Facility and Administrative Cost Rates (Indirect Costs)

The total cost of a sponsored program (be it research,education, or public service based) consists of both direct and indirect costs. Direct Costs are specifically and clearly identifiable to the specific project. At Stony Brook, direct costs include, but are not limited to, salaries and wages for project personnel, associated fringe benefits, equipment, consumable supplies, travel, technical services, etc. Direct costs are incurred at the discretion of the investigator, in accordance with sponsor regulations and University/Campus and Research Foundation policies and procedures.

Facility and Administrative Costs (sometimes referred to as indirect costs, overhead, administrative allowance, or occasionally, institutional allowance,) are costs incurred in support of sponsored programs, in general, but not identifiable with any single project. Facility and Administrative Costs generally consist of sponsored program and general administration such as payroll and purchasing, and general institutional support services such as building maintenance, libraries, etc.

Reimbursement of Facility and Administrative Costs to educational institutions is predicated upon use of an indirect cost rate. This rate is developed in accordance with the cost principles specified by the Federal Government in OMB Circular A-21. The rate is reviewed and approved every three years by our cognizant audit agency, the U.S. Department of Health and Human Services (DHHS). (Copy of the IDC and Fringe Benefit rate agreement dated October 24, 2007)

The Facility and Administrative Cost rate is applied across a base consisting of all direct project costs (other than equipment, rental of outside facilities, amounts over the first $25,000 of each sub-contract, participant support, and alterations/renovations totaling $15,000 or more). The rate is termed a Modified Total Direct Cost (MTDC) rate. Separate rates are developed for grants, contracts, and cooperative agreements that (1) support research and/or clinical activities and that (2) support training and other educational activities.

Please contact your Sponsored Programs Administrator or Coordinator at 2-4402 for the current F&A rates.

All applications submitted by the Stony Brook campus must include the Facility and Administrative Rates at the rate approved by our cognizant audit agency unless one of three conditions is met:

• The sponsor has a formal published indirect cost policy which it consistently applies to all applications. In this event, the sponsor policy prevails.
• The project qualifies for either the Evaluative Testing Rate or the Administrative Rate.

(Both of these special campus rates have very specific requirements which a project must meet in order to be eligible for use.)

• Appropriate approval to include Facility and Administrative Cost Rates at a reduced rate has been obtained, well in advance of submission of the grant application. A copy of the procedure can be obtained from the Office of Sponsored Programs.

The following special rates may be used for non-federal funds when the required criteria are met:

Evaluative Testing Rate:

Used for agreements with companies providing a specific company issued protocol to be used in testing and evaluating a new investigational device, drug, or compound that they own. Such testing must be required to obtain or maintain federal government approval.

• 25% Total Direct Costs

Administrative Rate:

Applies to funds received in support of research or training activities where the sponsor provides the funds in advance and without further obligation on the part of the institution: i.e., no constraints on how the funds may be used, no financial or technical reporting requirements, no claims to copyright nor other claims to the ownership or licensing of intellectual properties.

• The rate is 15% Total Direct Costs.

This rate applies to Income from:

• external sources deposited in Service and Facility Accounts;
• copyright and/or licenses not flowing through the SUNY Patents and Invention Policy, Materials use, multiple sponsor, and other authorized income    accounts;
• fellowship awards from sponsors who do not have their own indirect cost policy;
• awards made specifically and solely for support of a conference, seminar, or workshop to be held on the Stony Brook Campus

The date of the most recent Federal Indirect Cost Rate Agreement by the Research Foundations cognizant audit agency, the Department of Health and Human Services, is dated January 19, 2007. Copy of the agreement.