Facilities and Administration Costs

Facilities and Administration Costs (F&A) are indirect costs also referred to as overhead costs or administrative costs. These are actual costs incurred to conduct the normal business activities of an institution and are not readily identified with or directly charged to a specific sponsored research award. The normal activities of the University that are classified as F&A expense include:

  • General Administration
  • Departmental Administration
  • Sponsored Programs Administration
  • Operation and Maintenance
  • Library
  • Building and Equipment Depreciation
  • Non-Capitalized Interest

Requirement

F&A are actual costs which are necessary to support sponsored programs, but which cannot be readily assigned to individual projects. F&A should be requested at Drake's approved rate on all sponsored programs applications unless the sponsor prohibits F&A or designates another rate. Exceptions must be approved by the Vice President for Business and Finance and the Provost before the application is submitted.

Drake's Negotiated Rate

Drake University's F&A rate is calculated in accordance with federal cost principles and is negotiated periodically with the U.S. Department of Health and Human Services (HHS). (See Drake's Current Negotiated Rate).

On-Campus: A project is defined to be "on-campus" if 50% or more of the Drake activities are performed in facilities and/or to which rent is directly paid by Drake. In this case, the on-campus rate will apply to the entire project and the first $25,000 of each subcontract.

Off-Campus: A project is defined to be "off-campus" if 50% or more of the Drake activities are performed in facilities outside of Drake and/or to which rent is directly allocated to the project(s).

Exceptions: Any exceptions to the above must be approved by the Vice President for Business and Finance and the Provost.

Learn more: Allowable Costs

Sponsored Programs
Administration (SPA)

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