Uniform Guidance requires recipients to have a federally negotiated indirect cost rate. If the subrecipient does not have and has never had a federally negotiated indirect cost rate, then the university will allow the subrecipient to proposed budget with the de minimus rate of 10% MTDC. The university will not negotiate an F&A rate with subrecipients; however, it will allow a subrecipient an opportunity to secure a federally negotiated indirect cost rate before a subagreement is issued. Please note that some federal agencies may further limit the rate for certain subawardees.

If the reduced rate is a result of a statutory limitation, then any F&A above the limitation may be considered unallowable and thus not eligible to be considered cost share. If the campus elects to charge a rate less than the negotiated rate, then the difference could be used to meet cost sharing if allowed by the sponsor.

No. However, some sponsors do not allow Tuition Remission costs, so please confirm with sponsor policy and program guidelines.

USDA limits F&A on some NIFA awards to the lesser of 30% of total award (direct plus F&A costs) or the amount that can be recovered using our negotiated rate. For budgeting purposes, the rate of 30% of the total award is equivalent to 42.857% of Total Direct Costs (TDC). In this case, Total Direct Costs (TDC) INCLUDE tuition remission costs. Details for each NIFA program can be found on the NIFA website here. SPA also provides a budget template to assist in determining which rate is appropriate and is available on its website here.

Normally, we do not assess F&A on Fellowships. However, if a sponsor permits recovery of F&A on fellowship funding, the sponsor-approved rate should be included in the budget.

The F&A rate issued at the time of the award to the transferring institution will be honored. Note the National Science Foundation (NSF) requires the use of our negotiated rate unless otherwise mandated.

The F&A rate used in the proposal budget will be honored upon award if the F&A rate changes prior to award. Once awarded, the F&A rate remains fixed for the life (competitive segment) of the award including subsequent supplemental increments of funding (Supplement) on the same award. Continuations and Renewals should use the rate in effect at the time of submission.

The F&A paid by the non-profits, foundations, or charities vary widely. The university is generally accepting of reduced rates on non-profits. If the non-profit does not specify a rate in their proposal solicitation or have a published policy, a rate of 10% Total Direct Costs (TDC) should be applied. This Internal Program Rate is also available for municipalities, counties, and community colleges.

The institutional negotiated rate should be used for foreign sponsors when the funding originates from a foreign government or foreign commercial sponsor.

The applicable institutional negotiated rate should be used on all corporate-sponsored projects unless institutional practice dictates otherwise. An example of institutional practice would be a reduced rate for a project that is primarily for the support of student competitions or projects.