Office of Research, Grants and Contracts Policies, Procedures and Forms

Policy for Charging & Distributing F&A on Grants or Contracts

“F&A Costs” refers to those costs for “Facilities and Administrative Expenses.” In previous years, they were called “overhead returns” or “indirect costs.”

Grants

In general, when F&A costs are allowed by the funding agency, the budget submitted will include full, allowable F&A costs.
If the funding agency or the individual funding program does not pay F&A, the charges will be waived.
If there is compelling evidence that reducing or waiving F&A will increase the likelihood of funding, the Associate Provost for Outreach/Dean of Graduate Studies may approve an exception to standard policy.

Contracts

Contracts will include F&A costs of 10-20% of the total cost of the budget with the exact percentage determined by the project director in consultation with the staff of RG&C. These costs are applied to the budget regardless of whether the contract is processed through The NKU Research Foundation or directly to the University.
When there is compelling evidence to justify reducing or waiving F&A on a contract, the Associate Provost for Outreach/Dean of Graduate Studies may approve an exception to standard policy.

Distribution of F&A

Distribution of F&A monies is governed by the “NKU Policy on the Distribution of F&A Funds and Grant/Contract-Related Salary Savings.”
The current policy divides F&A dollars as follows:
    45% to Deans/Administrators
    45% to Research Grants & Contracts/ NKURF
    10% to General Fund
There are two exceptions to the Distribution of F&A Funds:

– There are occasions when a center or institute needs to retain its F&A dollars in order to facilitate its becoming self-supporting. Just like municipalities allow for tax abatement in order to promote and retain certain businesses, the University will allow for F&A abatement when it wishes to assist with the development of a center or institute. In order to qualify for such status, the center or institute will submit a written request to the Associate Provost for Outreach/Dean of Graduate Studies. The request, which must be approved by the college dean, should include the following: name of the center; justification for the abatement; duration of the abatement; and dollar limit on the abatement. Abatement requests will be reviewed on a rolling basis by a committee including the Associate Provost for Outreach/Dean of Graduate Studies (or his/her designee), a representative from the budget office, the Comptroller (or his/her designee), the Assistant Vice President for Academic Affairs, and a dean or associate dean appointed annually by the Provost.

– When F&A dollars are collected on contracts valued at less than $2,500 and completed in less than one month, the distribution of F&A will be determined by the department and faculty member performing the work.


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	Facilities and Administrative Expenses Policy for Charging & Distributing F&A on Grants or Contracts “F&A Costs” refers to those costs for “Facilities and Administrative Expenses.” In previous years, they were called “overhead returns” or “indirect costs.” Grants In general, when F&A costs are allowed by the funding agency, the budget submitted will include full, allowable F&A costs. If the funding agency or the individual funding program does not pay F&A, the charges will be waived. If there is compelling evidence that reducing or waiving F&A will increase the likelihood of funding, the Associate Provost for Outreach/Dean of Graduate Studies may approve an exception to standard policy. Contracts Contracts will include F&A costs of 10-20% of the total cost of the budget with the exact percentage determined by the project director in consultation with the staff of RG&C. These costs are applied to the budget regardless of whether the contract is processed through The NKU Research Foundation or directly to the University. When there is compelling evidence to justify reducing or waiving F&A on a contract, the Associate Provost for Outreach/Dean of Graduate Studies may approve an exception to standard policy. Distribution of F&A Distribution of F&A monies is governed by the “NKU Policy on the Distribution of F&A Funds and Grant/Contract-Related Salary Savings.” The current policy divides F&A dollars as follows: 45% to Deans/Administrators 45% to Research Grants & Contracts/ NKURF 10% to General Fund There are two exceptions to the Distribution of F&A Funds: – There are occasions when a center or institute needs to retain its F&A dollars in order to facilitate its becoming self-supporting. Just like municipalities allow for tax abatement in order to promote and retain certain businesses, the University will allow for F&A abatement when it wishes to assist with the development of a center or institute. In order to qualify for such status, the center or institute will submit a written request to the Associate Provost for Outreach/Dean of Graduate Studies. The request, which must be approved by the college dean, should include the following: name of the center; justification for the abatement; duration of the abatement; and dollar limit on the abatement. Abatement requests will be reviewed on a rolling basis by a committee including the Associate Provost for Outreach/Dean of Graduate Studies (or his/her designee), a representative from the budget office, the Comptroller (or his/her designee), the Assistant Vice President for Academic Affairs, and a dean or associate dean appointed annually by the Provost. – When F&A dollars are collected on contracts valued at less than $2,500 and completed in less than one month, the distribution of F&A will be determined by the department and faculty member performing the work. Return to top
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