Effort Commitments and Payroll Certification
RAMP - Frequently Asked Questions (FAQ)
No-Cost Extension Request Procedures
Extramural Support Policies and Procedures
Research Education Development (RED)
Total Awards
$1912M
Federal Awards
$1008M
Non-Federal Awards
$904M
Research Expenditures
6th (FY23)
Page Updated: June 24, 2024
Applicable to UW–Madison F&A rate agreement effective FY2018 through FY2023.
The Facilities and Administrative (F&A) rate is negotiated between the University of Wisconsin – Madison (UW) and the Department of Health and Human Services (DHHS) Cost Allocation Services. Before negotiations began, the UW submitted a required proposal documenting the actual costs incurred during FY16 (July 1, 2015 – June 30, 2016) for such items as space, utilities, general purpose equipment, administrative salaries and benefits, etc. Costs in these categories have increased significantly since our previous negotiation in the year 2013. Even with the current rate increases the UW will not be fully recovering the costs for these items.
Yes, per UW policy, the new rates apply to all extramurally sponsored projects.
The new rates should be used immediately.
Unless sponsor policies state otherwise, supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates.
Exception: The National Science Foundation has a policy of funding supplemental support using the negotiated indirect cost rate(s) approved at the time of the initial award, so supplemental proposals to NSF should use the original agreement's rates. See NSF PAPPG Chapter X.D.1.d.
If you have questions, please contact the RSP Proposal Team.
The rate that is effective at the beginning of the budget period (typically 12 months) should be used for that budget period. See below for different examples that illustrate two possible start dates.
Proposal A Start date May 1st, 2019 (during FY2019) |
F&A Rate |
Proposal B Start date September 1st, 2019 (during FY2020) |
F&A Rate | |
Budget Year 1 5/1/2019 – 4/30/2020 |
54% |
Budget Year 1 9/1/2019 – 8/31/2020 |
55% | |
Budget Year 2 5/1/2020 – 4/30/2021 |
55% |
Budget Year 2 9/1/2020 – 8/31/2021 |
55% | |
Budget Year 3 5/1/2021 – 4/30/2022 |
55% |
Budget Year 3 9/1/2021 – 8/31/2022 |
55.5% | |
Budget Year 4 5/1/2022 – 4/30/2023 |
55.5% |
Budget Year 4 9/1/2022 – 8/31/2023 |
55.5% | |
Budget Year 5 5/1/2023 – 4/30/2024 |
55.5% |
Budget Year 5 9/1/2023 – 8/31/2024 |
55.5% |
Competing renewal applications should use the appropriate F&A rate specified in the new rate agreement, regardless of the rate that was applied to the previous segment. You should determine when the new segment is expected to start and use the rate that is effective at the beginning of the budget period for that budget period.
You should use the rate in effect at the beginning of each budget period. For budget years that begin on or after 7/1/2018, use 54%. For budget years that begin on or after 7/1/2019, use 55%. For budget years that begin on or after 7/1/2021, use 55.5%.
You should use the rates in place as of 6/30/2022. For example, a research project with a budget period that begins on or after 7/1/2022 should use a 55.5% F&A rate. You will be notified once a new rate agreement is in place.
Yes, proposals previously submitted and approved at the 53% rate will be honored for the initial award period or competitive segment, which is a period of years approved by the sponsor at the time of the award. (See #10 below for examples of competitive segments.) However, in some cases, a sponsor may allow the new F&A rate and/or may provide additional funding to support the added cost. Contact RSP for guidance.
Rates currently in effect on active awards will be continued until the end of the current competitive segment. A competitive segment is a period of years approved by the sponsor at the time of the award. See examples below:
Budget Period: 07/01/2018 – 06/30/2019
Project Period: 07/01/2015 – 06/30/2020
Competitive segment: 07/01/2015 – 06/30/2020
Facilities and Administrative Costs | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|
F&A Cost Rate 1 | 53% | 53% | 53% | 53% | 53% |
F&A rate in Notice of Award for competitive segment: 53%
The UW will honor the 53% rate as specified in the notice of award for this competitive segment.
Budget Period: 07/01/2018 – 06/30/2019
Project Period: 06/10/2000 – 06/30/2020
Competitive segment: 07/01/2018 – 06/30/2020
Facilities and Administrative Costs | Year 19 | Year 20 |
---|---|---|
F&A Cost Rate 1 | 53% | 53% |
F&A rate in Notice of Award for competitive segment: 53%
The UW will honor the 53% rate as specified in the notice of award for this competitive segment.
Federal contracts will continue with the current rate until the end of the period of performance as specified in the agreement. In other words, if the contract defines a specific F&A rate which is locked into the agreement, the specified rate will continue.
The rate approved by the sponsor at the time of award will continue for the remainder of the award period.
In most cases the project number will remain the same, however, there may be special circumstances that need to be evaluated on a case-by-case basis.
Unless sponsor policies state otherwise, supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates.
Exception: The National Science Foundation has a policy of funding supplemental support using the negotiated indirect cost rate(s) approved at the time of the initial award, so supplemental proposals to NSF should use the original agreement's rates. See NSF PAPPG Chapter X.D.1.d.
If you have questions, please contact the RSP Proposal Team.
To the extent possible, the project number would remain the same. We will need to evaluate these situations on a case by case basis, looking at circumstances such as the timing of supplement, the amount of the supplement, and the amount of the original award.
No. Existing projects will continue with the current rate as indicated in the award document until the end of the current award period or competitive segment.
The sponsor should use the F&A rate in place at the time the award is made. In this case, the award should incorporate the higher F&A rate in effect on August 1, 2019. The higher F&A rate may necessitate preparation of a revised budget. If you have questions, please contact the RSP Proposal Team.
RSP will accept the award and enter in SFS the budget’s total direct costs and total indirect (F&A) costs as stated in the award notice, but we will set the F&A rate(s) to calculate at the originally proposed rate(s). Doing so will enable the PI to access funding for direct costs as originally planned.
This is a fairly unusual situation, but we will accept the award with the F&A rates as awarded by the sponsor. Since the sponsor provided additional funding to cover the new F&A rates, we will charge the new rates to the project. Additionally, the agency has provided the new rates based on our fiscal year, so that may result in our recovering a higher F&A rate sooner than originally anticipated. It also means that we will apply two different F&A rates at some point during a single budget period.
RSP will accept the award and enter in SFS the budget’s total direct costs and total indirect (F&A) costs as stated in the award notice, but we will set the F&A rate(s) to calculate at the originally proposed rate(s). Doing so will enable the PI to access funding for direct costs as originally planned and perhaps mitigate the awarded amount being lower than anticipated.
Existing awards will continue using the rates at which they were awarded. Cooperative Extension and Wisconsin Public Media should use UW-Madison F&A rates for all proposals going forward. For example, proposals for public service projects should be submitted using a 38% F&A rate, regardless of their start date.
Existing awards will continue using the rates at which they were awarded. Continuing Education and Business and Entrepreneurship should use UW-Madison F&A rates for all proposals going forward. For example, proposals for public service projects should be submitted using a 38% F&A rate, regardless of the start date.
In the past, off-campus projects had to take place in facilities not owned by the institution AND in facilities for which rent was directly allocated to the project. The agreement signed in October 2018 indicates that for activities performed in facilities not owned by the institution OR in facilities to which rent is directly allocated to the project, the off campus rate will apply.
The other condition in the definition still applies: An agreement will not be subject to more than one F&A rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project. If less than 50% of a project is performed off-campus, the on-campus rate will apply to the entire project.
Carryover is subject to the F&A rate in effect when the costs are incurred.