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Facilities and Administration & Fringe Benefit Rates

FACILITIES & ADMINISTRATION RATES

NEW: WVU Rate Agreement FY 2018

These facilities and administration rates (F&A) must be charged for all sponsored programs unless a program or an agency has been granted a legislatively endorsed restriction on the F&A rate that is to be charged or, in the case of private agencies, an established written policy exists which limits F&A rates.

F&A Rates   FY2014 FY2015 FY2016 FY2017 FY2018
Research on campus 48% 49% 49% 50% 50%
  off campus 26% 26% 26% 26% 26%
Instruction on campus 55% 55% 55% 55% 55%
  off campus 26% 26% 26% 26% 26%
Other Sponsored Activity on campus 32.5% 32.5% 32.5% 32.5% 32.5%
  off campus 26% 26% 26% 26% 26%

Fringe Benefit Rates

FRINGE BENEFIT RATES FY2018:
Effective July 1, 2017
Benefits Eligible, Full time 23.50%
Non-Benefits Eligible, Part time 8.00%
Undergraduate Student 2.00%
Graduate Student 6.00%

FY 2018 Fringe Benefit Rate Components


Benefits
Eligible
Non-
Benefits
Eligible
Undergraduate
Student
Graduate
Assistant
Social Security/Medicare 7.00% 7.10% 1.60% 0.32%
Worker’s Compensation 0.40% 0.40% 0.40% 0.40%
Unemployment 0.05% 0.50% -
-
Insurance 9.86% -
-
5.28%
Retirement 5.98% -
-
-
Child Care 0.01% -
-
-
Terminated Annual Leave
Pay-out
0.20% -
-
-
Total
23.50%  8.00%
2.00%
6.00%

About Facilities & Administrative (F&A) Costs

Facilities and Administrative (F&A) costs (also known as “indirect costs’ or “overhead costs”) are those costs of an institution which are not readily identifiable with a particular project or activity but nevertheless are necessary to the general operation of the institution and the conduct of its activities. The cost of operating and maintaining buildings, grounds and equipment depreciation, general and departmental administrative salaries and expenses, sponsored programs and library costs are types of expenses usually considered as F&A costs.

In theory, all such costs might be charged directly; practical difficulties however preclude such an approach. Therefore, they are usually grouped into common pool(s) and distributed to those institutional activities benefited through a cost allocation process. The end product of this allocation process in an F&A rate(s) which is then applied to individual grant and contract awards to determine the amount of indirect costs chargeable to the award

At West Virginia University, F&A costs are calculated on what is called a Modified Total Direct Costs (MTDC) base. This base consists of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.

The U.S. Department of Health and Human Services is West Virginia University and the WVU Research Corporation’s “cognizant agency” for negotiating facilities and administration (F&A) and Fringe Benefit rates to be charged on all sponsored agreements.

F&A is calculated on a Modified Total Direct Cost ( MTDC ) base -consisting of all salaries and wages, fringe benefits, materials, supplies services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capitol expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowship as well as the portion of each subgrant and subcontract in excess of $25,000.

NOTE: Effective immediately all proposal budgets being submitted for funding with an F&A Rate that is not in accordance with our approved rate agreement are to be calculated on the Total Direct Costs and not the Modified Total Direct Costs unless otherwise specified in the solicitation or RFP.

For example: An agency that limits the F&A to 15% would have the 15% calculated on all costs.