orsp

Ohio University F&A Agreement and Distribution Models 

Facilities & Administrative Cost Rate Agreement

Ohio University recovers Facilities and Administrative (F&A) costs (formerly known as indirect costs) through the expenditure of funds in restricted accounts which support external research and creative activity. Proposals for such funding must budget the appropriate F&A rate if these costs are allowed by the sponsor. In limited instances, an Institutional waiver of F&A may be requested from the Assistant Vice President for Research, Shane Gilkey, or from the Vice President for Research, Dr. Joseph Shields.

The current F&A Rate Agreement was negotiated with the Department of Health and Human Services on January 13, 2012. The following rates remain in effect until June 30, 2015:

F&A Rates

Research: 48.5% (effective July 1, 2012)
Instruction: 49.0%
Other Sponsored Activity: 39.0%
Off-campus: 26.0%**

**Note: To determine whether a project qualifies for the off-campus rate, please refer to the off-campus guidelines.

Applying F&A Rates

Facilities and Administrative cost rates are applied to a modified total direct cost (MTDC) base. The rates are applicable to all direct costs with the exception of the following:

  • Equipment items with a threshold of $5000 or greater and a life expectancy of one year or more; Nonexpendable items valued at less than $5000 or with less than a one year life expectancy should be budgeted as materials and supplies.
  • Participant support
  • Tuition
  • F&A rate is only applied to the first $25,000 of each subcontract or sub-award.

For questions regarding Ohio University's negotiated F&A rate, please contact your assigned pre- or post-award manager. Click here to access a list of departmental assignments.


Research Incentive Distribution Models

Funded project budgets that include full F&A costs may restribute a portion of the recovered F&A costs to the investigator. Ohio University has policies (19.053 and 19.056) which direct distribution of a portion of the recovered F&A costs back to the principal investigator, center, department, and college associated with the funded proposal. These funds are deposited into Research Incentive (RI) accounts, specific to the PI/PD, center, department, and college based on the distribution models described below. Allocation of research incentive funds are made available on a monthly basis during the project period.

RI funds are managed directly by the named account holder and are subject to the policies and procedures that govern expenditures in the University financial management system. The use of RI funds is restricted to the enhancement of activities related to the funded project and/or to assist in the development of new projects. Funds may be used for, but not limited to, the costs of writing new proposals, travel associated with the development of proposals for external funding, pilot studies for new projects, equipment, student support, and professional development. Funds unspent at the end of the fiscal year may be appropriated and made available in the subsequent fiscal year.

Submission through an Ohio University Board of Trustees approved Center or Institute or through a department or school impacts which distribution model may be employed. In addition, pre-approved modification of the below models may occur if granted by the Assistant Vice President for Research, Shane Gilkey, or by the Interim Vice President for Research, Dr. Joseph Shields. The approved reduction agreement will be reflected in the distribution formula presented in the electronic award letter notification.

Department Distribution Model:

For awards made to Ohio University (which include F&A costs as a budget line) that declare the project is being administered (at time of submission through the electronic Transmittal Form) through an academic DEPARTMENT of the institution, 100% of the revenues will be distributed as follows:

100% - College
           18% - Principal Investigator
           7% - Department

To calculate (using $100,000 as the total F&A amount), apply the percentages above to calculate recovery amounts as labeled: Example: To find the PI portion: Take $100,000 x 0.18 = $18,000.

Center or Institute Distribution Model:

For awards made to Ohio University (which include F&A costs as a budget line) that declare the project is being administered (at time of submission through the electronic Transmittal Form) through a Board of Trustees approved CENTER or INSTITUTE, 100% of the revenues will be distributed as follows:

100% - College
           14% - Principal Investigator
           7% - Department
           30% - Center

To calculate (using $100,000 as the total F&A amount), apply the percentages above to calculate recovery amounts as labeled: Example: To find the PI portion: Take $100,000 x 0.14 = $14,000.

For questions regarding the distribution of recovered F&A costs, please contact Jenny Whan, Grants & Contracts Specialist, at 740.593.2859 or whan@ohio.edu.