See below for answers to common questions on facilities and administrative costs.
What are the differences between direct costs and F and A costs?
Direct costs are funds used to pay for the cost of conducting the research, including:
- Salaries and benefits
- Supplies, equipment, travel and contractual services
- Patient-care costs on clinical studies
F and A costs are used to maintain Children's infrastructure, including:
- Building rents and depreciation
- Research support services (centralized administrative costs)
- Research center administrative and discretionary support
- Recruitment commitments
What are the current F and A rates?
Office of Research Finance
How are a project's F and A costs calculated?
The methods for determining F and A are:
- Calculate the grant's Total Direct Costs (TDC), which equal the sum of all direct costs, including salaries, supplies, equipment, etc.
- Calculate exemptions based on sponsor guidelines. NIH exclusions typically include equipment, patient-care costs, tuition and a portion of subcontract agreements (exceeding $25,000 for each subcontract).
- Deduct exemptions from TDC to determine modified total direct costs (MTDC).
- Multiply the MTDC by the current F and A rate to determine F and A costs.
- Add the TDC to F and A costs to calculate Total Project Costs.
- TDC - Exemptions = MTDC
- MTDC x F and A Rate = F and A Costs
- TDC + F and A Costs = Total Project Costs
What if I am applying for a non-federal grant that pays less than the full F and A rate?
Contact your center business manager to discuss the specifics of your application and obtain approval to before you apply. Include the approval, and any other relevant information, with the OSR-10 form submitted to the Office of Sponsored Research.