New F&A rates have now been formally established for the University of Wisconsin-Madison. The rates for the period July 1, 2017 through June 30, 2022 are as follows:

	FY2018 7/1/17-6/30/18	FY2019 7/1/18-6/30/19	FY2020 7/1/19-6/30/20	FY2021 7/1/20-6/30/21	FY2022 7/1/21-6/30/22
On-campus Research	53.0%	54.0%	55.0%	55.0%	55.5%
On-campus Instruction	53.0%	53.0%	53.0%	53.0%	53.0%
On-campus Public Service	38.0%	38.0%	38.0%	38.0%	38.0%
Off-campus All Programs	26.0%	26.0%	26.0%	26.0%	26.0%

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

When preparing extramural budgets, please remember that under Modified Total Direct Costs (MTDC) 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, rental costs of off-site facilities, scholarships and fellowships, tuition remission, participant support, and patient care costs.

While it is important to recover our F&A costs under this new rate agreement, the University does not want to apply the rates in a way that would reduce the amount of direct costs currently available to research projects. We understand that research was planned and developed with a specific budgeted amount in mind. 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:

• All applications submitted after receipt of this memo should immediately use the new rates.
• Rates included in applications submitted prior to receipt of this memo will be accepted by the University for the life of that competitive segment unless the Sponsor increases the F&A rate and provides the additional funding.
• Rates currently in effect on all active awards will be continued for the balance of the funded period. In addition, non-competing continuation applications under these awards may continue to use the rate in effect.

Your consistent use of the appropriate F&A rate will be appreciated. See the RSP web site at https://rsp.wisc.edu/rates/ for more information concerning F&A policy and rate information by sponsoring agency, as well as an FAQ section which provides further guidance on how to handle the rate changes over the next several years.

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