The Facilities and Administrative Rate (F&A Rate) is the mechanism used to reimburse the University for the infrastructure support costs associated with sponsored research and other sponsored projects.

The F&A rate is essentially an overhead rate, calculated as a percentage of the direct costs of sponsored projects.

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Effective 9/1/07 – 08/31/11Rates:

On Campus Organized Research 44.5% On Campus Instruction 44.5% On Campus Other Sponsored 43.4% Off Campus All Programs 26.0%

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Actual Negotiated

General & Administrative 13.9 % 9.6 %Departmental Administration 13.7 9.6 Sponsored Projects Administration 9.8 6.8 Administrative Subtotal 37.4 % 26.0 %

Building Depreciation 12.2 % 4.0 %Equipment Depreciation 5.6 3.0 Interest 5.0 2.0 Operations & Maintenance 14.9 9.0 Library 0.5 0.5 Facilities Subtotal 38.2 % 18.5 %

On Campus Rate 75.6 % 44.5 %

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F&A is recovered as the sponsor’s funds are expended (and billed) for direct cost items allowed per the project budget.

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6

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

FY06 FY07 FY08 FY09 FY10

$5,201,496

$5,703,051

$6,055,402

$7,486,970

$8,014,002

Important new revenue source - F&A is allocated according to a Memorandum of Understanding (MOU) formally adopted by the VP’s for Research, Business Affairs and Provost.

Cost incurred for common or joint objectives and, therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.

Comply with requirements outlined in OMB Circular A-21, Cost Principles for Educational Institutions

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The purpose of the facilities and administrative (F&A) cost proposal is to determine the cost of doing research, as a starting point for negotiation of the F&A rate with our cognizant agency: Department of Health & Human Services (DHHS)

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Facilities & Administrative Rate calculation is due to the Department of Health and Human Services, Division of Cost Allocation (DHHS-DCA-Dallas Office) by February 28, 2011

The submission will be based on actual costs for the fiscal year ending August 31, 2010 and will be used to set F&A cost rates for prospective years.

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All FY 10 expenditures are aggregated into common cost categories called cost pools.

Those are classified as either facilities or administrative costs.

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UTSA has contracted with Huron Consulting Group to:

Conduct Space Assessment Conduct space study if advantageous to

University Prepare F&A Cost Rate Proposal Assist during the negotiation process with

DHHS-DCA

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In 2006, a modified space study was conducted which included:

Surveying laboratory space of the most highly funded research departments

Allocating remaining institutional space using departmental salary and wage statistics

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Huron will perform a diagnostic assessment for determining the most beneficial cost allocation metric for assignment of space related costs; they will

Evaluate facility cost allocations using salary and wages Evaluate facility cost allocations using full time equivalent

The results will be compared to the last rate proposal and the FY2006 functional space survey results.

Depending on the outcome, Huron in consultation with UTSA may execute a space survey.

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Major Project for Grants and Contracts Financial Services and Accounting Services

Assistance needed from the entire campus: Information Technology Space Management Vice President for Research – Office of Sponsored

Programs Principal Investigators, Deans and Department

Chairs.

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Nov Dec Jan Feb Post-

Phase 2010 2010 2011 2011 Submission

Data Collection

F&A Diagnostic Review & Planning

Space Survey

F&A Rate Development

Proposal Submission

Rate Negotiation

Oct

2010