Ohio Administrative Code
Title 3364 - University of Toledo
Chapter 3364-70 - Research Protection and Practices
Section 3364-70-23 - Facilities and administrative "F&A" costs for sponsored research and programs
Current through all regulations passed and filed through September 16, 2024
(A) Policy statement
Sponsoring agencies or entities are expected to reimburse the university of Toledo "UT" for facilities and administrative costs "F&A" that cannot be clearly identified with a specific project but are essential to the conduct and completion of the work. Examples include administrative costs (e.g., payroll, purchasing, grants accounting, research and sponsored programs) and facilities costs (e.g., buildings, utilities, information technology "IT" support, laboratories). The university incurs these expenses as legitimate and expected costs during the performance of work on sponsored agreements; and, therefore, the institution must be equitably reimbursed for these costs.
(B) Purpose of Policy
This policy provides guidance on the use of F&A costs in sponsored research and programs proposal and budget development, and the distribution of recovered F&A funds between the central administration and college/departmental accounts.
(C) Definitions from U.S. Code of Federal Regulations (CFR) 200
Specific instructional or training activity established by grant, contract, or cooperative agreement. For purposes of the cost principles, this activity may be considered a major function even though an institution's accounting treatment may include it in the instruction function.
All research and development activities of an institution that are separately budgeted and accounted for. It includes sponsored research as defined here:
Programs and projects financed by federal and non-federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects and community service programs. However, when any of these activities are undertaken by the institution without outside support, they may be classified as other institutional activities.
Direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects.
A type of contract in which payment is defined by deliverables, and does not depend on resources used or effort expended.
(D) University F&A rates
The F&A rates are negotiated at regular intervals with UT's cognizant federal agency, department of health and human services. Each campus has its own set of rates, with established rates for different activities: organized research, instruction, off-campus activities, and other sponsored activities. Current F&A rates are listed on the university research and sponsored programs "RSP" web site: (http://www.utoledo.edu/research/rsp/). RSP will assign the appropriate rate for the location and type of activity proposed.
(E) University F&A rate adjustments
F&A rates are not negotiable on any grant or externally sponsored project except by the vice president of research or his/her designee.
The university charges its federally negotiated rate unless it exceeds the published rate of the agency for particular programs.
For some projects, funds flow from a federal agency to a non-federal prime sponsor (e.g., state agency, corporation, non-profit entity or other university) and then to UT. In such cases, the university's federal rate is applied.
Non-profit organizations may have a board-approved published rate for F&A costs on awards. The university will accept the sponsor's F&A rate for the award.
If the published guidelines of a foundation or non-profit sponsor (e.g. keck, dreyfus, kellogg, and joyce) require the award to be made to a 501(c)3 entity for sponsored activity (i.e. not a charitable gift), then the UT foundation typically accepts the award on behalf of the university.
As a university committed to regional engagement with partners, UT charges ten per cent of TDC on projects sponsored by local government entities, including the city of Toledo and lucas county. Other regional government partners may be eligible for F&A reductions as approved by the vice president for research.
All agreements, including with industry sponsors, must be negotiated by RSP. Corporate and industry sponsored projects are charged the federally negotiated rate. Faculty members, departments or colleges are not permitted to negotiate with any sponsors on F&A rates. Exceptions to F&A rates may only be approved by the vice president for research.
Clinical trials also are charged the federally negotiated F&A costs as other sponsored activities. When clinical trial budgets are quoted by the sponsor as a specified dollar amount per patient milestone or for the entire study, this dollar amount represents total cost, which includes the university F&A.Revenue from such clinical trials will be divided between direct cost and F&A based on the applicable F&A rate for that study.
(F) Distribution of F&A funds
F&A funds are allocated at the time of expenditures, based on the applicable F&A rate basis for the project. Funds are allocated to college and departmental accounts with the remainder to the central administration. The allocation of F&A funds for projects with investigators from multiple departments and/or colleges is determined by the credit distribution approved prior to submission.
(G) Residual funds
For fixed-price contracts where the work is completed to the satisfaction of the sponsor but funds remain, a portion of the residual funds will be deposited in a residual account to support the investigator's future UT research. Prior to distribution to the residual account, the federally-negotiated F&A rate of the original classification will be applied to the remaining funds, even if a rate below federally-negotiated rates were originally applied to the project. Before funds are distributed to the residual account, it must be verified that all technical and financial reports have been accepted by the sponsor and the project has been officially closed. The allocation of residual funds for projects with investigators from multiple departments and/or colleges is determined by the credit distribution approved prior to submission.
(H) Third party purchases
The practice of allowing the program sponsor or any other third party to purchase items directly for use by UT investigators with the intent of circumventing the university F&A charges and university purchasing/receiving policies and procedures, or making direct payments to study personnel or study subjects, is strictly prohibited. All such transactions must "flow" through the university restricted sponsored program account set up for support of the specific sponsored program.
(I) F&A and budget development
Budgets should always be approved by the RSP office prior to submitting to a potential sponsor. This is to ensure that an adequate budget, including F&A, has been projected. Actual F&A recovery is determined by expenditures and, if necessary, monies may be rebudgeted from direct costs to F&A. For example, if the basis for F&A is MTDC, as is the case for all UT federal grants/contracts, equipment and patient care expenses are excluded from F&A. If the budget for a particular grant/contract is established with all of the funds in one of those F&A-excluded categories, no monies will be budgeted for F&A, but if any monies are rebudgeted and expended for personnel, supplies or any other F&A-applicable category, monies must also be rebudgeted from direct cost categories to pay the applicable F&A. In short, F&A is not capped at the budgeted amount, but will be collected on all F&A-applicable expenditures, even if rebudgeting from direct cost is required.
