Grant Budgets: Calculating F&A

Grant Budgets:Calculating F&A May 21, 2009

What is F&A? • Facilities and Administrative Costs – aka indirect costs. F&A covers institutional costs that could not easily be assigned to a particular project. http://www.utmem.edu/research/research_administration/docs/F&A%20info%20for%20web%207%2014%2008.pdf

F&A Rate(s) • F&A rate for Memphis – on-campus: 48% MTDC • F&A rate for Memphis – off-campus: 26% MTDC • F&A rate for GSM (COM-Knoxville): 38% MTDC • F&A rate for COM – Chattanooga – n/a • Rate Agreements: http://www.utmem.edu/research/research_administration/FAQ.php#budgets

What is MTDC? • Modified Total Direct Costs: • Total Direct Costs minus equipment, patient care, rent, that portion of each subaward over the first $25K

How do I calculate MTDC? • Total Direct Costs (personnel salaries, fringe benefits, supplies, equipment, subawards, consultants, etc.) • MINUS equipment ($5K and over), patient care costs, that portion of subs over $25K, rent) • Equals MTDC

Example – Modular Budget, no equipment or subs • Total Direct Costs = $250,000 • Equipment 0 • Modified Total Direct Costs = $250,000 • x 48% • = F&A Costs = $120,000 • TDC + F&A = Total Costs = $370,000

Sample w/equipment • Total Direct Costs = $250,000 • Minus Equipment $50,000 • Modified Total Direct Costs = $200,000 • x 48% • = F&A Costs = $96,000 • TDC + F&A = Total Costs = $346,000

Sample Mod w/One Subaward • Direct Costs, including Sub TC of $105,000 • less Sub F&A = $250,000 • Sub F&A $30,000 • Total Direct Costs $280,000 • Minus Subaward over $25K = $80,000 • Modified Total Direct Costs = $200,000 • x 48% • = UT F&A = $96,000 • TDC + F&A = Total Costs = $376,000

Sample Mod w/Equipment & Subaward under $25K • Direct Costs, including Sub DC of $12,000, less Sub F&A = $250,000 • Sub F&A 5,000 • Total Direct Costs $255,000 • Minus Equipment 25,000 • (Subaward $12,000 DC, 5,000F&A) • Modified Total Direct Costs = $230,000 • x 48% • = UT F&A Costs = $110,400 • Total Costs = $365,400

Sample w/Equipment & Subaward over $25K – Modular Grant • Direct Costs, including Sub TC of $30K, less Sub F&A = $250,000 • Sub F&A - $10,000 • Total Direct Costs $260,000 • Minus Equipment 25,000 • Minus Sub TC over $25K 5,000 • Modified Total Direct Costs = $230,000 • x 48% • = F&A Costs = $110,400 • Total Costs $370,400

Sample w/Equipment & Subaward over $25K ($50K) – Non-Modular Grant • Total Direct Costs = $350,000 • Minus Equipment 25,000 • (Subaward total costs = 50,000) • Minus Sub TC over $25K 25,000 • Modified Total Direct Costs = $300,000 • x 48% • = F&A Costs = $144,000 • TDC + F&A = Total Costs = $494,000

Sample Multi-year Modular • Year 01 Year 02 Year 03 • Direct less sub F&A $250,000 $250,000 $250,000 • Sub1 F&A (50K TC) 10,000 10,000 10,000 • Sub2F&A (17K TC) 5,000 5,000 5,000 • Sub3 F&A (10KTC) 0 0 0 • Total Direct Costs $265,000 $265,000 $265,000 • Equip 10,000 25,000 0 • Sub1 TC over $25K 25,000 (50K) 50,000 (50K) 50,000 (50K) • Sub2 TC over $25K 0 ($17K) 9,000 ($17K)17,000 (17K) • Sub3 TC over $25K 0 ($10K) 0 ($10K) 5,000 (10K) • MTDC = $230,000 $181,000 $193,000 • UT F&A $110,400 $86,880 $92,640 • Total Costs $375,500 $351,880 $357,640

Sample Multi-Year Detailed Budget Year 01 Year 02 Year 03 • Direct $350,000 $350,000 $350,000 • Equip 10,000 25,000 0 • Sub1 over$25K 25,000 (50K) 50,000 (50K) 50,000(50K) • Sub2 over$25K 0 (17K) 9,000 (17K) 17,000(17K) • Sub3 over$25K 0 (10K) 0 (10K) 5,000(10K) • MTDC = $315,000 $266,000 $278,000 • UT F&A 151,200 127,680 133,440 • Total Costs $501,200 $477,680 $483,440

ORA Contacts • egrants@utmem.edu • Connie Bozant – 901 448-4188 • Ginny Geer 901 448-1668 • vgeer@utmem.edu • Melanie Luchs – 901 448-3303 • mluchs@utmem.edu • Debbie Smith – 901 448-4823 • dsmith@utmem.edu

ORA Web Site • http://www.utmem.edu/research/research_administration/

Grant Budgets: Calculating F&A