97-6  Obsolete

Facilities and Administrative Cost Rates
December 1, 1997

(Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)

Facilities and Administrative Cost Rates, formerly known as Indirect Cost, have now been established for the period of July 1, 1998 through June 30, 2002. Please begin using these rates on proposals as appropriate based on the rate effective at the start of each proposal year.

Through 6/30/98 7/1/98-6/30/00 7/1/00-6/30/02
Organized Research
    On Campus 50.0% 49.5% 49.0%
    Off Campus 26.0% 26.0% 26.0%
    On Campus 54.0% 54.0% 54.0%
    Off Campus 26.0% 26.0% 26.0%
Other Sponsored Agreements
    On Campus 30.4% 30.4% 30.4%
    Off Campus 25.3% 25.3% 25.3%
General Clinical Research Center
    I U Hospital 27.7% 27.7% 27.7%

The agreement for rates effective prior to July 1, 1998 is dated July 18, 1996.
The agreement for rates effective July 1, 1998 through June 30, 2002 is dated October 9, 1997.

The 2000/02 rates should be used for proposals extending past that time until new rates are established.

For proposals being submitted that involve two or more fiscal years, budget the rate for the full year that is applicable on the first day of the proposal budget period. For example, if a proposal is being submitted with a budget year from April 1, 1998 to March 31, 1999, use the rate that is applicable on the first day of each budget period for the entire budget year. Rates are not split within a budget year.

Base is modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.