Fiscal Years 25 - 27 F&A Guidance
Starting Fiscal Year (FY) 25 the Facilities and Administrative (F&A) rates have been increased incrementally thru FY 27.
Proposal Guidance:
All UAccess Research (UAR) proposals initiated as of April 15th, 2024 with proposal types of 1 - New, 2 - Resubmission, 3 – Renewal, and 5 – Revision must be calculated using the new F&A rates. However, campus is encouraged to start using the new rates immediately.
Award Guidance:
Awards associated with Research proposals initiated prior to 4/15/24 will be grandfathered at the existing Research F&A rate. New awards and increments/modifications/supplements associated with Research proposals initiated after 4/15/24 will be established with the new Research F&A rate(s). Awards associated with Instruction and Other Sponsored Activity proposals initiated before 4/15/24 will automatically be converted to the respective decreased F&A rate as of 7/1/24.
The following table is a representation of the proposal Period of Performance and the corresponding federally negotiated rates applicable to that timeframe:
| Period of Performance | Research (MTDC) | Instruction (MTDC) | Other Sponsored Activity (MTDC) |
|---|---|---|---|
| 07/01/2024 - 06/30/2025 | 54.50% | 40.0% | 38.0% |
| 07/01/2025 - 06/30/2026 | 55.0% | 40.0% | 38.0% |
| 07/01/2026 - 06/30/2027 | 55.50% | 40.0% | 38.0% |
| 07/01/2027 - until amended | 55.50% | 40.0% | 38.0% |
Some sponsors require a mention of the UA's F&A rates, please see the below example to use in such submissions:
INDIRECT COSTS
The University of Arizona indirect cost rate for on-campus research is 54.5% for FY25, 55% for FY26 and 55.5% for FY27 of Modified Total Direct Costs (MTDC). Equipment, capital expenditures, patient care costs, tuition remission, rental costs, participant support, scholarships and fellowships, and the portion of subcontracts in excess of $25,000 are excluded from MTDC base used to calculate indirect costs. A copy of the University’s DHHS-approved rate agreement dated January 23, 2024, is available online.
An Excel budget template has been created to assist in calculating the laddered F&A rates:
The Industry rates, which is 9% added to indirect costs when working with Industry and Foreign Governments, will go into effect starting July 1, 2024. Instead of using a laddered approach, please use the FY 27 rates (55.5%) plus the 9% (55.5% + 9% = 64.5%).
Please list all corresponding rates applied in the proposal.
For example:
| Supplemental Info | |
|---|---|
| F&A Information | |
| F&A Rate % (ex: 53/53.5): | 54.5/55.0/55.5 |
This award will be grandfathered at 53.5%. The proposal for the full 5-year project period was proposed at this rate prior to 3/4/24.
The supplement is for new funds not previously proposed/routed. Therefore, this must be routed at the rates shown in the new rate agreement unless there is a sponsor stipulated rate for the supplement. If funded, the supplement will be accounted for in a sibling account due to the F&A rate differing from the existing award funds.
|
07/01/2024 - 06/30/2025 |
54.50% |
|
07/01/2025 - 06/30/2026 |
55.00% |
|
07/01/2026 - 06/30/2027 |
55.50% |
|
07/01/2027 - until amended |
55.50% |
The F&A rate will automatically be updated to 40% effective 7/1/24 per the new rate agreement. If there are any future increments/modifications/supplements to the award, route the proposal at 40% MTDC unless there is a sponsor stipulated rate.
Other Sponsored Activity (OSA) awards will be handled in the same manner. On-campus OSA awards currently at 47% will automatically be updated to 38% effective 7/1/24 per the new rate agreement. If there are any future increments/modifications/supplements to the award, route the proposal at 38% MTDC unless there is a sponsor stipulated rate.
Excel Template for FY 25- FY27 Rates
Last updated: Thursday, July 11, 2024