Facilities & Administrative Costs and Recoveries Overview
Facilities & Administrative (F&A) costs are essential expenses in reconciling audited financial statements, with recoveries generated to reimburse the University for a portion of these costs. The negotiation process for F&A rates involves formal preparation and proposal every 3-4 years, aligning with defined cost principles. F&A Rate Calculation includes various cost groups and exclusions, determining component rates for building depreciation, equipment depreciation, interest, and more. The FY2021 F&A rates by components show negotiated rates and proposals for facilities and administrative breakdowns.
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Facilities & Administrative Costs and Recoveries
Facilities & Administrative (F&A) Costs and Recoveries 2 F&A costs are actual expenses that reconcile to the UI audited Financial Statements. F&A recoveries are generated to reimburse the UI for a portion of F&A costs incurred. . Effort is made by Central Administration to return the recoveries to where the expense occurred given actual F&A costs exceed F&A recoveries.
F&A Negotiation Process 3 A formal F&A rate is prepared by the UI and proposed every 3-4 years. Proposal prepared in accordance with cost principles defined in Uniform Guidance (formerly OMB Circular A-21) Direct Negotiation with Federal Govt. Feds review documentation; then perform a site visit Walk space; interview PI s, staff & students FY 2025 is base year for next rate proposal The approved F&A rate is less than actual F&A rate.
F&A Rate Calculation 4 University Financial Statements F&A Cost Groups Direct Cost Groups (Bases) Building Depreciation (F) Instruction and Dept Research (Inst) Equipment Depreciation (F) ORGANIZED RESEARCH (OR) Interest (F) Other Sponsored Activity (OSA) Operations and Maintenance (F) Other Institutional Activity (OIA) General Administration (A) Departmental Administration (A) Sponsored Project Administration (A) Student Service Administration (A) Library (F) Exclusions
5 Building Depreciation F&A Cost Groups Equipment Depreciation Interest Operations and Maintenance General Administration Departmental Administration Sponsored Project Administration Student Service Administration Library Numerator Denominator Inst OSA OIA OR
FY2021F&A Rate by Component 6 Negotiated Rate til FY22 Negotiated Rate beg. FY23 Proposal Uncapped Proposal Capped 5.8% 2.2% Facilities: Building Depreciation (BD) Equipment Depr (ED) Interest (Int) Oper & Maint (O&M) Library (Lib) Subtotal Facility 5.8% 2.2% .5% 23.1% 3.6% 35.2% 4.2% 1.6% 0.7% 18.9% 3.1% 28.5% 4.9% 1.8% 0.4% 19.3% 3.1% 29.5% .5% 23.1% 3.6% 35.2% Administrative: General Admin (GA) Departmental Admin (DA) Sponsored Programs Admin (SPA) Subtotal Admin 6.7% 17.4% 6.1% 15.9% 4.9% 17.1% 6.1% 15.9% 4.4% 28.5% 4.0% 26.0% 4.0% 26.0% 4.0% 26.0% Total F&A Rate 63.7% 61.2% 54.5% 55.5%
7 FY2023 F&A Recoveries versus F&A Overhead Expenditures Total $ 104.19 Recoveries Expenditures $ 142.28 Under Recovery $ (38.09) * Amounts in millions
F&A Recoveries Generated by Each College FY2023 8 Total College/Unit Recoveries $ 13,777,521 $ 225,561 $ 1,929,208 $ 956,860 $ 9,479,060 $ 122,004 $ 59,957,221 $ 685,837 $ 1,497,580 $ 10,032,037 $ 5,528,820 $ 104,191,709 Liberal Arts Business Dentistry Education Engineering Law Medicine Nursing Pharmacy Public Health Non-Collegiate TOTAL
Distribution of Recoveries 9 Effort is made by Central Administration to return the recoveries to where the expense occurred. FY22 = $104.2M Distribution General Education Fund = $68.9M Research Facility Funds = $11.8M UIHC = $4.7M TTI Plant Fund = $10.8M Oakdale Campus = $0.7M Clinical Trials = $4.1M VPR = $2.7 Other = $0.5M
Distribution Recoveries 10 Every $ of recovery is distributed the same in FY23: General Education Fund = 69.22% Research Facility Funds = 11.99% UIHC = 4.78% TTI Plant Fund = 10.93% Oakdale Campus = 0.66% Hygienic Lab = 0.02% VPR = 2.40%
11 Calculation of UIHC Distribution % O&M Total Rate 19.3 55.5 UIHC O&M Total O&M 5,268,490 38,352,497 O&M % of Total Rate UIHC % of Total O&M 34.77% 13.74% O&M % of Total Rate x UIHC % of Total O&M = 4.78%
12 Questions?
