| Policy Title | Facilities and Administrative Cost Recovery and Distribution Policy |
|---|---|
| Policy Category | Sponsored Research Policies |
| Original Policy Approval Date | April 20, 2015 |
| Policies Superseded | Distribution of Indirect Funds from Academic and Institutional Grants of December 19, 2002 |
| Responsible Office/Vice President | Office of Sponsored Research and Programs / The Provost and VP for Academic Affairs |
| Related Policies | Principal Investigator Eligibility and Assurances Policy |
| Frequency of Review | 5 years |
| Date of Next Review | April 2029 |
I. SCOPE
This Facilities and Administrative Cost Recovery and Distribution Policy (“Policy”) applies to all Sponsored Projects entered into by Arcadia University.
II. POLICY STATEMENT
The purpose of this Policy is to ensure that Facilities and Administrative Costs (“F&A Costs”) are recovered to the maximum extent allowable and properly used to support and encourage research and other sponsored programs at the University.
III. POLICY
It is the policy of the University to use the federally approved F&A rate, applied to all employee salaries and benefits budgeted or charged, on all Sponsored Projects. If a solicitation or a sponsor’s written policy restricts the F&A rate that can be charged on a Sponsored Project, the University will accept that lower rate.
IV. DISTRIBUTION OF RECOVERED F&A COSTS
With the understanding and appreciation that it takes the contribution and effort of many to ensure the success of Sponsored Projects, the University will distribute F&A recovered from a Sponsored Project to further support and stimulate University research and programs and ordinarily return the recovered F&A as follows:
- University General Fund: 25%
- Provost: 10%
- OSRP: 15%
- Dean/College of the project PI/PD: 30%
- Department of the project PI/PD: 15%
- PI/PD: 5%
For proposals with more than one PI/Co-PI, the 5% allocation will be equally distributed among the numbers of individuals in this role.
Deviations from the above distributions will be documented and authorized by signatures on the Proposal Routing and Approval Form. If the University no longer employs the PI/PD (Co-PI), funds in the associated F&A account will be returned to the Dean/College’s account.
V. F&A COSTS RECOVERED FROM SPONSORED PROJECTS
F&A Costs recovered from Sponsored Projects will be transferred to designated accounts, as indicated by this policy or on the Proposal Routing and Approval Form when applicable, ninety (90) days after the end of the quarter in which the F&A Costs were accrued.
VI. USE OF F&A COSTS
All recovered F&A Costs are to be used to support and stimulate new or expanded Sponsored Projects and research initiatives or to cover the costs associated with research and programs not supported by external funding. Possible uses of F&A Costs recovered include:
- Bridge funding costs – costs associated with salaries and benefits for key research personnel to retain them between gaps in an award’s project periods and associated research or program costs for this research personnel;
- Proposal development costs – costs associated with hiring of grant writers, travel expenses to meet with sponsors, expenses to host a sponsor and/or prospective partner or collaborator for a project, seed funding to start new projects that will generate external funding, or similar items of costs;
- Voluntary uncommitted cost share – costs associated with research equipment, materials, and supplies, publication and dissemination costs associated with research or Sponsored Project activities, and salaries for undergraduate students, graduate assistants, any other temporary help needed to assist with a Sponsored Project, when funds are not available from the grant;
- Sponsor required cost-sharing – expenses involved in meeting mandatory cost share requirements not available from other university sources, when allowed by the Sponsor;
- Course release buy out – costs associated with replacing instructor of record who is devoting time to a grant.
VII. TIMEFRAME FOR USE OF F&A COSTS RECOVERED FROM SPONSORED PROJECTS
There is no predetermined time limit for the use of F&A Costs recovered on Sponsored Projects. These funds will roll forward from one fiscal year to the next.
VIII. DEFINITIONS
- F&A Costs, sometimes referred to as indirect costs or overhead, are items of cost necessary to support a Sponsored Project but cannot be readily assigned to or identifiable with any single project. F&A Costs typically cover normal business operations of an institution. Examples of Facilities costs include: building heating/cooling and electrical; snow removal; library, etc. Administrative costs include personnel supporting sponsored projects administration; compliance; purchasing; finance; and similar items.
- F&A Rate is the F&A rate negotiated with and approved by the Department of Health and Human Services for use on federal sponsored projects, unless otherwise specified in the solicitation. The base upon which Arcadia’s F&A Rate is applied is all employees’ salaries, wages, and benefits. The F&A Rate is renegotiated every four to five years.
- OSRP is the Arcadia University Office of Sponsored Research and Programs.
- PI/PD is a person eligible to act as a Principal Investigator or Program Director on sponsored projects.
- Sponsor is the organization or funding agency that funds a Sponsored Project.
- Sponsored Projects are externally funded activities in which a formal written agreement like a grant, award, sub-award agreement, cooperative agreement, contract, or fellowship is executed between Arcadia University and a Sponsor.
- University is Arcadia University, its colleges, schools, affiliates, divisions and subsidiaries.
IX. EFFECTIVE DATE
April 20, 2015, revised November 1, 2023.
X. SIGNATURE, TITLE, AND DATE OF APPROVAL
/s/ Ajay Nair
Ajay Nair, President
Date: November 1, 2023
