Facilities and Administrative Cost Rates

The federal government's Office of Management and Budget (OMB) has changed its terminology regarding indirect costs. Indirect costs are now called facilities and administrative (F&A) costs, reflecting the method by which the rate is calculated.

Federally negotiated F&A costs are charged against modified total direct costs (MTDC). Modified total direct costs exclude equipment, capital expenditures, charges for patient care and tuition remission, rental costs of off-site facilites, scholarships and fellowships as well as the portion of each subgrant/subcontract in excess of $25,000. (It is UNL's practice to exclude the total amount of any subgrant/subcontract to its sister institutions - UNK, UNO & UNMC.)

At UNL, equipment is defined as an item having an acquisition cost of $5000 or more and a useful life of over one year. Please note that rates other than our Federally-negotiated rates are generally charged against total direct costs.

Rate Agreement 2007

Date of Rate Agreement: February 7, 2007

	Effective Date
Organized Research
(a)On Campus 47.5% MTDC	07/01/06 - 06/30/09**
(b) Off Campus 26.0% MTDC	07/01/06 - 06/30/09
Agricultural Research Division
(a) On Campus 44.9% MTDC	07/01/06 - 06/30/09
(b) Off Campus 26.0% MTDC	07/01/06 - 06/30/09
Instruction
(a) On Campus 50.0% MTDC	07/01/06 - 06/30/09
(b) Off Campus 26.0% MTDC	07/01/06 - 06/30/09
Co-op Extension Service
(a) On Campus 39.5% MTDC	07/01/06 - 06/30/09
(b) Off Campus 26.0% MTDC	07/01/06 - 06/30/09
Other Sponsored Activities (Public Service and Administration)
(a) On Campus 34.5% MTDC	07/01/06 - 06/30/09
(b) Off Campus 26.0% MTDC	07/01/06 - 06/30/09

**Rates remain in effect provisionally beginning 7/19/09 and until a new agreement is negotiated.

The off-campus rate should be applied to activities performed in facilities not owned by the institution and/or to which rent is directly allocated to the project.

UNL's policy is to request federally negotiated rates on all proposals. When F&A costs are limited or not allowed by the sponsor, the balance not allowed should be shown as cost share on UNL's routing form (Request for Proposal Approval and Submission) and in the proposal when appropriate.

Waivers of F&A costs are not allowed. Principal Investigators working with sponsors that request less than fully-negotiated rates on F&A costs should submit a request well in advance of any due dates. Any request for a reduction must be thoroughly justified and signed by the cognizant department chair and dean prior to submission to the Office of Sponsored Programs for consideration. The Vice Chancellor for Research makes the final determination.