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 62.0% for FY2015 to FY2021. This predetermined rate is based on a study of actual costs of on-campus, organized research in FY2010-2011. See our main campus rate agreement.
The federal reimbursement for administrative costs is capped at 26%. The total rate submitted for FY2011 was 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
FY2013-2014 | FY2015-2021 | |
Facilities | ||
Building Depreciation | 9.6% | 9.6% |
Equipment Depreciation | 2.0% | 2.0% |
Plant Operation & Maintenance | 11.4% | 12.4% |
Interest Expense | 7.5% | 7.5% |
Library | 4.5% | 4.5% |
Subtotal : Facilities | 35.0% | 36.0% |
Administrative | ||
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 2018 - FY 2021 | 62.0 | 26.0 |
FY 2015 - FY 2017 | 62.0 | 26.0 |
FY 2009 - FY 2014 | 61.0 | 26.0 |
FY 2005 - FY 2008 | 58.0 | 26.0 |