understanding facilities & administrative (f&a) costs
TRANSCRIPT
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Understanding Facilities & Administrative (F&A)
Costs
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What is F&A?
• Direct Cost: Any cost that can be specifically identified with a particular project, program, or activity or that can be directly assigned to such activities relatively easily and with a high degree of accuracy.
• F&A Costs: Costs for common or joint objectives that cannot be readily identified with an individual project, program, or organizational activity.
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F&A Costs – Otherwise Know As…
• Overhead Costs
• Indirect Costs
• At UCLA – Sub Code 9H
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Modified Total Direct Cost (MTDC)• MTDC component is the base against which the
federally negotiated rates are applied, and is derived by excluding certain costs from the Direct Cost total.
• MTDC exclusions include:– Equipment– Patient Care– Alterations/Renovations– Space Rental– Tuition Remission/Fees– For Non-UC subawards, any amount beyond the first
$25,000 TC of each subaward.– The total cost (TC) of subawards to other UC
campuses
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F&A Fun Facts• Most non-federal F&A rates are based on
Total Direct Cost (TDC), not MTDC.– e.g. Pharm sponsored Clinical Trials (26% TDC),
Non-profit Foundations, etc.
• What is the “Current F&A Base Code”?– How do I find it?
• Summary-By-Sub/Overhead Rate field
– What do the letters mean (i.e. J, B, C)?• Base & Object code Table for Indirect costs• COP/Approp&Financial tab
• Annual Indirect Cost Return– What is it based on?
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UCLA’s Current F&A Rates
• On Campus - 54% MTDC
• Off Campus – 26% MTDC
• Instruction (on campus) – 37% MTDC
• Clinical Trials – 26% TDC
• Federal Teaching – 8% MTDC– NIH Training Grants and Ks
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Why Does F&A Need to be Reconciled?
• Unbudgeted changes can occur:– PI spent the $ on an item that is excluded from F&A, but
was not originally budgeted. EXAMPLE: Unbudgeted equipment. See Scenario 1
– PI did NOT spend the $ allocated to an excluded item, but rather, spent it on an item NOT excluded from F&A. Example: Budgeted equipment. See Scenario 2
– F&A rate changed during the project period, but may not have been changed in the UCLA financial system. Use F&A Reconciliation Tool
– PI moved from on-campus to off-campus space, or vice-versa. Use F&A Reconciliation Tool
– Item was not correctly Object Coded in the UCLA financial system. Use F&A Reconciliation Tool
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F&A Tools
• Two F&A tools available:1) FPM/QDB F&A Reconciliation Tool
• This report is also run automatically in the Smart Closeout Tool
2) 9H Reconciliation Adjustment note located at the bottom of the FPM/QDB Summary By Sub Report
• Run both reports frequently throughout the life of the award.
• Do NOT assume the reports are correct. Do some research to determine WHY, before making any adjustments.