University Of New Mexico Indirect Cost Rate Agreement

Each year, the Accounting and Reporting Office develops and negotiates with the federal government a series of R and Different. The federal government expects these negotiated rates to apply to sponsored premiums, based on the type of sponsored activity and where the sponsored event takes place. Activity types include Commanded Instruction, Organized Research, AG Organized Research, Other Sponsored Activities (Public Service) and Branch. For each of these types of activities, a campus fee and an off-campus rate are negotiated with the federal government. On-campus activities are activities in the university-owned space for which the university supports space costs from university funds. The “Installations” portion of the indirect cost rate on campus includes the cost of the space in which the effort is made on campus. Off-campus activities are activities performed in premises that are not owned or leased by the university to locations where indirect costs associated with the facility do not benefit the project. The “administrative” part of the indirect cost rate on campus (26%) applies to an off-campus sponsored project. For land used for off-campus research, an external source (typically a sponsor) provides funding by paying directly for the space, reimbursement to the university for renting or renting premises, or making research spaces available directly to the university for free. All proposals funded by the Confederation should be submitted with the current JHU rates. All rates are based on the MTDC. Note that the first USD 25,000 per outsource per project period is included in the Facilities and Management cost base. (Amounts above $25,000 of any subcontracting are excluded from the base.) Prior authorization is required whether they increase an existing budget category or use appropriations for categories not included in the proposed and approved initial budget.

If prior authorization is not taken by the appropriate authority, this may result in a reduction in costs. The JHU negotiates with the federal government the facilities and administrative rates (F-A, also known as indirect cost rates) and Fringe Benefit Conseil. These rates are formalized in the College and Universities Rate Agreement. For other sponsors, use the federal rate or the maximum sponsor rate if stated in their policies. If the sponsor`s rates are lower than the federal rate, you can include space and management fees in the direct cost budget. 1. What is the rate and how is it used? The facility and management rate is a rate used by organizations that receive federal and contract grants. This sentence allows the excellent institute to recover general institutional costs for common or common objectives that cannot be easily and specifically identified for a given project, teaching activity or other institutional activity. These costs include: 2. When will the rate be calculated and how is it approved? The NMSU (research and development rate) facility and management rate is calculated annually and proposed to our Federal Cognizant Agency, the Office of Naval Research (ONR). The ONR will then conduct a review by the Federal Agency for Cognitive Audit, the Contract Defense Audit Agency (DCAA). Once the review is completed, a DCAA report is submitted to the ONR.

Negotiations on the rate between the NMSU and the ONR will then begin and will be based on our proposal and the DCAA review. The ideal process usually takes place in the following time line: 5. Extension of budget/project periods with or without additional resources for NIH.


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