New Budgeting Guidelines for Fringe and F&A

MARCH 2008 - GSS has received some new advice from the Office of Sponsored Programs regarding the budgeting of Facilities & Administrative costs (F&A) on grant proposals.

Previously, we have calculated F&A on multi-year grant project budgets by using the applicable F&A rate for the first year of the project for all years of the project.  However, our current negotiated rate agreement has rates going out to FY2010.  We have been advised to use the F&A rate that corresponds to each year of a multi-year project in our budgets from now on.  

For example, if we were budgeting a 4-year on-campus research project starting in FY2008,  the applicable F&A rates would be:

FY2008:  47.5%

FY2009: 48%

FY2010:  48.5%

After 2010 (until a new F&A rate is approved): 48.5%

Please keep in mind that fringe benefits rates must also be calculated according to the negotiated rate agreement.  When budgeting, you may estimate to account for increases in fringe rate for subsequent years.  Just remember, once a rate has been approved for the current funding year, that is the rate that will actually be charged, regardless of what has been budgeted on a particular grant project.   

If you have questions or need further clarification, please contact your GSS grants coordinator.  

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