Megan Young asked 5 years ago
University policy on using a modified rate or a total direct cost rate for budgets and proposals. What is the consensus? Also, when to decide on using Modified total direct cost rates, Salary and Wages rates, or Total Direct Costs rate. How to decide if not specified by the sponsor.
jsimons Staff answered 5 years ago
Information about F&A rates is at this website: https://www.umaryland.edu/spa/budgets-and-expenses/fa-cost-rates/
For all federal and corporate sponsors, the rates in the table should apply unless there is an exception in the written sponsor funding opportunity, regulation, or policy. For example, for NIH Training Grants, the F&A rate is capped at 8%.
For existing state agreements, the F&A rate used in the prior agreement should be used. For new (meaning a new contract) UMB should request 15%, otherwise, the department administrator or PI must request a F&A waiver from the school dean’s office and Jim Hughes or contact the state agency and obtain state agency determination. For more information regarding specific state agreements, or questions about how F&A is applied to these agreements, please contact Richard Ingrao (ringrao@umaryland.edu) or Danielle Brown (dbrow010@umaryland.edu).
For other sponsors, if there is no established sponsor rate (as published in the sponsor funding opportunity announcement, instructions, and/or policy), then the applicable federal rate should be applied.