Facilities and Administrative Cost Negotiation
The School of Medicine is required by the federal government to periodically prepare and file a Facilities and Administrative (F &A) cost proposal. This proposal is used to negotiate F & A rates to be assessed to most federal grants and contracts awarded to the SOM.
We are pleased to announce that we have successfully completed our negotiation with the federal government based on our fiscal 2003 financial data and, now have new rates for years 2005 through 2009. The applicable rates are as follows:
||67% (Only for newly awarded grants in fiscal 2005)
As indicated above, the rate for fiscal year 2005 drops to 67%, and returns to 69% for fiscal year 2006. This slight reduction has minimal impact on the SOM finances, and will enable some re-budgeting to direct cost lines for grants in this category. This only effects new and competing grants awarded this year, and only for the active months in 2005; the rate then returns to 69% in September 2005. For example, if you receive a new grant with a start date of June 1, 2005, the grant will be assessed 67% for June, July and August, and then at 69% from September. We will be working out the mechanics of this change, and will advise shortly of the impact on your individual grants. Funds made available by this reduction in the rate will enable you to re-budget to direct cost categories.
Along with the F&A rate, we finalized the fringe benefit rate for grants effective September 2005. As previously announced, this was anticipated to drop, and it did. We have established a rate of 30.4%, down from 33%.
Once finalized adjustments are available, we will advise you of what they are. In the meantime, should you have any questions, please feel free to call me at extension 36671.
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