New F&A Rate Agreement
The University is required to negotiate Facilities and Administrative (F&A) charges with the Federal Government every few years. The Department of Health and Human Services' Cost Allocation Services (CAS) group sent us a revised agreement (dated July 1, 2022) containing the updated rates that will take effect immediately for the new fiscal year (FY2023) until FY 2026. (June 30, 2026). These new rates are added to the Modified Total Direct Costs (MTDC) of a contract or grant to partially reimburse the University for research-related expenses.
Under this new agreement, the rate for on-campus Organized Research increased from 35.50% to 44%, and we have a new on-campus instruction rate of 40% and a new other sponsored activities rate of 30%.
The University's proposal, which details the actual expenses for research-related categories (space, utilities, wages, benefits, equipment, etc.) that we expended during FY20, served as the basis for these new rates (July 1, 2019-June 30, 2020).
The new rate will apply to all new proposals submitted on or after January 2023 and all new or new-continuing contracts and grants awarded for funding on or after July 1, 2022. Existing contracts and grants may continue to utilize the rates originally awarded. The revised rates should be applied immediately to new supplemental funds, competitive bids, just-in-time (JIT) information, and industry contracts and proposals.
If you have any questions please contact Renita Wiley, Director Sponsored Programs Administration rwiley15@kennesaw.edu.