Facilities & Administrative Rate (F&A)

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, FY2016 and FY2017. 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.
 

• 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.

The F&A rates reflect the negotiated rates with the Department of Health and Human Services.