How to distinguish F&A costs from Fringe Rates
FACILITIES AND ADMINISTRATIVE COSTS (F&A), also known as Indirect Costs, are the expenses incurred for general University operations while conducting a sponsored project. (Ex: Building maintenance costs)
- F&A rates are expressed as a percentage of direct costs.
- The University negotiates the rates approved for use with Federal grants, contracts and other agreements with the DHHS acting on behalf of all federal agencies.
- Federal F&A costs are calculated based on the project’s Modified Total Direct Costs (MTDC). Be sure to apply the correct F&A percentage to each JHU fiscal year, as they may change from year to year.
FRINGE BENEFITS are applicable to all University salaries and wages and include benefits attributed to individual employees (Ex: Health Insurance).
- The University has negotiated a fringe benefit rate with the Department of Health and Human Services (DHHS).
- When preparing a sponsored project proposal budget in Coeus, calculations for the sponsor’s contribution to employee fringe benefits should be computed using the fringe benefit rate found on the general budget form.
Facilities and Administrative Costs are negotiated with the federal government. Our current F&A and Fringe Rate Agreement can be found here.
How to apply and calculate F&A and Fringe
F&A – Facilities and Administrative Rate
Facilities and Administrative Costs are negotiated with the federal government. Our current F&A and Fringe Rate Agreement can be found here.
Federal Sponsors
F&A Rate applies to the Modified Total Direct Costs unless the funding opportunity announcement specifies otherwise
Calculating Modified Total Direct Costs
MTDC = Total Direct Costs minus the following:
- Equipment
- Capital expenditures (includes alterations and renovations)
- Patient Care
- Student Tuition remission
- Rental costs of off-site facilities
- The portion of individual subawards over $25,000
- Scholarships and Fellowships
Non-federal Sponsors
F&A rates for non-federal sponsors vary widely.F&A costs for private awards should be calculated on Total Direct Costs (TDC)unless the sponsor has written policies exempting certain line items from F&A.
Fringe Rate
Fringe rate is the amount calculated per employee based on present benefits that JHU provides to each employee. Rates vary. Our current F&A and Fringe Rate Agreement can be found here.