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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 December 8, 2011, with our federal cognizant agency (DHHS, Division of Cost Allocation). The new rates negotiated for Organized Research and Public Service/Other Sponsored Activities will improve the reimbursement the University receives for its F&A costs incurred during the performance of work on sponsored agreements. David Hagen, SPA’s Associate Director responsible for F&A Cost Analysis, conservatively estimates these new rates will yield an incremental $1.7 - $2 million per year, or $6.8 - $8 million in additional F&A recovered over the life of the agreement.
The changes in individual rates are shown in the chart below. All rates are effective from FY 2012 through FY 2015, and will continue to be used after the end of FY 2015 until a new rate agreement is established.
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Award Type
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Former Rate (%) (MTDC base)
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New Rate (%) (MTDC base)
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New Rate (%) (TDC base) |
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Organized Research (on campus)
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51.0 |
52.0 |
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Public Service/Other Sponsored Activities (on campus)
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32.0 |
33.0 |
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Instruction (on campus)
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50.0 |
50.0 |
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Hormel Institute (on campus)
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52.5 |
52.5 |
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Department of Defense Contracts (on campus)
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57.0 |
57.0 |
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Off-Campus Projects (all types)
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26.0 |
26.0 |
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| Industry-Funded Clinical Trials |
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|
26.0 |
Faculty and staff are encouraged to begin using these rates in new and competitive renewal proposals immediately. Beginning January 15, 2012, new or competitive renewal proposals 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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