Understanding Facilities & Administration (F&A)

Understanding Facilities & Administration (F&A) Chris Cook Assistant Provost for Research Management & Operations Office of the Vice Provost for Research & Graduate Studies

Agenda • Basics of the F&A base • How do determine the UD F&A rate? • How does the base impact your rate • What happens when it changes (like now) • How can YOU help? • F&A distribution at UD • Where does it all go? • Allocation to College & Departments • Use of funds not returned • Reporting F&A • Nightly transactions in Projects • Monthly summary to GL Office of the Vice Provost for Research & Graduate Studies

Basics of the F&A base Facilities AND Administration They both count! Office of the Vice Provost for Research & Graduate Studies

How does UD calculate IDC? Creates ‘Cost Pools’ based on type of activity (research on campus, etc.) Office of the Vice Provost for Research & Graduate Studies

Cost Pool Analysis • Total Costs Less • Capital • Exclusions (Financial Aid) • Unallowables (think A-21—food, etc.) • Becomes ‘Adjusted’ Cost Pool • Facilities Costs • Depreciation • Library • Operations & Maintenance • Administrative Costs Office of the Vice Provost for Research & Graduate Studies

Cost Pool Analysis • Performs this calculation 8 times • Research On campus & Off campus • Ag On campus & Off campus • Other Spons Res On campus & Off campus • Instruction On campus & Off campus Office of the Vice Provost for Research & Graduate Studies

How does UD calculate IDC? • MTDC is calculated with a ‘simple equation’ based on complex data Total Facilities allowable Cost Pool “The Numerator” _______________________ = F&A Rate “Adjusted Cost Pool” Base “The Denominator” Office of the Vice Provost for Research & Graduate Studies

But what about Administration? • UD takes the allowed 23.75% Administrative percent rather than doing a calculation Office of the Vice Provost for Research & Graduate Studies

To sum it all up… • Facilities + Administration = Rate 31.73 + 23.75 = 55.48 (Calculated) + (allowed) = Rate • Proposed rate (one example above) • Reviewed and negotiated by cognizant agency (ONR) • Every 3 years typically Office of the Vice Provost for Research & Graduate Studies

The REAL impact How does the base impact your rate? Office of the Vice Provost for Research & Graduate Studies

MTDC base impact on your rate • Each project is related to a • Rate Base (F&A Base) • Funded Percentage (F&A Rate) • Project rate is determined by the award agreement • Amount waived will be the difference of UD MTDC Rate- Project Funded Rate (e.g. 53% - 8%= 45% waived) Office of the Vice Provost for Research & Graduate Studies

Why are there so many rates? • Rates are determined based on location of work (Less overhead per square foot on a farm than in an office)—think cost pool • Rates are negotiated based on sponsor (State has a separate rate identified per location) • Rates can vary for type of project (training grants should require less overhead costs than housing wet labs and facilitating research) Office of the Vice Provost for Research & Graduate Studies

Current Rates (Provisional)

How do you get a ‘special’ F&A Rate? • Award stipulates a specific rate allowance for the project • Identify a specific need for a lower rate; approved by Dean Office of the Vice Provost for Research & Graduate Studies

Changes to the UD rate Office of the Vice Provost for Research & Graduate Studies

What happens when it changes? (like now) • A-21 dictates that • A REDUCTION in F&A rate MUST be adjusted even for existing awards • No obligation to INCREASE F&A rate if changed during life of award • Upon final determination, retroactive changes will be made for reductions • Awards will be made with proposed rate (unless reduction is needed) Office of the Vice Provost for Research & Graduate Studies

F&A Distribution at UD Office of the Vice Provost for Research & Graduate Studies

Breakdown • 1% to Unemployment • 1% to Research Infrastructure • Remaining 98% as follows: • IF related to GRAD stipend —100% to Benchmark —Why? • IF NOT Grad Stipend —63% to Benchmark — 9% to Deans ABCD17S000 —28% to Department ABCD17S000 Office of the Vice Provost for Research & Graduate Studies

The Benchmark • Each College has a benchmark based on a variety of variables Office of the Vice Provost for Research & Graduate Studies

Reporting F&A Data Office of the Vice Provost for Research & Graduate Studies

Characteristics of F&A transactions • Account 195000 • Analysis type of SFA for Grant • Seen in UOD_PROJ_RESOURCE-VW AND UOD_TRANS_DTL(General Ledger) • Account 195000 • Analysis type of CFA when C/S • Analysis type of WFA when waived • Seen only in Proj_resource for reporting values, not charged to Grant/Sponsor or the cost share purpose Office of the Vice Provost for Research & Graduate Studies

GMQ and EZQ • Nightly (Proj_resource) • Each unprocessed (for F&A) transaction is touched by the system • When appropriate, F&A transaction is created • Monthly (UOD_TRANS_DTL) • Each F&A transaction is summed by Purpose/ProjectID combination and sent via Journal to the General Ledger Office of the Vice Provost for Research & Graduate Studies

How do I know if F&A was charged to a particular transaction? • The UD Financials system provides a row by row accounting of F&A in the PROJ_RESOURCE table and can be found in the GMQ_CLOSE_OUT_REPORT query • “ResourceID From” matches the “ResourceID From” of the original transactions Office of the Vice Provost for Research & Graduate Studies

Adjusting F&A Office of the Vice Provost for Research & Graduate Studies

Mistakes happen • Correct the ORIGINAL transaction ONLY • F&A will be corrected and/or charged appropriately based on the EXPENSE • End users DO NOT ADJUST F&A • OVPRGS handles ALL F&A adjustments • 195010 • 195020 Office of the Vice Provost for Research & Graduate Studies

Questions Office of the Vice Provost for Research & Graduate Studies

Understanding Facilities & Administration (F&A)