The financial system is set up with indirect cost base codes to inform the correct application of F&A. When F&A is calculated, it is applied to those direct cost object codes that are subject to the F&A base. The base code for Modified Total Direct Costs (MTDC) will be changed to reflect that equipment costs under $5,000 for grandfathered budgets are not charged F&A. Only tangible items of personal property (greater or equal to $5,000) that meet the UW definition of equipment should be classified with an object code within the “06” range.
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