Effective November 2010, all F&A costs (also known as indirect costs or IDC) for subcontracts are being calculated automatically in the Financial Accounting System (FAS) and added to F&A expenditures for the primary award (budget) under Account Code 25-99.
In the past, Grant and Contract and Accounting (GCA) manually entered the F&A for subcontracts as journal vouchers (JVs). These JVs appeared in MyFinancial Desktop under Account Code 25-99 as expenditures against your budget.
You will no longer see JVs used to charge F&A costs due on subcontract expenditures. In addition, GCA will no longer create a 37-99 restricted encumbrance for F&A costs due on subcontract expenditures. F&A transactions for subcontracts will be generated every time an invoice is paid on that subcontract up to the amount subject. As a result, you will see more timely and accurate F&A expenditures under Account Code 25-99.