NOTICE 2007-2
November 18, 2007

TO: Deans, Directors, Department Chairpersons, and Department Administrators (for distribution to all Faculty)
FROM: Kim Moreland, Director
SUBJECT:  Facilities and Administrative Rates for July 1, 2007 through June 30, 2010

New F&A rates have now been formally established for the University of Wisconsin-Madison. The rates for the period July 1, 2007 through June 30, 2010 are as follows:

On-Campus Research 48.5%
On-Campus Instruction 50.0%
On-Campus Public Service 36.0%
Off-Campus All Programs  26.0%

These rates were audited by the Department of Health and Human Services, Division of Cost Allocation.

When preparing extramural budgets, please remember that under MTDC (Modified Total Direct Costs) the applicable F&A rate is applied against all budget items except equipment, capital alterations and renovations, subagreement costs in excess of $25,000 per agreement, equipment and space rental costs, scholarships and fellowships, tuition remission, and patient care costs.

The University will be applying the new rates under the same principles as have been traditionally used. Due to the number of active programs and pending applications that include previously negotiated F&A rates, a transition from the old to the new rates will be administered as follows:

Your consistent use of the appropriate F&A rate will be appreciated. See the RSP web site at for more information concerning F&A policy and rate information by sponsoring agency.

Questions concerning F&A rates on proposals and awards should be directed to your School/College Research Administrator or your Pre-Award Grant and Contract Specialist in Research and Sponsored Programs. Questions concerning active projects should be directed to your School/College Research Administrator or the appropriate Post-award Accountant in Research and Sponsored Programs.

xc: School/College Research Administrators

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