Calculating the Facilities and Administration (F&A) rate on a Non-budgeted Sponsored Program

Calculating the Facilities and Administration (F&A) rate on a Non-Budgeted Sponsored Program

A non-budgeted Sponsored Program encompasses the entire award and is not budgeted by account code pools.  The full dollar amount of the award (including the Facilities and Administration (F&A) fee) is loaded to a singular expense account code (500000).

To properly account for the F&A fee, you will need to separate it from the full dollar amount of the award.

To do this divide the full dollar amount by 1.(rate).  

For example:  Dr. Jones has received an award from a sponsor in which the F&A rate is 56%.  The total of the award is $529,696.00.  Therefore, divide $529,696.00 by 1.56.  The F&A rate is $339,548.72.

If you are using BA, you will set up an encumbrance for the F&A.