Working with F&A at UVA. Caroline Beeman

Transcription

1 Caroline Beeman

2 By the end of this session you should be able to solve this problem: Your PI is writing a proposal for an $800,000 grant. This is the total amount the sponsor is willing to pay for both direct and F&A costs all together. This will be an Organized Research activity. The F&A rate for Organized Research is currently 50% and will be 50% for the life of the grant. Among the costs the PI expects to spend are: Tuition remission = $6,000; Capital Equipment = $190,000; Travel = $2,000; Subcontracts = $29,000; Supplies = $3,000. You work in a SoM clinical department that returns the department share of F&A to the PI. The PI wants to know how much F&A he will get. 2

3 Calculation of the Facilities & Administrative Cost Rate (aka = Indirect Cost Rate) F&A COSTS Building Depreciation Equipment Depreciation Interest on Debt Operations & Maintenance Library Support General Administration Departmental Administration Sponsored Project Administration DIRECT COSTS Research Salaries & Fringes Consultant Services Travel Technical Services Research Supplies Subcontracts up to $25,000 Committed Cost Sharing $88,160,000 F&A Costs Direct Costs $152,000, = 58% 3

4 The Direct Cost Bases Bases represent an institution s direct cost activities: Instruction and Departmental Research (IDR) Instruction Sponsored Instruction Departmental (non-sponsored) Research Organized Research (OR) Sponsored Research and Research Training University-sponsored Research Cost sharing Other Sponsored Activities (OSA) Other Institutional Activities (OIA) 4

5 The Direct Cost Bases MTDC usually includes Salaries and wages & associated fringe benefits Materials and supplies Services Travel Sub-grants and subcontracts up to the first $25,000 MTDC excludes Equipment (capital equipment only) Patient care Tuition remission Scholarships and fellowships Sub-grant and subcontract costs over $25,000 Space rental costs 5

6 How is the F & A Calculation Done? Start with Financial Statements Operating Expenses Adjustments Unallowable costs, Interest, etc. Map to OMB Circular A-21 Pools and Bases Allocate Pools Summarize Pool Allocations to Each Base Calculate Rates 6

7 Organized Research F&A Rate (as Calculated) 07/01/09-06/30/10 RESEARCH F&A COMPONENTS Allocated $ / Base = Rate FACILITIES: Building Depreciation $ 8.7M / $151.7M = 5.8% Equipment Depreciation $ 6.6M / $151.7M = 4.3% Interest $ 4.1M / $151.7M = 2.7% Operations & Maintenance $ 24.0M / $151.7M = 15.8% Utilities Cost Adjustment n/a 1.3% Libraries n/a 2.5% Total FACILITIES $ 43.4M 32.4% ADMINISTRATION: * General & Administrative $ 9.3M / $157.8M = 5.9% Departmental Administration $ 30.3M / $157.8M = 19.2% Sponsored Projects Admin $ 8.7M / $157.8M = 5.5% Total ADMINISTRATION $ 48.3M 30.6% * Capped by the government. TOTAL $ 91.7M 63% 7

8 UVA s Current F&A Rates Organized Other Sponsored Research Instruction Activity On Off On Off On Off Bldg Depr n Equip Depr n Interest O&M Utility Cost Adj Library Admin Comp Total Rate

9 F&A Distribution Percentage Allocations For FY Allocation Percentage State Admin (use the one that applies to your Org) UVA Wise, SW Va Center, Ctr for Politics 30% All Others 27.8% Institutional Allocations (use all three of these)* VPR 10.9% ITS 2.28% VPF/CFO 3.7% Library Allocation (use the one that applies to your Org)* Alderman Library 2.89% Health Sciences Library 2.89% Reserve for Capital Outlay (use the one that applies to your Org)** Academic 16.6% School of Medicine 16.6% School of Nursing 16.6% UVA Wise 20% Schools (Deans & Departments - use the ones that apply to your Org) Architecture 35.83% Arts & Sciences Dean 19.05% Arts & Sciences Departments 16.78% Curry Dean (from Departments) % Curry Dean (from Centers) % Curry Departments 3.583% Curry Centers 5.374% Engineering Dean 21.23% Engineering O&M 5.5% Engineering Departments 9.1% Nursing 35.83% SOM Dean (from Non-Clinical Departments) % SOM - Non-clinical Departments 8.605% SOM Dean (from Clinical Departments) 6.425% SOM - Clinical Departments % UVA Wise 50% Center for Politics 70% SW Va Center 70% Other Schools & Orgs 35.83% Working with F&A at UVA To determine where the F&A from your grants is allocated add: 1) the State Admin percentage that applies to you 2) all the Insitutional Allocations* 3) one of the library allocations* 4) the Capital Outlay percentage that applies to you** 5) the Schools percentage(s) that applies to you 9

