Off-Campus Facilities and Administrative (F&A) Rate Policy

Policy Section
Sponsored Research

Effective Date
August 1, 2009
Last Updated
March 21, 2019
Responsible Executive
Vice President for Finance and Treasurer
Responsible Office
Sponsored Research Accounting
Contacts
Glynis Sherard
Director, Sponsored Research Accounting
[email protected]
(609) 258-4996
Elizabeth Adams
Director of Office of Research and Project Administration
[email protected]
(609) 258-3090

Summary

The Off-Campus Facilities and Administrative (F&A) Rate Policy establishes the following:

  • definition of “off-campus”;
  • criteria for use of off-campus rate;
  • information for the Princeton University community about how to request the use of the off-campus rate on a sponsored project.

Princeton University’s current off-campus rates are negotiated through its cognizant audit agency, the Department of Health and Human Services (DHHS).

II. Who is Affected by this Policy

All off-campus sponsored projects; Principal Investigators (PIs), Grant Managers, Department Managers, Sponsored Research Accounting (SRA), and the Office of Research and Project Administration (ORPA).

III. Definitions

Off-campus

A project, or part of a project, is considered to be performed off-campus if the activity is conducted at a location other than Princeton University's academic lands and the majority of the Facilities portion of F&A (indirect costs), e.g., operation and maintenance, depreciation or lease of buildings, equipment and improvements, and library associated with Princeton University's facilities, both owned and leased, is not applicable. If a project is located in leased space and the lease is a direct charge to the project, then the project is considered off-campus; if the project is not charged directly for the lease cost and the lease is a part of Princeton University's Facilities & Administrative (indirect cost) rate, then the project is considered on-campus. In other words, the classification of on- or off-campus is made solely for the purpose of applying the correct Facilities & Administrative (indirect cost) rate.

IV. Policy

PROJECTS CONDUCTED PARTIALLY OFF-CAMPUS

Princeton University’s agreement with the DHHS provides that “For all activities performed in facilities not owned by the institution and/or to which rent is directly allocated to the project(s), the off-campus rate will apply. Actual costs will be apportioned between on-campus and off-campus components. Each portion will bear the appropriate rate”.

The criteria for assigning an off-campus indirect cost (F&A) rate to a project or a portion thereof are as follows:

  1. Project personnel who are direct charged to the project must be working completely off-campus throughout the portion of the project to which the off-campus rate is applied.
  2. General project administrative and financial support services, e.g. payment of salaries and expenses, will be provided; other University support services, such as library, departmental research equipment, machine shop, or office space will not be provided.
  3. For projects conducted partially off-campus, the on- or off-campus determination shall be based on the Princeton University portion of project costs, not including costs of a collaborating entity. "Project" refers to the grant or contract award to Princeton University, not including collaborating entities.
    1. Grant or Contract Award (annual level) under $100,000 in Modified Total Direct Costs (MTDC): Projects of this size which are partially performed off-campus are not apportioned between their on-campus and off-campus components for F&A rate purposes; instead, either the on-campus orthe off-campus rate will be used in its entirety. If 50% or more of the project's Modified Total Direct Costs (MTDC) is to be expended on campus, the entire project is charged the on-campus F&A rate. If 50% or more of the MTDC is determined to be off campus, the entire project is charged the off-campus F&A rate.
    2. Grant or Contract Award (annual level) of $100,000 or more in Modified Total Direct Costs (MTDC): For projects of this size which are partially performed off-campus, MTDC is apportioned between on-campus and off-campus components for F&A rate application purposes when the lesser component is 20% or more of the MTDC of the project. However, if 80% or more of the project’s MTDC is determined to be on-campus, the entire project is charged the on-campus rate. If 80% or more of the MTDC is determined to be off-campus, the entire project is charged the off-campus rate.

Procedures

PROPOSAL STAGE

  1. Prior to proposal submission, the Principal Investigator must prepare the statement of work, budget, and budget justification that describe the off-campus project and delineate the off-campus costs.
  2. The Department Administrator must submit the final statement of work, budget, and budget justification to ORPA for review. If the project is anticipated to be partially off-campus, the budget must include both the off-campus and the on-campus components.
  3. ORPA reviews and approves the use of the off-campus rate.

AWARD STAGE

  1. ORPA establishes the off-campus Project in Coeus/Peoplesoft Financials based on the proposed plan and awarded funding amount. For projects with both off- and on-campus components, two project grants will be established.
  2. The Department Administrator ensures appropriate off-campus costs are applied to the off-campus Project based on the proposed budget and actual expenditures.
  3. The Sponsored Research Accounting analysts monitor the appropriateness of off-campus costs that are applied to the off-campus Project.
  4. The Department Administrator and Principal Investigator are responsible for the same close-out procedures for off-campus as for on-campus projects.

Revision Log

3/21/19 - Updated contact information.

1/18/19 - Updated contact information, added E. Adams.

10/1/18 - Updated Executive Sponsor listing.

2/27/17 - Updated to align with current business practices and our Prime systems implementation.

2/25/2011 - No changes. Copied to web-based policy library.

8/1/2009 - Approved.