Facilities (F) &
Administrative (A)
Costs Rate
UH Manoa MEC
November 14, 2013
Office of Research Services
Purpose of F&A Rate
Reimburse University for facilities and
administrative costs (Indirect Costs) incurred to
support grants and contracts.
Based on incurred expenditures during the
“base year”.
Negotiated every three (3) years with the HHS
Division of Cost Allocation.
FY 2016 ( July 1, 2015 – June 30, 2016) – Next
Base Year
2
F & A Research Rate Formula
3
Last 5 Negotiated F &
A Rates
45.0
41.5
40.0
35.0
36.3
34.9
30.0
25.0
20.3
38.4
21.2
21.2
36.7
Administrative
component
24.0
21.2
Facilities component
20.0
15.0
Negotiated F&A Rate
10.0
5.0
14.6
15.1
17.2
15.5
17.5
FY 1996
FY 1998
FY 2003
FY 2007
FY 2011
Manoa Research On
Campus
-
FY 1996
4
FY 1998
FY 2003 FY 2007
FY 2011
Facilities
14.6
15.1 17.2
15.5
17.5
Administrative
20.3
21.2 21.2
21.2
24.0
Approved Rate
34.9
36.3 38.4
36.7
41.5
60
54.0
53.5
50
50.0
21.2
40
20.2
26.0
Administrative
component
30
Facilities component
20
Negotiated F&A Rate
32.3
29.8
28.0
FY 2003
FY 2007
FY 2011
Last 3 Negotiated F &
A Rates for Kaka‘ako
Research On Campus
10
-
5
- FY 1998
FY 2003
FY 2007
FY 2011
Facilities
32.3
29.8
28.0
Administrative
21.2
20.2
26.0
Approved Rate
53.5
50.0
54.0
60,000,000.0
50,000,000.0
40,000,000.0
Administrative pool
30,000,000.0
Facilities pool
20,000,000.0
Last 5 Base Years F &
A Costs For Manoa
Research On
Campus
10,000,000.0
FY 1996 FY 1998 FY 2003 FY 2007 FY 2011
FY 1996
FY 1998
Facilities pool
N/A
10,536,013
11,446,027
12,991,454
18,013,972
Administrative pool
N/A
17,518,193
21,237,619
26,779,076
35,264,642
N/A
28,054,206
32,683,646
39,770,530
53,278,614
Pool costs
6
FY 2003
FY 2007
FY 2011
16,000,000
14,000,000
12,000,000
10,000,000
Administrative pool
8,000,000
Facilities pool
6,000,000
4,000,000
Last 3 Base Years F &
A Costs for Kaka‘ako
Research On
Campus
2,000,000
FY 1998
FY 2003*
FY 2007
FY 2011
FY 2003*
FY 2011
Facilities pool
3,541,813
2,845,349
7,670,850
Administrative pool
2,324,657
1,928,727
6,785,113
5,866,470
4,774,076
14,455,963
Pool costs
* Figures are based on DCA adjustments of
forecasted data.
7
FY 2007
160,000,000.0
140,000,000.0
120,000,000.0
Facilities pool
100,000,000.0
On campus Research
Base
80,000,000.0
60,000,000.0
On & Off Research
Base
40,000,000.0
Administrative pool
20,000,000.0
Last 5 Base Years F &
A and Base Costs For
On Campus
Research Rate
FY
FY
FY
FY
FY
1996 1998 2003 2007 2011
Research Base = System
wide (Excluding Kaka‘ako)
MTDC Research
Expenditures + Cost Sharing
8
FY 1996
FY 1998
FY 2003
FY 2007
FY 2011
Facilities pool
N/A
10,536,013
11,446,027
12,991,454
18,013,972
Administrative pool
N/A
17,518,193
21,237,619
26,779,076
35,264,642
On campus
N/A
69,455,504
66,546,670
83,815,831
102,936,981
Off campus
N/A
13,468,402
33,630,780
42,610,394
43,999,029
Research base
N/A
82,923,906 100,177,450
126,426,225
146,936,010
25,000,000
20,000,000
15,000,000
Facilities pool
Administrative pool
10,000,000
Kakaako base
5,000,000
-
Last 3 Base Years F &
A and Base Costs
Costs for Kaka‘ako
Research On
Campus
FY 1998 FY 2003* FY 2007 FY 2011
Kaka‘ako Base = Kaka‘ako MTDC
Research Expenditures + Cost
Sharing
9
FY 1998
FY 2003*
FY 2007
FY 2011
Facilities pool
N/A
3,541,813
2,845,349
7,670,850
Administrative pool
* DCA adjustments of
forecasted data.
