 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. 2

 Effective 9/1/07 – 08/31/11  Rates:  On Campus Organized Research44.5%  On Campus Instruction44.5%  On Campus Other Sponsored 43.4%  Off Campus All Programs26.0% 3

Current F&A Rate-Actual vs. Negotiated ActualNegotiated General & Administrative 13.9 % 9.6 % Departmental Administration Sponsored Projects Administration Administrative Subtotal 37.4 % 26.0 % Building Depreciation 12.2 % 4.0 % Equipment Depreciation Interest Operations & Maintenance Library0.5 Facilities Subtotal 38.2 % 18.5 % On Campus Rate 75.6 % 44.5 % 4

 F&A is recovered as the sponsor’s funds are expended (and billed) for direct cost items allowed per the project budget. 5

6 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 7

 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) 8

 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. 9

 All FY 10 expenditures are aggregated into common cost categories called cost pools.  Those are classified as either facilities or administrative costs. 10

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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 12

 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 13

 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. 14

 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. 15

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