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Office of Research and Sponsored Programs

Implementaion of New F&A Rates

Proposals not yet submitted

  • All proposals subject to the federally negotiated rates that are currently being prepared for submission are to include the new F&A rates, with the clarifications noted below.

Existing awards

  • F&A rates for existing awarded projects will not be increased to the new rates until such time as a proposal is submitted for new competing cycle of funding.

Pending (already submitted) proposals for NIH grants

  1. Competing Proposals: New, Renewal, Resubmissions.  A copy of the new rate agreement will be included with the other "Just-in-Time" documentation requested by the NIH.
  2. Supplements:  Supplements will be accepted at the rate submitted unless NIH provides an opportunity to update the proposal. All new supplements however should be prepared using the new rates.
  3. Non-Competing Proposals: Continuations. Continuations include any pending or future continuation proposals for existing grants. Since the F&A cost allocation/rate for NIH continuation funding is already established with the initial award, the rates will not change for non-competing funding for on-going projects.

Pending (already submitted) proposals for all other federal funding agencies or non-Federal agencies using the federally negotiated rates  

  1. For pending proposals already submitted, and if the agency requests a revised budget, the new F&A rates should be included in the revised budget. Please Note: If a revised budget is requested, and if the project is restricted to a total cost limitation, then the increased rates will not be used if such use would impact the already proposed direct costs for the project.
  2. If an agency does not/will not accept the new rates at the time of award for proposals that have already been submitted prior to the implementation of the new rates on 7/1/12, the previously proposed rate will apply and the award will be accepted with the lower rate.

Using Multiple F&A Rates in a Proposal Budget

If you are using the Cayuse 424 grant proposal preparation system, the new rates have already been entered and will calculate the budget rates correctly using a mathematical average rate for the twelve month period.  If you already have a proposal in preparation using the old rates, use the following

Cayuse Procedure to  Update Budgets and Total Costs

  1. Locate and open the proposal in question in the Cayuse 424 system.
  2. Open the SF424RR Face Page 1
  3. Find Section 5. Applicant Information section
  4. Find the refresh icon on the right side of the page cayuse_icon.  Clicking on this icon will re-autofill the applicant organization from the institutional profile (new rates already posted)
  5. A pop-up window display and allow the user to select a new Default IDC rate
  6. Select the new rate and click the “Re-autofill Applicant Organization” button in the window.
  7. It will automatically re-calculate the budgets with the new rate.

IDC Rate Calculation Method

New proposals that have a period of performance other than the July through June time frame that cross over from FY13 to FY14 will contain more than one F&A rate.  The rate shown is a mathematical average rate for the twelve month period using the following formula:

F&A rate #1 x # of months in effect = A
F&A rate #2 x # of months in effect = B
A + B = C

C divided by the # of months in the budget period = Average F&A rate
This rate is then multiplied by MTDC base amount to the get total indirect costs for the budget period.

Since the rate shown is the calculated average and not the two separate rates, you will need to address the discrepancy in the budget justification.