As a recipient of federal awards, the University is obligated to comply with costing rules and regulations promulgated by the Office of Management and Budget (OMB) Uniform Guidance, Cost Principles for Education Institutions. These cost principles are rigorously followed by the University in developing its Facilities and Administrative (F&A) rate proposal. Representatives from the Division of Cost Allocation, DHHS Regional Office, located in Dallas, TX, review the University's F&A rate proposal for compliance with applicable federal cost principles.
Approximately every four years the University prepares an F&A rate proposal in accordance with the federal cost principles. The current agreement covers the period July 1, 2018 through June 30, 2022. The rate is 52.5% for fiscal year 2019 and 54.5% for fiscal years 2020 through 2022. The previous F&A rate that expired June 30, 2018 was 52.5%. Different federally-approved rates apply to off-campus projects, training grants, clinical trials and cost sharing arrangements, as has been the case in the past. These rates are multiplied by direct costs of the grant, less equipment and a few other exclusions, to yield the F&A reimbursed amount.