Rate Agreements & Basis Types

Overview

Workday has introduced the concept of Rate Agreement, and while Basis Type is very similar to prior state, both are necessary elements to set up an award in Workday. This webpage defines these elements and explains how each is used. 

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Rate Agreement

In Workday, a grant rate agreement, also known as a Facilities and Administrative (F&A) or indirect cost rate, is a negotiated rate between the University of Washington and the sponsor that determines the percentage of direct costs for awarded funds to be used for funding indirect costs associated with sponsored program awards. These rates are used to calculate the amount of indirect cost that can be charged to a sponsored program award. 

For the University of Washington, Management Accounting and Analysis (MAA), is responsible for submitting the F&A rate proposal to DHHS.  MAA negotiates rates with the Department of Health and Human Services (HHS) approximately every four to six years.  Rates are negotiated and are dependent on the activity type associated with the sponsored program award.

When setting up a new award, GCA reviews the award document to ensure that the correct rate agreement is selected in Workday.  If the sponsor awards an F&A rate that is lower than the negotiated rate, GCA will select the rate agreement that is applicable to the activity type and enter the F&A rate in Workday that matches what the sponsor awarded.

 

Basis Type

In Workday, the Basis Type refers to which direct expenses F&A can be applied to. The most common basis type is “Base 18 Modified Total Direct Costs (MTDC)”, which matches the federal base outlined in the Uniform Guidance. This basis type excludes the following direct costs from F&A: equipment, capital expenditures, charges for patient care, and tuition remission, rental costs, scholarships fellowships, participant support costs, as well as the portion of each subaward in excess of $25,000. 

GCA will create a new basis type when five or more awards have the same basis type. If the basis type does not exist in the SAGE Budget worksheet settings, the Custom type can be used to manually select the object classes the F&A is applicable to. 

F&A Base Types in Workday

The table below details the Basis Types that exist in Workday and the costs that are subject to F&A. 

Basis Type

F&A Basis Type Name

BASE01

01 Salaries and Wages

BASE02

02 Salaries & Wages and Benefits Only

BASE03

03 Salaries & Wages, Supplies, and Benefits Only

BASE04

04 Direct Costs Excluding Tuition & Fees and Fixed Fee - Up to the Amount of IDC Allocation

BASE05

05 Supplies and Equipment only

BASE11

11 Total Direct Costs (TDC) Excluding Fixed Fee

BASE12

12 Direct Costs Excluding Rent, Equipment, and Fixed Fee

BASE13

13 Direct Costs Excluding Travel, Benefits, and Fixed Fee

BASE14

14 Direct Costs Excluding Benefits, Tuition & Fees, and Fixed Fee

BASE15

15 Direct Costs Excluding Equipment, Tuition & Fees, and Fixed Fee

BASE16

16 Direct Costs Excluding Fellow & Trainee Salary, In-Patient, Out-Patient, Vessel Recharge, Subcontracts, Rent, Equipment, Stipends, Tuition & Fees, and Fixed Fee

BASE17

17 Direct Costs Excluding Contract Personnel Services, and Fixed Fee

BASE18

18 Modified Total Direct Cost (MTDC) Excluding Equipment, Capital Expenditures, Patient Care, Tution, Rent, Participant Support, Subcontracts (in excess of 1st $25k)

BASE19

19 Direct Costs Excluding Salary & Wages, Benefits, and Fixed Fee

BASE20

20 Direct Costs Excluding Equipment and Fixed Fee

BASE21

21 Direct Costs Excluding Subcontracts, Outside Services, Equipment and Fixed Fee

BASE22

22 Direct Costs Excluding Subcontracts and Fixed Fee

BASE23

23 Direct Costs Excluding Subcontracts (in excess of 1st $25K), Equipment, Tuition & Fees, and Fixed Fee

BASE24

24 Indirect Costs Up to the Amount of IDC Allocation

BASE26

26 Direct Costs Excluding Equipment, Benefits from PostDoc Rsch Trainees, Benefits from Fellows & Trainees, Tuition & Fees, and Fixed Fee

BASE27

27 Direct Costs Excluding Travel, Equipment, and Fixed Fee

BASE28

28 Direct Costs Excluding PostDoc Trainee Salary & Benefits , Salaries & Benefits from Fellows & Trainees, Stipends, Tuition & Fees, Equipment (Over $5,000), and Fixed Fee

BASE29

29 Total Direct Costs (TDC) Excluding Subcontracts, Equipment, and Fixed Fee

BASE30

30 Direct Costs Excluding Stipends, and Fixed Fee

BASE31

31 Direct Costs Excluding Software, Equipment, Tuition and Fixed Fee

BASE32

32 Direct Costs Excluding PostDoc Trainee Salary & Benefits , Salaries & Benefits from Fellows & Trainees, Subcontracts (in excess of 1st $25K), Equipment, Stipends, Tuition & Fees, and Fixed Fee

BASE33

33 Direct Costs Excluding Tuition & Fees, and Fixed Fee

BASE34

34 Direct Costs Excluding Personal Service Contracts, Subcontracts & Fixed Fee

BASE35

35 Direct Costs Excluding Rent, Fixed Fee

 

Resources

GIM 13: Facilities & Administrative Rates

F&A Rates and Costs | Management Accounting & Analysis

Institutional Facts and Rates - UW Research

Understanding the costs of conducting research – UW Research

Facilities and Administration Overview (UWCF Video)

Facilities & Administrative Costs