Office of Research, Grants and Contracts

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General Policies, Procedures & Forms

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. Effective 7/1/09, NKU's federally negotiated rate for F&A is 35.4% of modified total direct costs for on-campus programs.
  • 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 Research/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 Research/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 Research/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 Research/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.