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).
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.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- ORPA reviews and approves the use of the off-campus rate.
- 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.
- The Department Administrator ensures appropriate off-campus costs are applied to the off-campus Project based on the proposed budget and actual expenditures.
- The Sponsored Research Accounting analysts monitor the appropriateness of off-campus costs that are applied to the off-campus Project.
- The Department Administrator and Principal Investigator are responsible for the same close-out procedures for off-campus as for on-campus projects.
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.