N/A
2,324,657
1,928,727
6,785,113
On campus
N/A
10,965,365
9,548,151
19,064,799
Off campus
N/A
N/A
N/A
N/A
Kaka‘ako base
N/A
10,965,365
9,548,151
19,064,799
MTDC Calculation
Equipment
Salaries
Capital expenditures
Fringe benefits
Patient care
Materials & supplies
Tuition remission
Services
Rental costs (non-UH space)
Travel
Scholarships & fellowships
(Stipends)
First $25,000 of each Subaward
Portion over first $25,000 of each
subaward
Specialized service facility charges
Not MTDC
10
Sponsored Activities A-21
Functions
11
Research
Training
Other Sponsored Activities
• Research & development
• Research training (esp. if
code space as research)
• University Research Council
seed grants (competitive)
• Teaching or training
• Curriculum development
• Student services
• Service learning
• Performances & exhibitions
• Workshops; conferences;
travel
• Evaluations; clinical trials
• Operations of clinics,
extension services
• Inter-personnel Agreements
(IPAs)
• Equipment acquisition (no
R&D); infrastructure
development
• Vessel operations
Non-Sponsored Activities
OMB A-21 Functions
12
Instruction/Dept Research
Other Institutional
SSF’s
• Credit classes
• Non-credit classes
• Departmental research
• Faculty research and
scholarly activity
• Faculty start-up funds
• Faculty travel
• Non-competitive awards
of university funds
•
•
•
•
•
•
•
•
•
•
•
•
Athletics
Bookstore
Housing
Parking
Transportation services
Recharge centers
Unallowable activities
(e.g. alumni affairs)
SOEST Computing
SOEST Engineering
SOEST Ship Operations
IFA Job Order Services
IFA Mauna Kea Mid-level
Facility
• Laboratory Animal
Services
Unallowable Costs Under
A-21
Memberships in Civic,
Commercial or Social
Organizations
Alumni Activities
Fundraising
Lobbying
Public Relations
Student Activity Costs
Unallowable
13
Facilities Costs Allocation Bases
14
Functional
Space
Survey
• Depreciation
• Offices, labs, meeting rooms
• Equipment
• Interest Expense
•O & M
• Utilities, Custodial Services,
Repairs
FTE Count
and FTE by
Functional
Salaries &
Wages
• Library Books, Periodicals, &
Services
Administrative Costs Allocation Bases
Functional
MTDC
Ratio
• General Admin Chancellor’s Office, GALC,
OHR, Disbursing, Payroll,
ITS
• Dept. Admin – Dean or
Director’s Office, FAs
• Sponsored Projects
Admin – ORS, VPRI, VCR
Functional
MTDC
Ratio
FTE Count
or FTE by
Functional
Salaries &
Wages
15
• Statewide Cost
Allocations
• RCUH administrative
expenses
• Admissions, Financial
Aids,
• Student Health Services,
• Graduate Division
General Administrative Costs
MTDC Allocation Bases
General Administration
2%
3%
1%
5%
Research
16%
Kakaako Res
2%
12%
7%
4%
41%
16
Spons Instruc
Other Spons
Act
Instruc/Dept
Res
Other Instit
Act
Dept/School Administrative
Costs MTDC Allocation Bases
Departmental Administration
6%
27%
Research
Kakaako Res
Spons Instruc
47%
4%
10%
6%
17
Other Spons Act
Instruc/Dept Res
Other Instit Act
Sponsored Project Administrative Costs MTDC Allocation
Bases
Sponsored Projects Administration
14%
Research
24%
55%
Kakaako Res
Spons Instruc
7%
18
Other Spons Act
Additional Costs that
Increase the Research
Base
Cost Sharing
Researcher effort – Key Personnel, PIs,
not paid from grants
Amounts in excess of NIH salary cap
Intramural, competitive awards
19
FY 2013 & FY 2017 Rates
FY 2013
20
FY 2017
Primary Reasons for Rate
Increases FY 2011
Maximus CRIS F&A software increase admin (20.6%  24.0%)
Updated F&A Space Survey for UH Manoa Campus
Claim selected O&M costs by building
New C-MORE Hale – Research intensive building
21
Not permitted or “corrections” made by our HHS Region
Negotiators
Accelerated depreciation for building components – Useful Life not
supported by actual experience
Equipment depreciation by room for moveable equipment – often
not found in room per inventory
Vacant lab space had no concrete plans for extramural research
Space survey adjustment for student use of space
22
Units/Labs Selected By
DHHS Space Site Audit
FY 2003
HIGP - HIG Building
FY 2011
HIGP - HIG Building
Institute for Astronomy - IFA Woodlawn
Institute for Astronomy - IFA Woodlawn
Physics & Astronomy - Watanabe Hall
Physics & Astronomy - Watanabe Hall
Mechanical Engineering- Holmes
Mechanical Engineering - POST
CTAHR - Agricultural Engineering
CTAHR - Gilmore Hall CTAHR - St. John
CTAHR - Agricultural Science Facility
Most labs - Post
