Current Facilities & Administrative (F&A) Distribution Faculty Senate January 19, 2011 Jim Rankin

VPRED Update Website live this month ◦ Access from UA front page or or Electronic Research Administration ◦ Currently using InfoEd ◦ Going to Kuali Coeus ◦ Initial stand-up by Summer; all colleges by end of year Research Compliance separated from RSSP Offices moving to ADMIN in March

F&A

Facilities & Administrative (F&A) Federal government reimburses the university for expenses associated with conducting research The F&A rate is applied to many of the direct costs associated with a research grant or contract (Modified Total Direct Cost) F&A rate applied to non-federal awards for consistency F&A reimbursement funds are often used by universities to incentivize research (RIF)

F&A Rate Process Current on-campus research F&A rate is 44% ◦ Up from 42% ◦ Requested 46% Negotiated every 3 to 4 years UA negotiates with HHS in Dallas Current F&A rate active from July 1, 2009, through June 30, 2013 Based on data collected from FY08

F&A Rate Categories - Facilities Building Depreciation: Buildings and land supported by non-federal funds that can be attributed to research. Equipment Depreciation: Equipment supported by non- federal funds that can be attributed to research. Interest Expense: Interest on debt-financed research facilities and equipment. Plant Operations and Maintenance: The administration, operation, maintenance, and protection of the university’s physical plant. These include utility, maintenance, and custodial costs; ordinary repairs; the care of grounds and buildings; the physical plant office; building renovations and space changes; and campus security. Library: Operation of the university library, including books and library materials and library administration.

F&A Rate Categories - Administrative General and Administrative Expenses: Executive and administrative offices, as well as other general expenses not related solely to any major function. Examples include the Offices of the Chancellor, Provost, and Vice Chancellors. Departmental Administration: Costs for administrative and supporting services in departments, interdepartmental laboratories, or centers, and provide a benefit to the research projects in these units. Includes salaries for Department Heads and Academic Deans. Sponsored Programs Administration: Includes costs incurred to administer sponsored projects such as RSSP and Research Accounting.

Modified Total Direct Costs (MTDC) Includes: ◦ all salaries and wages, fringe benefits, materials, supplies, services, travel and the first $ of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Excludes: ◦ equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each grant and subcontract in excess of $

Current F&A Rates ActivityRate Organized Research44% Instruction47% Other Sponsored Activity37% Ag. Experiment Station44% Ark. Archeological Survey Inst.40% Coop. Extension Service29% Campus Criminal Justice Inst.29% Clinton School36% Off Campus Programs25%

F&A Distribution Policy (Research Incentive Funds –RIF) ◦ Units – 40%  Except College of Engineering – 80%  Depts and PIs – by agreement in college ◦ VPRED/Grad School – 10% ◦ Provost – 8% ◦ General Fund – 42%  Except for awards to College of Engineering ◦ Exceptions  Arkansas Bioscience Funds – 100% to debt service on Chemistry Building renovation.

FY10 F&A Distribution (RIF) CategoryShare of TotalAmount Distributed FY10 Recovered Indirect Costs$7,649,686 Academic Units$3,649, % VPRED$ 90, % Grad School$ 610, % Academic Affairs$ 582, % Research Facility Debt Service (Chemistry Bldg) $1,097, % General Funds$1,619, %

QUESTIONS?