “less” $701 for F&A waived in best interests of the College as requested by the College (this year charged to FER for Wildlife projects requiring waived F&A) “less” $6,567 for hazardous chemical and radioactive waste disposal in CNR (charged to WPS and FER by proportionate use) “less” $4548 for occupational medical costs (the University health service “travel clinic” used by faculty and staff) (charged back to Depts; this year all to FER – there’s a story here…) Thus the total adjusted F&A from ‘08-09 earnings available for internal College allocation in ‘09-10 = $239,349 DONE! Now, how was this F&A earned across CNR and how is it allocated in CNR & Depts?

8. Where did the F&A earned by CNR in ‘08-09 for ‘09-10 come from? Total No. F&A F&A $ % of Projects Active Earned Total In CNR overall 90 $815,478 100 In FER 37 $377,229 ~46.3 In WPS 29 $294,926 ~36.2 In PRTM 24 $143,323 ~17.6 Total No. No. Faculty No. Faculty Who Earned Faculty Earning F&A 80% of the F&A by Unit In CNR overall ~91 55 18 In FER ~48 26 9 In WPS ~21 20 7 In PRTM ~22 9 2

9. How is the F&A Returned to CNR Used? -- The ~ ‘09-10 CNR F&A Budget • F&A returned to CNR for ‘09-10 $239,349 (~30% of original total) • Uncommitted carryover from ‘08-09 9,966 • Committed carryover from ‘08-09 31,520 • Expenses • Research Office Staff • (Amanda 13%, Julie 4%, Ellen 100%) 70,731 • IT Group Support 12,500 • Strategic Development Unit 6,813 • Centennial Campus Rent 0 • Undergraduate Research 0 • Matching for FRPD Grants 9,313 • Research Office Supplies/Phone/Post/Misc 3,800 • Research Office Travel 3,000 • Research Office Strategic Investments 73,979 • FER 3,104 • WPS 60,500 (incl. the committed carryover) • PRTM 0 • CNR 375 • Uncommitted 10,000 • Balance Available to Depts. 100,699 (~12% of original total)

10. Of the F&A Returned to CNR ($239,349), the Balance Available to Depts. in FY’09-10 • =$100,699 (~12% of original total of $815, 78) • Allocated to CNR Depts. • ~$46,624 to FER in ‘09-10 (~46.3% of CNR total)($62,063 to FER in ‘08-09) • ~$36,400 to WPS in ‘09-10 (~36.2% of CNR total) ($53,754 to WPS in ‘08-09) • ~$17,675 to PRTM in ‘09-10 (~17.6% of CNR total) ($19,277 to PRT in ‘08-09)