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.
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