Grant Budgets:Calculating F&A

May 21, 2009

What is F&A?

• Facilities and Administrative Costs – aka indirect costs. F&A covers institutional costs that could not easily be assigned to a particular project. http://www.utmem.edu/research/research_administration/docs/F&A%20info%20for%20web%207%2014%2008.pdf

F&A Rate(s)• F&A rate for Memphis – on-campus: 48% MTDC

• F&A rate for Memphis – off-campus: 26% MTDC

• F&A rate for GSM (COM-Knoxville): 38% MTDC

• F&A rate for COM – Chattanooga – n/a• Rate Agreements:

http://www.utmem.edu/research/research_administration/FAQ.php#budgets

What is MTDC?

• Modified Total Direct Costs:

• Total Direct Costs minus equipment, patient care, rent, that portion of each subaward over the first $25K

How do I calculate MTDC?

• Total Direct Costs (personnel salaries, fringe benefits, supplies, equipment, subawards, consultants, etc.)

• MINUS equipment ($5K and over), patient care costs, that portion of subs over $25K, rent)

• Equals MTDC

Example – Modular Budget, no equipment or subs

• Total Direct Costs = $250,000• Equipment 0• Modified Total Direct Costs = $250,000• x 48%• = F&A Costs = $120,000• TDC + F&A = Total Costs = $370,000

Sample w/equipment• Total Direct Costs = $250,000

• Minus Equipment $50,000

• Modified Total Direct Costs = $200,000

• x 48%

• = F&A Costs = $96,000

• TDC + F&A = Total Costs = $346,000

Sample Mod w/One Subaward• Direct Costs, including Sub TC of $105,000

– less Sub F&A = $250,000• Sub F&A $30,000• Total Direct Costs $280,000• Minus Subaward over $25K = $80,000

• Modified Total Direct Costs = $200,000• x 48%• = UT F&A = $96,000• TDC + F&A = Total Costs = $376,000

Sample Mod w/Equipment & Subaward under $25K

• Direct Costs, including Sub DC of $12,000, less Sub F&A =

$250,000• Sub F&A 5,000• Total Direct Costs $255,000• Minus Equipment 25,000 • (Subaward $12,000 DC, 5,000F&A) • Modified Total Direct Costs = $230,000• x 48%• = UT F&A Costs = $110,400• Total Costs = $365,400

Sample w/Equipment & Subaward over $25K – Modular

Grant• Direct Costs, including Sub TC of $30K, less Sub

F&A = $250,000• Sub F&A - $10,000• Total Direct Costs $260,000• Minus Equipment 25,000 • Minus Sub TC over $25K 5,000 • Modified Total Direct Costs = $230,000• x 48%• = F&A Costs = $110,400• Total Costs $370,400

Sample w/Equipment & Subaward over $25K ($50K) –

Non-Modular Grant• Total Direct Costs = $350,000• Minus Equipment 25,000 • (Subaward total costs = 50,000) • Minus Sub TC over $25K 25,000 • Modified Total Direct Costs = $300,000• x 48%• = F&A Costs = $144,000• TDC + F&A = Total Costs = $494,000

Sample Multi-year Modular• Year 01 Year 02 Year 03• Direct less sub F&A $250,000 $250,000 $250,000• Sub1 F&A (50K TC) 10,000 10,000 10,000• Sub2F&A (17K TC) 5,000 5,000 5,000• Sub3 F&A (10KTC) 0 0 0• Total Direct Costs$265,000 $265,000 $265,000• Equip 10,000 25,000 0• Sub1 TC over $25K 25,000 (50K) 50,000 (50K) 50,000 (50K)• Sub2 TC over $25K 0 ($17K) 9,000 ($17K)17,000

(17K)• Sub3 TC over $25K 0 ($10K) 0 ($10K) 5,000 (10K)• MTDC = $230,000 $181,000 $193,000• UT F&A $110,400 $86,880 $92,640• Total Costs $375,500 $351,880 $357,640

Sample Multi-Year Detailed Budget

Year 01 Year 02 Year 03

• Direct $350,000 $350,000 $350,000• Equip 10,000 25,000 0• Sub1 over$25K 25,000 (50K) 50,000 (50K) 50,000(50K)• Sub2 over$25K 0 (17K) 9,000 (17K) 17,000(17K)• Sub3 over$25K 0 (10K) 0 (10K) 5,000(10K)• MTDC = $315,000 $266,000 $278,000• UT F&A 151,200 127,680 133,440• Total Costs $501,200 $477,680 $483,440

ORA Contacts• egrants@utmem.edu• Connie Bozant – 901 448-4188• Ginny Geer 901 448-1668

– vgeer@utmem.edu

• Melanie Luchs – 901 448-3303– mluchs@utmem.edu

• Debbie Smith – 901 448-4823– dsmith@utmem.edu

ORA Web Site

• http://www.utmem.edu/research/research_administration/