10 Not subject to F&A $10, x 51.5% = $5,

11 $13, x 54% = $7, Working with F&A at UVA 11

12 IS.FM- Detail Expenditures by Project Working with F&A at UVA 12

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14 Award Installments 17

15 Revenue vs. Installment vs. Funding vs. Expenditure Report Revenue Proj Carry Out Org:41120 MD-PSCH Psychiatry and NB Sciences Revenue Project : MD-PSCH F&A Period : 'Aug-09' Default to prior period : 'N' MBU:MD-School of Medicine Revenue Project : MD-PSCH F&A Revenue Project Manager:Woodson, Teresa C Dept:MD-PSCH Psychiatric Medicine Revenue Proj Carry Out Org:41120 MD-PSCH Psychiatry and NB Sciences Revenue To Date -3,411, Internal Investment Program Award Project Installments Budget Project-todate Expenses Commitments Funding Budget Balance Available Installment Balance Available FA00059 MD-PSCH F&A 3,684, ,684, MD-PSCH F&A 3,274, ,417, , ,275, , ,781, MD-PSCH CIT Intervn MD-PSCH- R&D Comp Res 3, , , MD-PSCH Mech Of ADHD 1, , , , MD-PSCH Ind F&A Psychiatry 48, , , , , MD- PSCHGra Tuition, ,684, ,327, ,441, , ,328, , , <3,411,988.07> 3,684, ,327, ,441, , ,328, , ,

16 Applying the F&A Rate Problem 1 F&A Rate = 40% Research project budget for direct costs = $125,000 Item of equipment included in direct costs = $25,000 (only item excluded from the F&A base) How much is F&A? What is total cost of the project? MTDC = Total direct costs - exclusions MTDC = $125,000 - $25,000 = $100,000 F&A = MTDC x F&A rate F&A = $100,000 x 40% = $40,000 Total cost = Total direct costs + F&A costs Total cost = $125,000 + $40,000 = $165,000 19

17 Applying the F&A Rate Problem 2 F&A Rate = 58% Research project budget for direct costs = $250,000 Subcontract costs = $75,000 What is total cost of the project? MTDC = Total direct costs - exclusions MTDC = $250,000 - exclusions MTDC = $250,000 - ($75,000 - $25,000) MTDC = $250,000 - $50,000 = $200,000 F&A = MTDC x F&A rate F&A = $200,000 x 58% = $116,000 Total cost = Total direct costs + F&A costs Total cost = $250,000 + $116,000 = $366,000 20

18 Applying the F&A Rate Problem 3 F&A Rate = 50% Research project total award from sponsor = $500,000 Subcontract costs = $150,000 How much is MTDC? How much is F&A? Total award = total direct + total F&A Total award = (MTDC + exclusions) + (MTDC x F&A rate) $500,000 = (MTDC + $125,000) + (MTDC x 50%) $500,000 - $125,000 = MTDC + (MTDC x 0.50) = (MTDC x 1)+(MTDC x 0.5) $375,000 = MTDC x (1.50) MTDC = $375,000 / 1.50 = $250,000 F&A = MTDC x F&A rate = $250,000 x 50% = $125,000 21

19 How about the problem from the beginning? Your PI is writing a proposal for an $800,000 grant. This is the total amount the sponsor is willing to pay for both direct and F&A costs all together. This will be an Organized Research activity. The F&A rate for Organized Research is currently 50% and will be 50% for the life of the grant. Among the costs the PI expects to spend are: Tuition remission = $6,000; Capital Equipment = $190,000; Travel = $2,000; Subcontracts = $29,000; Supplies = $3,000. You work in a SoM clinical department that returns the department share of F&A to the PI. The PI wants to know how much F&A he will get. Working with F&A at UVA 22

20 The Solution Total grant available = $800,000 How much F&A does PI get? Exclusions from MTDC: Tuition remission = $6,000; Subcontracts = $29,000 - $25,000 = $4,000; Equipment = $190,000 Total Exclusions = $200,000 Total available = total direct + total F&A Total available = (MTDC + exclusions) + (MTDC x F&A rate) $800,000 = (MTDC + $200,000) + (MTDC x 50%) $800,000 - $200,000 = MTDC + (MTDC x 0.50) $600,000 = MTDC x (1.50) MTDC = $600,000 / 1.50 = $400,000 F&A = MTDC x F&A rate = $400,000 x 50% = $200,000 PI (dept share) = $200,000 x % = $58,

21 Information and Contacts Caroline Beeman or John Wallace-Smith