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Facilities & Administrative Rate Agreement

F&A Rate Agreement with FY 2013 Fringe Benefit Rate
F&A Rate Agreement with FY 2012 Fringe Benefit Rate
F&A Rate Agreement with FY 2011 Fringe Benefit Rate
F&A Rate Agreement with FY 2010 Fringe Benefit Rate
F&A Rate Agreement with FY 2009 Fringe Benefit Rate
F&A Rate Agreement with FY 2005 - FY2008  Fringe Benefit Rate 

The stated Purpose of OMB Circular A-21 is to establish principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. The principles are designed to provide that the Federal Government bear its fair share of total costs, determined in accordance with generally accepted accounting principles. The Circular goes on to detail the principles, describe costing methodologies, and define allowable versus unallowable costs. A-21 is the federal government's handbook for proper grant administration.

The Facilities and Administrative Rate Agreement (F&A), often referred to as Indirect Costs, is the process of recovering the portion of costs that support sponsored projects, but are not directly charged to sponsored funds. The administrative portion covers costs of such offices as:

Human Resources
Accounts Payable
General Counsel
Purchasing
Systems Support (part of IRT)
Risk Management
Departmental Administration
Budget
Comptroller
Treasurer
Research
IRB
President
Bursar
The Facilities portion covers costs such as:
Building Depreciation
Equipment Depreciation
Non-Capitalized
Public Safety
Library
Hardware Support (part of IRT)
Facilities Dept (Custodians, Mechanics, Movers, Landscaping, etc)
Utilities (Trash Collection, Electricity, Water, Heat, etc)
Radiation Safety
Interest
Property Insurance
Shuttle Service
Safety and Health
The process of calculating the F&A Rate is to sum these indirect costs and divide by the base. The base is defined as the major functions of an educational institution. A-21 identifies those functions as 1) Instruction and Departmental Research, 2) Organized Research, 3) Other Sponsored Activity, and 4) Other Institutional Activity. So simply put the F&A is calculated by:
Indirect Costs Allocable to Organized Research
Direct Costs in Organized Research Base
=Facilities & Administrative Rate
For questions regarding cost studies, please contact Julie Ford at 215-895-2947, jjf47@drexel.edu or Tim Devine at 215-895-6053, tjd39@drexel.edu .