University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview

1. Base year actual costs upon which July 1,2009 F&A rate will be based Prepare Proposal Negotiate F&A Rate New F&A Rate is Applied to new sponsored programs University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview F&A PROPOSAL TIMELINE July 1, 2009 July 1, 2010 December 31, 2010July 1, 2011 July 1, 2012 UCD Finance Office

2. SCHOOLS OFFICE OF ACADEMIC AFFAIRS CENTRAL SERVICES AND ADMINISTRATION • OBTAIN TOTAL F&A COSTS • Review all PeopleSoft transactions to identify F&A costs • Obtain space usage information from WebSpace • Obtain depreciation information from F.A.S.T. REMOVE UNALLOWABLE COSTS Marketing and Advertising  Official Functions  Bad Debt • ADMINISTRATION COST POOLS • General Administration • Departmental Administration • Sponsored Program Administration • Student Services • FACILITY COST POOLS • Building Depreciation • Land Improvements • Equipment Depreciation • Operations and Maintenance • Library University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview ESTABLISHING THE COST POOLS UCD Finance Office

3. FACILITY COST POOLS • Building Depreciation • Land Improvements • Equipment Depreciation • Operations and Maintenance • Library • ADMINISTRATIVE COST POOLS • General Administration • Departmental Administration • Sponsored Program Administration • Student Services University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview ALLOCATION BETWEEN THE COST POOLS UCD Finance Office

4. INSTRUCTION ORGANIZED RESEARCH OTHER SPONSORED ACTIVITY OTHER INSTITUTIONAL ACTIVITY • ADMINISTRATIVE COST POOLS • General Administration • Departmental Administration • Sponsored Program Administration • Student Services • FACILITY COST POOLS • Building Depreciation • Land Improvements • Equipment Depreciation • Operations and Maintenance • Library University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview COST POOLS ATTRIBUTED TO PRIMARY FUNCTIONS UCD Finance Office

5. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview ALLOCATION OF ADMINISTRATIVE COST POOLS General AdministrationModified total direct costs for each primary function as a percent of total modified total direct costs. Departmental Administration Two components - College/School Dean + Academic Departments Direct Charge Equivalent (DCE) Method– no cap Personnel Effort Reports for faculty – 3.6% cap Modified total direct costs by academic department Sponsored Program AdministrationSponsored program activity type Student Services Primarily allocated to instruction UCD Finance Office

6. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview • ALLOCATION OF FACILITY COST POOLS Building DepreciationNon-federally funded historical cost of building Depreciation of historical cost Square footage of building identified with each primary function Improvement Depreciation Non-federally funded historical cost of improvement Depreciation of historical cost FTE Equipment Depreciation Non-federally funded historical cost of equipment Straight line method of calculation all equipment based on standard prescribed useful life Square footage of building identified with each primary function Operations and Maintenance Divide into utility and non-utility categories Square footage of building identified with each primary function Library Special use study UCD Finance Office

7. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview • CALCUALTION OF F&A RATE FOR ADMINISTRATIVE COSTS Administrative Costs Distributed to Primary Functions General Administration Sponsored Program Administration Department Administration Student Services DIVIDED BY Modified Total Direct Costs of Primary Function Total Direct Costs Less Subcontracts Greater than $25,000 Less Capital Equipment Less Center for Laboratory Animal Care Less Patient Care Charges Other Direct Costs EQUALS Administrative Rate Rate for Administration is capped at 26% and is used for both on and off campus sponsored programs UCD Finance Office

8. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview • CALCULATION OF F&A RATE FOR FACILITY COSTS Facility Costs Distributed to Primary Functions Building Depreciation Operations and Maintenance Land Improvement Library Equipment Depreciation Interest Expense DIVIDED BY Modified Total Direct Costs of Primary Function Total Direct Costs Less Center for Laboratory Animal Care Less Capital Equipment Less Patient Care Charges Less Subcontracts Greater than $25,000 Other Direct Costs EQUALS Facility Cost Recovery Rate Used only for on-campus sponsored programs UCD Finance Office

9. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview COMBINATION OF THE F&A RATES Administrative Rate Plus Facility Rate Total F&A Rate for Primary Function UCD Finance Office

10. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview SELECTING AN F&A RATE FOR A SPONSORED PROGRAM For each sponsored program, an F&A rate is selected for application to modified total direct expenditures incurred on a grant or contract. The negotiated rates for the campuses can be viewed at http://www.uchsc.edu/ogc/forms/Facilities%20and%20Administrative%20Costs%20Exhibit%20A-1_FEB_2008.pdf The rates and how they are selected are included in the charts on the pages that follow. UCD Finance Office

11. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview F&A RATE FOR ORGANIZED RESEARCH AND DEVELOPMENT UCD Finance Office

12. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview F&A RATE FOR INSTRUCTION AND TRAINING UCD Finance Office

13. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview F&A RATE FOR OTHER SPONSORED ACTIVITIES UCD Finance Office

14. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview Personnel $1.00 $1.00 $.54 F&A REVENUE FOR PROGRAM WITH 54% RATE TYPE OF DIRECT COST DIRECT COST OF SPONSORED PROJECT MODIFIED TOTAL DIRECT COST Supplies .20 .20 .11 Equipment 1.55 .00 .00 Total $2.75 $1.20 $.65 EXAMPLE OF APPLICATION OF F&A RATE Total Sponsored Program Award: $2.75 Direct plus $.65 F&A = $3.40 Total Program Collection Rate of F&A Revenue: $.65 F&A divided by $2.75 Direct = 23% Collection Rate UCD Finance Office

15. University of Colorado DenverFacilities and Administrative (F&A) Rate Proposal Overview COLLECTION OF F&A REVENUE Direct Expenditure F&A Revenue Direct Sponsored Program Expenditure Facilities and Administrative Costs $-Personnel Compensation $-Campus Administration $-Supplies $-University Administration $-Department Administration $-Facilities Operation and Maintenance EVERY $1.00 IN DIRECT EXPENDITURES YIELDS ABOUT 23¢ IN F&A REVENUE UCD Finance Office