Expenses are one of most important data sets used to develop a facilities and administrative (F&A) or indirect cost proposal. To compile the F&A proposal, all expenses during a "base year" must be assigned to an individual cost pool. (The base year is the fiscal year that forms the basis for the F&A proposal.) These cost pools are based on definitions from OMB Circular A-21 (CFR 2, Part 220) and allow Management Accounting and Analysis (MAA) to correctly classify expenses during development of the F&A proposal. Cost pools assigned to budgets are also an important factor for departments during the F&A Space Survey.
On an ongoing basis, MAA makes an initial determination of cost pools for all active budgets. A report is available through the University's Enterprise Data Warehouse on the Decision Support website. Throughout the base year, MAA asks all academic departments to review and update these cost pool determinations.
Departmental representatives who have first hand knowledge of both the nature of the work supported by each budget and the cost pool definitions should review and update the initial determinations made by MAA.
Departmental representatives begin the process by obtaining a list of all of their active budgets. After thoroughly reviewing and understanding the cost pools below, each budget should then be reviewed to ensure accurate classification.
Three primary factors should be considered by departmental representatives as they review cost pool classifications for accuracy:
- What activities is the budget funding during the FY 2013 fiscal year (July 1, 2012 through June 30, 2013)? Put another way, what is the purpose of the budget?
- How does the purpose or activity map to cost pool definitions below?
- What is the location of the budget (on-campus, off-campus, or a special location)?
If any changes are required, departmental representatives should submit changes along with an explanation for the change to the MAA F&A proposal team. Changes should be submitted to firstname.lastname@example.org.
To see a description of a cost pool listed below, click on it.
- Organized Research
- Other Sponsored Activities
- Scholarships and Fellowships
- Patient Care
- Operation and Maintenance of Facilities
- Other Institutional Activities
Additional Cost Pool Descriptions:
- Instruction Only
- Budgets that only include costs for direct instructional activities only.
- Non-research Training
- All training except for sponsored research training.
- Regional Primate Center - Core (A)
- Core grants (which are organized, separately budgeted and accounted for research activities) of the Regional Primate Center (RPC). These comprise the research base of the RPC F&A rate.
- Regional Primate Center - Non-Core (B) & (C)
- All organized, separately budgeted and accounted for research activities conducted at the Regional Primate Center (RPC) other than the RPC core grants. These comprise the research base for the RPC F&A rate. Non-core (B) are Federally sponsored. Non-core (C) are Non-Federally sponsored.
- Marine Vessel Operations
- All organized, separately budgeted and accounted for research activities of marine vessels operations.
- Public Service/Community Outreach
- University activities that provide service to the community, region, state or nation, within the bounds of the University mission as executed by its departments. These activities are commonly under the headings of community service, continuing education, and service agreements.
- An amount granted by an organization to a student for tuition and other educational expenses. Scholarships are excluded from the F&A proposal, since they are not considered part of MTDC.
- Operations and Maintenance - Buildings
- Operations and Maintenance costs that relate to a specific building, such as for repair or utility costs.
- Building/Property Rent
- Includes the costs of building or property rent.
- Building Interest
- Includes the cost of interest on debt incurred to construct or acquire a building.
- Self-sustaining activities generate revenue sufficient to cover those activities' expenditures. Departmental revenue budgets, recharge and cost centers are examples of a self-sustaining activity.
- Costs that OMB Circular A-21 requires the University to remove when the F&A proposal is prepared. Costs that must be excluded to arrive at Modified Total Direct Costs include: equipment, capital expenditures, tuition remission, stipends, scholarships, and the portion of a sub-contract in excess of $25,000.