Tulane University F&A Rate Agreement

The Tulane University F&A Rate Agreement Explained

If you are a researcher or a grant administrator, you have probably heard of the term F&A rate agreement – sometimes referred to as indirect cost rates – and how it affects funding for universities. In this article, we will discuss the F&A rate agreement for Tulane University and what it means for researchers and grant seekers.

What is an F&A Rate Agreement?

An F&A rate agreement, or Facilities and Administrative cost rate agreement, is a negotiated percentage of indirect costs that are allowed by funding agencies to cover the expenses of running a research facility. It includes costs such as rent, utilities, equipment, and other indirect expenses that cannot be easily allocated to a specific grant or project.

The F&A rate agreement varies among universities and is negotiated between the university and the federal government. Tulane University, like other research institutions, has its own F&A rate agreement that covers all research grants and contracts.

Tulane University`s F&A Rate Agreement

Tulane University`s F&A rate agreement is negotiated with the Department of Health and Human Services (HHS) and applies to all research proposals submitted to federal agencies. The current F&A rate agreement for Tulane University is 55% of modified total direct costs (MTDC).

MTDC includes all direct costs of a project, such as salaries, equipment, travel, and supplies, but excludes certain expenses, such as subcontracted services, rent, and equipment over $5,000. For example, if a grant proposal requests $100,000 in direct costs, the F&A rate of 55% would add an additional $55,000 to the proposal`s budget, resulting in a total budget of $155,000.

Why is an F&A Rate Agreement Important?

F&A rates are important because they provide funding agencies with an estimate of the indirect costs required to conduct a research project. These costs are essential to the operation of research facilities and are not typically covered by the direct costs of a project.

F&A rates also help universities recover the costs of maintaining research facilities and support staff. The funds generated from F&A rates are used to improve research infrastructure, provide training and development opportunities for research staff, and support future research activities.

How Does F&A Rate Affect Research Proposals?

The F&A rate agreement for Tulane University affects the total budget of a research proposal, as mentioned earlier. When preparing a research proposal, it is essential to include the F&A rate in the budget calculation to ensure that all indirect costs are covered.

If a grant agency has a maximum budget limit, the F&A rate may impact the amount of direct costs that can be included in the proposal. In such cases, it is essential to work with the university`s research administration office to ensure that all costs are accurately accounted for in the proposal.

Conclusion

In conclusion, F&A rate agreements are essential to the operation of research facilities and support staff. Tulane University`s F&A rate agreement is currently 55% of modified total direct costs and covers all federal research grants and contracts. When preparing a research proposal, it is crucial to understand the F&A rate agreement and include it accurately in the budget calculation to ensure that all indirect costs are covered.