F&A Rate Process Change (From University Research Administrators Forum)

Please see the announcement below that was distributed to Faculty.  This topic will be discussed at the SPA meeting on January 15th.

From: UConn – Office of the Vice President for Research <ovpr@uconn.edu>
Sent: Thursday, January 9, 2020 9:47 AM
Subject: F&A Rate Process Change

Dear Principal Investigator and Grants Administrator,

UConn must change its practice of grandfathering the F&A rate originally proposed to applying the F&A rate in effect at time of award (in some cases the effective rate will have increased due to a delay in the award start date).  Even when this practice results in less F&A being charged to the grant, there have been repeated NSF audits requiring institutions to charge the negotiated rate in effect at the time the transaction posts. The same is true for UConn in the current NSF audit.

To meet this requirement, this year all sponsored projects are being transitioned so that expenditures that post to a sponsored project on July 1 or thereafter are charged in accordance with the current F&A rate agreement and not in accordance with the proposal budget:

  • This applies to all projects that had a proposed F&A rate of 59.5%
  • This does not apply to projects that have a mandatory F&A cap or a set or reduced F&A rate (such as training grants, many foundation sponsors, etc.)
  • New awards will be set up at the F&A rate that is in effect when the notice of award is received. (In cases where the rate varies from what was submitted in the proposal, SPS will contact PIs and request that they submit a revised budget as a part of the award setup process.)
  • SPS will contact you when a rebudget is needed; however, you may also submit a rebudget in advance of SPS contacting you

If you have an award that is ending this year, SPS will take the necessary steps as part of the close out of your award. You do not need to do anything.

During the transition period, the Office of the Vice President for Research (OVPR) will calculate the amount of additional F&A that will be charged to the award as compared to the proposal (awarded) budget and will credit this amount to the PI’s F&A account to support the impacted project.  This transaction will be separate from the annual F&A distribution to faculty, departments, and Schools/Colleges, which will continue in accordance with the 10/10/10 distribution model. Please allow some time as SPS reviews and calculates each project account during this process.  Accounts that have already been adjusted to 61% will be prioritized and the return will be completed by April 30, 2020. The return for the remainder of the projects will be completed by the end of the fiscal year. Should you have a unique circumstance, please don’t hesitate to contact Laura Kozma or Jen Johnson.

Laura Kozma                                                                                                                                      Jen Johnson
Executive Director, Sponsored Programs Services                                                              Associate Director, Awards Management & Accounting
laura.kozma@uconn.edu                                                                                                             jennifer.johnson@uconn.edu
860.486.3798                                                                                                                                      860.486.4293

From: University Research Administrators Forum <UCRESADM-L@LISTSERV.UCONN.EDU> On Behalf Of Johnson, Jennifer M
Sent: Thursday, January 9, 2020 11:29 AM
Subject: [UCRESADM-L] F&A Rate Process Change