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University Negotiates New Facilities & Administrative (F&A) Rates with Federal Auditors
Sponsored Projects Administration (SPA) is pleased to announce the successful negotiation of a new four-year F&A (“Indirect Cost”) Rate Agreement, dated October 30, 2007. The new rates will improve the reimbursement the University receives for its F&A costs incurred during the performance of work on sponsored agreements by approximately $3M per year.
The changes in individual rates are shown in the chart below. All rates are effective from FY 2008 through FY 2011, and will also continue to be used after the end of FY 2011 until a new rate agreement has been established.
Award Type |
Former Rate
(MTDC base) |
New Rate
(MTDC base) |
On-Campus Research |
49.5% |
51.0% |
On-Campus Public Service (also called “Other Sponsored Activities”) |
31.0% |
32.0% |
On-Campus Instruction |
50% |
50%* |
Hormel Institute |
51.0% |
52.5% |
Department of Defense Contracts |
52.0% |
57.0% |
Off-Campus Projects (All types) |
26.0% |
26.0% |
Principal Investigators (PIs) and their staff are encouraged to begin using these rates in new and competitive renewal proposals immediately. Beginning January 1, 2008, competitive proposals submitted to SPA for review must use the new rates. For detailed implementation guidance, including information on the handling of F&A on existing awards and previously submitted proposals, please go to http://www.ospa.umn.edu/forms/rates/F_and_A_rates.html.
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