1. What’s MTDC Mean To Me? Alexia Lewis Office of Research & Sponsored Programs September, 2006

2. The Facts Costs of sponsored programs Costs of sponsored programs Direct Costs Direct Costs Can be identified specifically with a particular project relatively easily with a high degree of accuracy Can be identified specifically with a particular project relatively easily with a high degree of accuracy F&A, Indirect Costs, Overhead F&A, Indirect Costs, Overhead Incurred for common or joint objectives, cannot be specifically attributed to an individual project Incurred for common or joint objectives, cannot be specifically attributed to an individual project

3. New F&A Rate Agreement What Changes? DHHS rate agreement approved DHHS rate agreement approved Was SWF base Was SWF base Salaries, Wages, Fringes Salaries, Wages, Fringes Now MTDC base Now MTDC base Modified Total Direct Costs Modified Total Direct Costs Changes F&A Calculation Changes F&A Calculation F&A = Base x Rate F&A = Base x Rate Rate: Rate: 43.5% On Campus 43.5% On Campus 26% Off Campus 26% Off Campus

4. New F&A Rate Agreement What Changes? CAS now applies CAS now applies Cost Accounting Standards Cost Accounting Standards Administrative costs included in F&A rate negotiation Administrative costs included in F&A rate negotiation Now recovered in F&A Now recovered in F&A Result: Administrative costs now in F&A portion of budget instead of direct cost portion of budget Result: Administrative costs now in F&A portion of budget instead of direct cost portion of budget

5. F&A Calculation MTDC - key word is Modified MTDC - key word is Modified Start with TDC (total direct costs) Start with TDC (total direct costs) Modify by subtracting Modify by subtracting Equipment Equipment Tuition Tuition Patient Care Patient Care Lease Lease All but the first $25,000 of each subcontract All but the first $25,000 of each subcontract Result is the MTDC Base Result is the MTDC Base Apply the F&A rate to this base Apply the F&A rate to this base

6. Example Salary & Fringe$60,000 Consultant$5,000 Subcontract$30,000 Equipment$3,000 Travel$3,000 Tuition$5,000 Supplies$14,000 Direct Costs$120,000 Direct$120,000 Less Equipment($3,000) Less Tuition($5,000) Less Subcontract($30,000) Sub - Plus 1st $25K$25,000 MTDC$107,000 F&A @ 43.5%$46,545 Direct Costs$120,000 F&A$46,545 Total Costs$166,545 1 st – Build Budget 2 nd – Figure the Base & Apply the Rate 3 rd – Add Direct + F&A Costs

7. How MTDC Affects CAS Due to change to MTDC base Due to change to MTDC base Costs that UNF was charging as direct costs are now charged as indirect costs Costs that UNF was charging as direct costs are now charged as indirect costs Called CAS items or expenditures Called CAS items or expenditures What’s that mean? What’s that mean? No longer can include the following as line items on budgets No longer can include the following as line items on budgets

8. What are CAS expenditures? Administrative or Clerical Salaries Administrative or Clerical Salaries Technical salaries can be directly charged Technical salaries can be directly charged Postage Postage Overnight/Shipping costs can be directly charged Overnight/Shipping costs can be directly charged Local Telephone Local Telephone Long distance can be directly charged Long distance can be directly charged

9. What are CAS expenditures? Office Supplies Office Supplies Research/Lab supplies can be directly charged Research/Lab supplies can be directly charged Data Processing or Computer Supplies Data Processing or Computer Supplies General Purpose Software General Purpose Software Technical software can be directly charged Technical software can be directly charged Memberships / Subscriptions Memberships / Subscriptions

10. How do these get paid for? So… how do PI’s pay for these real and necessary costs? So… how do PI’s pay for these real and necessary costs? Use of F&A return to cover administrative costs Use of F&A return to cover administrative costs New ORSP positions New ORSP positions Department resources Department resources PI’s IPD accounts PI’s IPD accounts

11. CAS Exemptions Policy In specific cases, it may be allowable to directly charge CAS items In specific cases, it may be allowable to directly charge CAS items UNF Policy UNF Policy Full federal F&A rate Full federal F&A rate May or may not be allowable to direct charge CAS items May or may not be allowable to direct charge CAS items CAS exemption form needed CAS exemption form needed Less than full federal F&A rate Less than full federal F&A rate Allowable to direct charge CAS items Allowable to direct charge CAS items CAS exemption form needed CAS exemption form needed

12. CAS Exemptions Policy Policy Bottom Line Policy Bottom Line No CAS expenditures allowed without approved form on file for each project No CAS expenditures allowed without approved form on file for each project Policy Based On Policy Based On Consistency (OMB Circular A-21) Consistency (OMB Circular A-21) Avoiding disallowed costs / audit findings & fines Avoiding disallowed costs / audit findings & fines

13. CAS Exemption Procedure Procedure: Procedure: CAS Exemption Form completed at proposal stage CAS Exemption Form completed at proposal stage ORSP provides ORSP provides PI completes and routes for approval PI completes and routes for approval Dr. Ebong reviews Dr. Ebong reviews Dawn reviews only in Dr. Ebong’s absence Dawn reviews only in Dr. Ebong’s absence No one else authorized to make decision No one else authorized to make decision

14. Is a CAS Exemption Reasonable to request? ORSP role is to provide guidance ORSP role is to provide guidance Direct or indirect? Direct or indirect? Is it specific to this project? Is it specific to this project? Is it necessary to perform the research? Is it necessary to perform the research? How does the university consistently treat the cost? How does the university consistently treat the cost?

15. CAS Exemption Form See last page of hand-out for CAS Exemption Form See last page of hand-out for CAS Exemption Form