Step 2: Identify the Total Cost of the Project
5 F&A Costs
Indirect – F&A
Administrative costs of the day-to-day operation.
- percentage of the bookkeeper’s salary
- cost of of facility
- electricity, heat, building maintenance
- the formula is usually based on federally negotiated indirect cost rate
F&A Costs
- F&A costs are not a just a charge the FHSU adds to proposals to make extra money.
- Rates are negotiated with a federal agency.
- F&A costs must be requested
F&A Waivers
- Must request permission to waive or reduce the F&A rate for a proposal.
- If the agency has a formal, written policy reducing or disallowing F&A costs, include documentation.
- Waiver request should be included with the internal approval
Non-Federal Budgets
When Non-federal sponsors, such as foundations and non-profits, do not allow inclusion of F&A costs or include F&A at a greatly reduced rate, we may be able to include certain costs (that are normally considered F&A) as direct costs in our request
- Administrative/Clerical Salaries
- Postage
- Photocopy Costs
- Local Phone Service
Cost Sharing and Matching
The terms are usually used interchangeably:
Cost Sharing – agencies require that some part of the cost of a project be borne by the applicant institution.
Matching – Commitments by the university to spend its funds in a certain proportion to funds provided by the granting agency.
In kind/match/cost share
Costs of the project not paid by the grant:
- Mandatory vs. Voluntary
- Donated services or property
- In Kind – salaries/fringe, supplies
- Unrecovered indirect – with approval from funder
- Cash
- Third party contributions
- The value of volunteers
Mandatory Cost Sharing
Do NOT offer cost sharing unless required by the funding agency.
- Don’t offer more than is required!
- Do not quantify FHSU commitment in budget or elsewhere in proposal—this is cost sharing and must be treated as such!
- Some agencies (NSF) do not allow cost sharing
Criteria for Cost Sharing
The cost must meet all of the following criteria to be allowed as cost sharing:
- Verifiable – must track
- not counted as cost sharing on another project,
- necessary for the project,
- allowable under the terms of the award, and
- not paid with federal funds
- must be documented and auditable!!!
Document Cost Sharing
- Provide itemized description of costs.
- Identify the sources:
- For cash contributions (i.e. salary, fringe benefits) identify budget number(s) & provide signature(s).
- For in-kind contributions (i.e. discount on rental of conference facilities), include the basis for value used.
- For third party contributions (i.e. salary of subcontractor), provide a letter of commitment with itemized description of costs.
