FY21 Fringe Rates and Benefits Analysis for Research Grants
Explore the newly negotiated FY21 fringe rates for grants, historical comparisons, and the treatment of fringe benefits on grants per Uniform Guidance. The comprehensive analysis includes details on the increase in rates to recover deficits, benefits included in the fringe rates, and the process of negotiating fringe rates based on actual costs. Maximus Consulting's role in negotiating with DHHS is highlighted, emphasizing the transition of data collection from the Banner system to Workday for the new agreement.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Division of Research Financial Management FY2021 Fringe Rates on Grants Presented September 2020
New Fringe Rate Agreement for FY21 FY21 Fringe Rates for Grants Job Family 30.00% 40.50% (a) 53.50% (b) 9.00% 2.10% 0.00% Faculty and PostDocs AMP SP OPS non FICA Alternative OPS FICA Alternative Students (a) Increased to additionally recover $760K for each of the next three years. As of FY19, a deficit of $2.3 million. (b) Increased to additionally recover $1.2 million for each of the next three years. As of FY19, a deficit of $3.5 million.
Benefits included in FY21 Fringe Rates Faculty, PostDocs, AMP & SP FICA Retirement Worker s Compensation Unemployment Compensation Health Insurance Life Insurance Short-Term Disability Leave Terminal Leave
Historical Grant Fringe Rates per Negotiated Agreements Job Family Current Rate FY21 30.00% 40.50% 53.50% Separated 9.00% 2.10% 0.00% Previous Rate FY13 29.4% 32.20% 43.50% 7.65% N/A N/A N/A Faculty & PostDocs (a) AMP SP OPS OPS Non FICA Alternative OPS FICA Alternative Students (a) For these fringe rates to apply, PostDocs in the past would have been hired into faculty, or the newer PostDoctoral Fellow, job family.
Treatment of Fringe Benefits on Grants Regulated by Uniform Guidance - 2 CFR 200.431 - Compensation - fringe benefits Treated as compensation in addition to regular Salaries & Wages 2 methods to charge fringes: Specifically Identified per the Individual or Fringe Rates Rates limited to those negotiated with Department of Health and Human Services (DHHS) Fringe Rates charged to federal awards must be equitably based on actual costs for the entire University Multiple-year rates in past agreements Current FY21 rates based on FY19 actual costs and prior year surplus/deficits New rate proposal to be submitted by 12/31/20 for FY22 based on FY20 actuals May result in a multiple-year agreement (predetermine rates similar to F&A rates) May elect to negotiate annually (fixed rates carry-forward)
Fringe Rate Proposal Maximus Consulting Hired Expert at negotiating with DHHS Since last agreement signed in 2012, knew data would be challenging Last Agreement data collected from Banner system New Agreement data would be drawn from Workday DHHS would most likely require multiple-year analysis
Fringe Proposal for FY21 Rates Proposal to DHHS that resulted in FY21 Fringe Rates included: FY17-FY19 data analysis required to True-up (A review of Actual Costs and Recoveries) Compensation: (Fringes and Salaries & Wages) reconcilable to Financial Statements Determine under/over recoveries: What was charged via rates and actual costs Terminal Leave Analysis All above combined into Fringe Benefits True-Up & Rate Setting for FY21 FAU under recovered in the amount of $2 million for the 3 year period Allowed to include the under recovery over 3 years ($0.7 million each year) effective FY21
Fringe Proposal For FY22 Rates Proposal to DHHS for FY22 Fringe Rates to include: True-Up of FY20 Rates to Actuals + prior years carryforwards Comparison of FY20 actual fringe costs to the FY20 Fringe rates charged. Differences will be absorbed in rates proposed for FY22 which will also include year 2 of the aforementioned under recovery.
Projected Rates Requested in Proposal Compensation Salaries & Wages Actuals
Assumptions included in true-up table Assumptions Made in Analysis include: Inflation factors were applied to all job families for projected FY21 fringe rates. For all job families except OPS, inflation factors were determined by taking the average increases of FY18 over FY17 and FY19 over FY18 actual costs. Factors used for OPS included only FY19 over FY18 costs. Terminal Leave was calculated based on historical expenses and recovery of sponsored funds only.
Projected Rates Requested in Proposal Backing into the Projected FY21 Fringe Rates submitted in the Proposal
Fringe Rates Requested vs Negotiated Rates Awarded Job Family Rate Requested Negotiated Rate Awarded 30.00% 40.50% 53.50% 9.00% Faculty/PostDocs AMP SP OPS Non FICA Alternative OPS FICA Alternative OPS - Students 29.86% 40.56% 53.60% 8.98% 2.08% 0.00% 2.10% 0.00%
Thanks for inviting me to talk about the Fringe Rates charged to Grants If I can be of further assistance: Lynn Asseff Assistant Vice President, Financial Management lasseff@fau.edu
