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, 2014 through June 30, 2018. The rate is 51.0% for fiscal years 2015 and 2016 and 52.5% for fiscal years 2017 and 2018. The previous F&A rate that expired June 30, 2014 was 51.0%. 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.