Oceanography - Marine Sciences Building
ALL Labs C-MORE
Cell & Molecular Biology - Biomedical Sciences Building Kaka‘ako
All Labs- Biomedical Sciences Building Kaka‘ako
ALL labs Cancer Center building at Kaka‘ako
23
23
Peer Rate Comparison
Institution
24
To
Type
Rate
FY 2011 NSF
Total R&D Rank
Arizona State University
6/30/2016Research
54.50%
62
University of California - Irvine
6/30/2016Research
54.50%
64
Oregon Health Sciences University
6/30/2013Research
54.00%
66
Colorado State University
6/30/2014Research
48.70%
67
University of Hawaii
6/30/2017Research
41.50%
70
14.88
34.29
49.18
F&A Cost Reimbursement FY
2013 for Research
Actual
Full
Unrecovered
Actual Reimbursement $ $34.29 M
Full rate is approximately $49.18 M
Estimated unrecovered $ 14.88 M
25
15.04
19.15
Actual
34.18
Full
F&A Cost Reimbursement FY
2013 for Non-Research
Unrecovered
Actual Reimbursement $15.04 M
Full rate is approximately $34.18 M
Estimated unrecovered $ 19.15 M
26
Timeline
Next rate proposal is due December 31, 2016
The expenditures are based on FY 2016
Any major non-capital renovations must be expended during July
1, 2015 – June 30, 2016.
Space Survey must be completed by 9/30/16
Physical inventory of the research equipment must be completed
by FY 2016
New Building should be occupied within next rate agreement
period (July 1, 2017 to June 30, 2021)
27
Key Factors At UH Base
Federal sequestration and sunset of ARRA may lower the
FY 2016 research expenditures base
General funds or RTRF research expenditures are included
in the base; avoid putting Non-extramural funds in base
Most UH research faculty are not paid from grants. Thus,
lower S & W to allocate or justify research use of space.
In addition, we get penalized by having to impute a
minimum effort for research faculty in the base
28
Short Term Strategy
Admin component
Facilities component
• Look at possibilities to get over the
26.0% admin cap
• For example: Increase research
admin support in the field
• Maintain UHM space survey &
expand to other campuses
• Prioritize major, non-capitalized
repairs for research intensive
buildings in FY 2016
• Identifying major fixed
equipment by room (e.g.,
fume hoods) in research
intensive buildings
29
29
Long Term Strategy
New research building investment and/or reconfiguration plans (e.g., concentrate
extramurally funded research in high cost buildings)
Follow renewal and replacement plan for existing facilities, which would support
accelerated depreciation
Maintain and update space usage plan and space survey as usage changes
Invest in Research Admin Support Staff in the field
30
How spending impacts the rate
Spending on numerator
(a.k.a. “pool”) costs tends to
increase rates. (Facilities and
Administrative Costs Pool)
Spending on denominator
(a.k.a. “base”) costs tends to
decrease rates
31
Examples of Cost Impact
(Personnel)
Description
Where it goes
Faculty or technical staff paid from G- Instruction/Departmental Research
funds or RTRF
Reduce MTDC Allocation for
Organized Research
32
Research administrative faculty &
staff paid from G-funds or RTRF
Departmental Administration Pool
Faculty, technical or administrative
staff paid from grants or cost shared
from G-funds or RTRF
Organized Research Base
Examples of Cost Impact
(Supplies & Travel)
33
Description
Where it goes
Scientific supplies or conference
travel purchased on G-funds or RTRF
Instruction/Departmental Research
Reduce MTDC Allocation for
Organized Research
Scientific supplies or conference
travel purchased on grants or cost
shared from G-funds or RTRF
Organized Research Base
Research administration conference
travel paid on G-funds or RTRF
Departmental Administration Pool
Examples of Cost Impact
(Equipment)
Description
Where it goes
Scientific equipment purchased on G- Equipment Depreciation Pool
funds or RTRF
Scientific equipment purchased on
NOT RECOVERABLE
grants or cost shared from G-funds or
RTRF
34
Examples of Cost Impact
(Buildings or Major
Renovations)
35
Description
Where it goes
Administrative buildings
Recoverable, if used mostly for
sponsored projects administration
Athletic facilities
NOT RECOVERABLE
Classrooms, including class labs
Mostly UNRECOVERABLE
Dormitories
NOT RECOVERABLE
Libraries
Mostly UNRECOVERABLE
Parking structures
Mostly UNRECOVERABLE
Research buildings
Recoverable, if used mostly for
extramural research
Mahalo!
36