Facilities and Administrative Costs

Because the University of Mary Washington does not currently have a federally-negotiated rate for Facilities and Administrative (F&A) costs, including these costs in some grant proposals (sometimes referred to as "indirect costs") is sometimes problematic. Some granting agencies or organizations will not allow for indirect costs unless the applicant’s institution has a federally negotiated rate.

Facilities and Administrative costs are those indirect costs associated with the performance of a sponsored research activity (such as a grant or a contract). They are shared expenses related to the use of university facilities and administrative support. Facilities costs include but are not limited to the costs and depreciation for use of buildings and equipment; interest on the debt associated with buildings and equipment; and expenses for operations and maintenance expenses. Administrative costs include the proportion of all costs related to the personnel and supplies provided by the various administrative offices that support any aspect of the management of an external grant or contract.

If it is possible to claim an amount for indirect costs without relying on the federally-negotiated rate, the following guidelines apply:

1. use whatever percentage the sponsoring agency will allow, although in some cases (given the overall budget) you may decide to claim a lower indirect cost rate in the interest of making the project proposal as attractive as possible;

2. if the sponsoring entity has no established policy on indirect costs, use these figures: 25% of all salaries, fringe benefits, and other direct costs on government sponsored grants and contracts, and a rate of 10% of all expenses on non-government grant applications where permissible.

As a part of the internal reviewing process, UMW officials will approve the indirect costs proposed as a part of the budget. In accordance with Commonwealth of Virginia policy, 33% of any facilities and adminsitration costs recovered on an externally-funded grant or contract will be transferred to the institution’s E & G revenues. The remainder will be retained by UMW to support the extension and enhancement of research activities at the university.