University of Colorado F&A Rate Agreement

The University of Colorado F&A Rate Agreement: What You Need to Know

The University of Colorado is a renowned research institution that attracts funding from various sources, including federal agencies, private foundations, and corporate sponsors. These funding sources often come with specific requirements for how the funds can be used and what funds are eligible for reimbursement. The university`s Facilities and Administrative (F&A) rate agreement is an essential component of ensuring compliance with these requirements.

What is the F&A Rate Agreement?

The F&A rate agreement is a contract between the University of Colorado and the federal government that determines the indirect cost rate for sponsored projects. Indirect costs are expenses that cannot be directly attributed to a specific sponsored project, such as overhead expenses like rent, utilities, and administrative support. The F&A rate agreement provides a standardized method for determining the percentage of indirect costs that can be charged to a sponsored project.

How is the F&A Rate Determined?

The F&A rate is calculated using a formula that considers the university`s actual indirect costs and the level of sponsored research activity. The formula includes the direct cost base, which is the total cost of the project minus direct charges like salaries and equipment. The F&A rate applies to the direct cost base and is expressed as a percentage. The F&A rate can vary depending on the type of project, the source of the funding, and the location of the research.

Why is the F&A Rate Important?

The F&A rate is an essential component of ensuring compliance with federal regulations and sponsor requirements. The rate determines the maximum allowable indirect costs that can be charged to sponsored projects, which can impact the overall budget and funding available for research. Additionally, the F&A rate can affect the competitiveness of research grant proposals, as sponsors may have specific requirements for the F&A rate for their funding programs.

What is the Current F&A Rate for the University of Colorado?

The University of Colorado`s current F&A rate agreement was negotiated in 2016 and provides a rate of 55.5% for on-campus research and 32% for off-campus research. This rate applies to all federal awards and some non-federal awards.

In conclusion, the University of Colorado`s F&A rate agreement is a crucial component of ensuring compliance with federal regulations and sponsor requirements. By providing a standardized method for calculating indirect costs, the F&A rate helps to ensure that sponsored projects are appropriately funded and managed. As a researcher or administrator at the University of Colorado, it is essential to understand the F&A rate and its implications for your sponsored projects.