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Financial Information and Services

TO: Deans, Officers, Directors, Chairs, and Faculty
FROM: William J. Hogan, Jr., Comptroller
SUBJECT: Federal Facilities and Administrative Cost Rates
DATE: December 4, 1997

The University has reached an agreement with the Department of Health and Human Services (DHHS) that establishes the following predetermined facilities and administrative cost rates (i.e., indirect cost rates) for the fiscal years 1998-99, 1999-2000, 2000-2001:



2000 2001
Research 51% 51% 51%
Instruction 51% 51% 51%
Other Sponsored Activities  (OSA) 45% 45% 45%
Off-Campus (Research/Instruction/OSA) 26% 26% 26%

All rates are calculated against Modified Total Direct Cost (MTDC). The MTDC base, which is the same in the new agreement as in the previous agreement, includes salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract. Specifically excluded from the MTDC base are equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowships, Physical Sciences Division Central Shop charges, Animal Care expenses and the portion of each subgrant and subcontract in excess of $25,000.