University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview F&A PROPOSAL TIMELINE July 1, 2009July 1, 2010December 31, 2010 July 1, 2011 July 1, 2012 Base year actual costs upon which July 1,2009 F&A rate will be based Prepare ProposalNegotiate F&A Rate New F&A Rate is Applied to new sponsored programs 2/19/20101UCD Finance Office

ESTABLISHING THE COST POOLS ADMINISTRATION COST POOLS  General Administration  Departmental Administration  Sponsored Program Administration  Student Services FACILITY COST POOLS  Building Depreciation  Land Improvements  Equipment Depreciation  Operations and Maintenance  Library REMOVE UNALLOWABLE COSTS  Marketing and Advertising  Official Functions  Bad Debt CENTRAL SERVICES AND ADMINISTRATION OFFICE OF ACADEMIC AFFAIRS OBTAIN TOTAL F&A COSTS  Review all PeopleSoft transactions to identify F&A costs  Obtain space usage information from WebSpace  Obtain depreciation information from F.A.S.T. SCHOOLS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20102UCD Finance Office

FACILITY COST POOLS  Building Depreciation  Land Improvements  Equipment Depreciation  Operations and Maintenance  Library ADMINISTRATIVE COST POOLS  General Administration  Departmental Administration  Sponsored Program Administration  Student Services ALLOCATION BETWEEN THE COST POOLS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20103UCD Finance Office

INSTRUCTION ORGANIZED RESEARCH OTHER SPONSORED ACTIVITY OTHER INSTITUTIONAL ACTIVITY ADMINISTRATIVE COST POOLS  General Administration  Departmental Administration  Sponsored Program Administration  Student Services FACILITY COST POOLS  Building Depreciation  Land Improvements  Equipment Depreciation  Operations and Maintenance  Library COST POOLS ATTRIBUTED TO PRIMARY FUNCTIONS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20104UCD Finance Office

General Administration Modified total direct costs for each primary function as a percent of total modified total direct costs. Departmental Administration Two components - College/School Dean + Academic Departments Direct Charge Equivalent (DCE) Method– no cap Personnel Effort Reports for faculty – 3.6% cap Modified total direct costs by academic department Sponsored Program Administration Sponsored program activity type Student Services Primarily allocated to instruction ALLOCATION OF ADMINISTRATIVE COST POOLS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20105UCD Finance Office

Building Depreciation Non-federally funded historical cost of building Depreciation of historical cost Square footage of building identified with each primary function Improvement Depreciation Non-federally funded historical cost of improvement Depreciation of historical cost FTE Equipment Depreciation Non-federally funded historical cost of equipment Straight line method of calculation all equipment based on standard prescribed useful life Square footage of building identified with each primary function Operations and Maintenance Divide into utility and non-utility categories Square footage of building identified with each primary function Library Special use study ALLOCATION OF FACILITY COST POOLS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20106UCD Finance Office

CALCUALTION OF F&A RATE FOR ADMINISTRATIVE COSTS Administrative Costs Distributed to Primary Functions General AdministrationSponsored Program Administration Department AdministrationStudent Services DIVIDED BY Modified Total Direct Costs of Primary Function Total Direct CostsLess Subcontracts Greater than $25,000 Less Capital EquipmentLess Center for Laboratory Animal Care Less Patient Care ChargesOther Direct Costs EQUALS Administrative Rate Rate for Administration is capped at 26% and is used for both on and off campus sponsored programs University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20107UCD Finance Office

Facility Costs Distributed to Primary Functions Building DepreciationOperations and Maintenance Land Improvement Library Equipment Depreciation Interest Expense DIVIDED BY Modified Total Direct Costs of Primary Function Total Direct CostsLess Center for Laboratory Animal Care Less Capital EquipmentLess Patient Care Charges Less Subcontracts Greater than $25,000 Other Direct Costs EQUALS Facility Cost Recovery Rate Used only for on-campus sponsored programs CALCULATION OF F&A RATE FOR FACILITY COSTS University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20108UCD Finance Office

Administrative Rate Plus Facility Rate Total F&A Rate for Primary Function COMBINATION OF THE F&A RATES University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/20109UCD Finance Office

For each sponsored program, an F&A rate is selected for application to modified total direct expenditures incurred on a grant or contract. The negotiated rates for the campuses can be viewed at sts%20Exhibit%20A-1_FEB_2008.pdf The rates and how they are selected are included in the charts on the pages that follow. SELECTING AN F&A RATE FOR A SPONSORED PROGRAM University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/201010UCD Finance Office

F&A RATE FOR ORGANIZED RESEARCH AND DEVELOPMENT TYPEWHEN USEDFY2011RATE Organized Research And Development Investigation or experimentation aimed at the discovery and interpretation of facts or revision of accepted theory; to set forth or make clear by degrees or in detail an idea, concept, or process; research grants, contracts and other agreements (including carreer awards) with the Federal Government, including Federal flow- through awards. On-Campus 53.0% Off-Campus 26.0% University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/201011UCD Finance Office

F&A RATE FOR INSTRUCTION AND TRAINING TYPEWHEN USEDFY2011 RATE Instruction and Training Teaching or imparting knowledge or understanding by study, instruction or experience; training grants, contracts and other agreements with the Federal Government, including federal flow- through awards. On-Campus 44.0% Off-Campus 26.0% University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview 2/19/201012UCD Finance Office

University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview F&A RATE FOR OTHER SPONSORED ACTIVITIES TYPEWHEN USEDFY2011 RATE Other Sponsored Activities Agreements with the Federal Government, including Federal flow through awards, not categorized as Organized Research and Development or Training and Instruction. All – 26% 2/19/201013UCD Finance Office

University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview EXAMPLE OF APPLICATION OF F&A RATE TYPE OF DIRECT COST DIRECT COST OF SPONSORED PROJECT MODIFIED TOTAL DIRECT COST F&A REVENUE FOR PROGRAM WITH 54% RATE Personnel$1.00 $.54 Supplies Equipment Total$2.75$1.20$.65 Total Sponsored Program Award: $2.75 Direct plus $.65 F&A = $3.40 Total Program Collection Rate of F&A Revenue: $.65 F&A divided by $2.75 Direct = 23% Collection Rate 2/19/201014UCD Finance Office

University of Colorado Denver Facilities and Administrative (F&A) Rate Proposal Overview Direct Sponsored Program ExpenditureFacilities and Administrative Costs $-Personnel Compensation$-Campus Administration $-Supplies$-University Administration $-Department Administration $-Facilities Operation and Maintenance EVERY $1.00 IN DIRECT EXPENDITURES YIELDS ABOUT 23 ¢ IN F&A REVENUE COLLECTION OF F&A REVENUE F&A Revenue 2/19/201015UCD Finance Office Direct Expenditure