Ò»±¾µÀÎÞÂë

Rates Lifecycle

• Fixed Rates
  • Negotiated with Federal government (based on Ò»±¾µÀÎÞÂë projections)
  • Charged to Sponsored awards = F&A recovery
  • Provisional Rates –temporary rates superseded by Fixed Rates
• Actual Rates
  • Rates calculated with actual expenses based on fiscal year activities
  • Compared to Fixed Rates to get annual variance/carryforward
  • Carryforward
  • Variance between the fixed (the charged rate) and the actual rate
  • Audited CFW amount is applied to a subsequent rate negotiation

Rate Preparation

Carnegie Mellon uses MAXIMUS CRIS.net, a software tool to prepare F&A rate proposals. This software incorporates all the reporting requirements of 2CFR Part 200-Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards.

Department of Defense (DoD)

• Ò»±¾µÀÎÞÂë assigned to the DoD for rate cognizance
• 45 Institutions of Higher Education (IHE) assigned to the DoD
• Most IHE are Department of Health and Human Services cognizant

Office of Naval Research (ONR)

• ONR Indirect Cost Branch is responsible for administering (negotiation and approval) of indirect cost rates for the university.

Defense Contract Audit Agency (DCAA)

• Provides audit services to DoD and other federal sponsors
• Operates under the authority of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
• DCAA maintains an office at Ò»±¾µÀÎÞÂë
  • Auditing year-round
  • Two full-time and one to three part-time auditors on site

• F&A: Recovery of university overhead or indirect costs from sponsored research activities (overhead = real costs).
• F&A Rate: Facility overhead plus the administrative overhead divied by the modified total direct costs (MTDC) for research equals the percentage
• Facility: Cost of the physical infrastructure of university identified as benefitting research through review of space utilization (exception Library)
• Admin: Administrative costs of both central and department administration offices benefitting research
• MTDC: Total direct cost less equipment expense, subcontracts > $25k, graduate tuition

Building

• Depreciation expense for research buildings (new construction, purchases and renovations > $100k)
• Renovations <$100k

Interest

• Interest expense for bond-financed research buildings

Equipment Depreciation

• Depreciation expense for non-sponsored equipment

Operation and Maintenance

• General maintenance/utilities; protection/preservation of physical plant
• Central: Facilities Management and Campus Services (FMCS), Campus Design and Facility Developement (CDFD), Environmental Health and Safety (EH&S), University Police, Insurance
• Department funded FMCS activities (e.g., department moves, kitchen cleaning, day porters)

Library

• Operating costs of university libraries

• General Admin
  • Office of the President, accounting, Payroll, Office of the General Counsel, Institutional Research and Analysis, Office of Human Resources, University Audit Services, Budget and Financial Planning, Computing Services
  • University Advancement is not included in the general admin component
• Sponsored Projects Admin
  • Office of the Vice President for Research, Office of Sponsored Projects (OSP), Sponsored Projects Accounting (SPA), Cost Analysis
• Student Services Admin
  • University Health Services, Counseling and Psychological Services (CaPs)
• Department Admin
  • Deans and department heads offices, academic business offices (personnel and pro rata share of non-sponsored operating expenses)
  • Federal “allowance” for faculty administrative efforts (3.6%)
  • Office of the Provost administrative office

• Effective overhead rates equals the F&A rate divided by the total direct sponsored cost
• FY19 effective rate = 21 percent