What You Should Know
The facilities and administrative rate (F&A rate), frequently referred to as the indirect cost rate, is the federally-approved percentage applied to sponsored projects in order to recover the allowable overhead costs associated with conducting organized research.
According to Office of Management and Budget Circular A-21, F&A costs are “costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.”
Under Princeton University’s current F&A rate agreement, our F&A rate is 61.0% for FY2013 and FY2014, and increases to 62% for FY2015, FY2016, and FY2017. This predetermined rate is based on a study of actual costs of on-campus, organized research in FY2010-2011. See our rate agreement negotiated with the federal government.
The federal reimbursement for administrative costs is capped at 26%. The total rate submitted for FY2011was 68.5%, vs. the final negotiated predetermined rates of 61% and 62%. The off campus research rate is 26%. See our Off-Campus Facilities and Administrative (F&A) Rate policy.
Facilities & Administrative Rate Cost Components
|Plant Operation & Maintenance||11.4%||12.4%|
|Subtotal : Facilities||35.0%||36.0%|
|General Administration (G&A)||8.2%||8.2%|
|Departmental Administration (DA)||11.5%||11.5%|
|Sponsored Projects Administration (SPA)||3.8%||3.8%|
|Faculty Administrative Effort||2.5%||2.5%|
|Subtotal: Administrative (Federal Cap of 26%)||26.0%||26.0%|
|Total F&A Rate Charged||61.0%||62.0%|
- Plant operations and maintenance includes costs of building maintenance, utilities, grounds, building services, and public safety.
- Interest expense reflects the allocable portion of interest on tax-exempt debt.
- The G&A cost pool includes the President, Provost, Treasurer's Office, Executive Vice President, General Counsel, and other business functions.
- DA consists of the administrative costs incurred in academic units.
- SPA includes ORPA, Technology Licensing, Sponsored Research Accounting, and the Dean for Research.
- All the administrative cost pools and the library include allocations of building and equipment depreciation, plant operations and maintenance, and interest expense.
- The library, DA, and SPA pools also include an allocation of G&A.
Historical Facilities & Administrative (Indirect Cost) Rates
The F&A rates reflect the negotiated rates with the Department of Health and Human Services.
|Fiscal Years||On Campus||Off Campus|
|FY 2015 - FY 2017||62.0||26.0|
|FY 2009 - FY 2012||61.0||26.0|
|FY 2005 - FY 2008||58.0||26.0|