The F

1
The FA Humpty Dumpty Putting the Pieces
Together(Insights for the Departmental
Administrator)

• National Council of University Research
  Administrators
• Region VI-VII Meeting
• April 2005

2
Session Panelists

• Gary Chaffins - Director, Office of Research
  Services Administration, University of Oregon
• Stuart Laing Manager, Cost Analysis Office for
  Research and Sponsored Projects Administration,
  Arizona State University

3
Facilities Administrative Costs

• Topics
• F A rates - Huh?
• Departmental Involvement -You mean Im involved?
• FA Recovery Is it worth the effort?

4
F A RatesWhat are they?
5
Facilities Administrative Costs

• The Rate is really multiple rates added
  together example
• Research rate components On Campus
  Off
• Building use 2.7 points
• Equipment use 3.6 points
• Operations Maintenance
  15.3 points
• Library 2.4 points
• General Administration 6.2 points 6.2
• Department Administration
  14.9 points 14.9
• Sponsored Project Administration 4.4 points
  4.4
• Student Services Administration .5 points
  .5
• Total 50.0 points 26.0
• Administration components are capped at 26.
• Points a.k.a. percent.

6
Geez this session is going to be worse than I
thought!
7
Facilities Administrative Costs

• Key Rate Components Heavily Dependent on
  Department Information.
• Research rate components On Campus
  Off
• Building use 2.7 points
• Equipment use 3.6 points
• Operations Maintenance
  15.3 points
• Library 2.4 points
• General Administration 6.2 points 6.2
• Department Administration
  14.9 points 14.9
• Sponsored Project Administration 4.4 points
  4.4
• Student Services Administration .5 points
  .5
• Total 50.0 points 26.0
• Total from Key Department data 36.5 points
  14.9

8
Is it getting Better?
9
FACILITIES ADMINISTRATIVE COST CALCULATION
OVERVIEW
Cross Allocations
1 Population including students/FTE of
employees 2 Generally allocated to the
Instruction function
10
Nope
11
Departmental Involvement and Impact
12
Departmental Involvement and Impact

• Department personnel usually provide basic data
  for Rate preparation through
• Space utilization reports
• Equipment inventories
• Expense classification/allocation
• Activity/Effort Report processing

13
Space Utilization Reports

• Space is not the final frontier, but probably the
  most important statistic used in the FA rate.
• The following cost pools use space as their
  allocation method.
• Building Depreciation
• Equipment Depreciation
• Operations and Maintenance
• Interest

14
Are you lost yet????
15
Space Utilization Reports

• It is critical that the departmental space
  coordinator know their department space, how
  generally how its used, and how it should be
  coded.
• No single person should decide how each room is
  being used, but the space coordinator should walk
  the space and talk to the occupant.

16
Space Utilization Reports

• A room that is 100 Organized Research (OR) with
  1,000 square feet would equate to 1,000 square
  feet of OR space.
• Care should be taken not to code rooms
  incorrectly, one issue - 100 Organized Research
  Labs. Instruction does go on in labs.

17
Equipment Inventories

• Equipment used by the university is depreciated
  depending on the capitalization threshold.
• Equipment being depreciated is calculated into
  the FA rate proposal.
• It is critical that each piece of equipment be
  mapped to a room, so depreciation can be
  allocated to the activities conducted in that
  room.

18
Expense classification/allocation

• How can you assist in this process?
• Each expense during a Base Year is used to
  calculate the FA rate.
• It is critical that each expense be coded
  correctly in your financial system.
• Cost transfers must be completed by June, 30.
  Critical correct cost on correct account.

19
Activity/Effort Reporting

• Not only is this a hot topic in the eyes of A-133
  Auditors and Federal Sponsors, but it is used in
  the FA rate.
• You must include in the base (OR, Instruction,
  Other) all the MTDC Expenditures and Cost Share.
• PI Effort used as Cost Share is documented on the
  Effort Reports.

20
Activity/Effort Reporting

• Certifying Effort validates the expense to the
  sponsored account.
• Some Institutions still use Effort reports as a
  method to calculate the DA cost pool. You might
  think of switching to the DCE

21
Any questions so far?
22
FA Recovery Is it worth the effort?
23
Simple Answer..YES!!
24
A Point is a Point

• A point is a percent of the FA rate. So 50 is
  50 points.
• A point to a University can range from 200K to
  well over 1M per year worth of recovery.

25
FA Recovery

• Institutions have unrestricted use of FA
  recovery (except those listed in Exhibit A of
  A-21).
• Pay for Buildings, Equipment, Cost Share etc.
• Return portions to the Colleges and Departments
  to help cover Administrative costs.

26
The Problem Identify the Direct and the FA
Costs

• Direct FA
• X X
• X X
• X X
• X X
• X X
• X X
• X X
• X X
• X X
• X X

• Expense type
• Salaries Wages
• Fringe benefits
• Services
• Supplies
• Travel
• Equipment
• Subcontracts
• Interest
• Rent
• Utilities

27
Facilities Administrative Costs (Order of
Distribution)

• Depreciation and Use Allowances
• Operation and Maintenance Expenses
• General Administration Expense
• Departmental Administration
• Sponsored Projects Administration
• Student Administration and Services
• Library
• Instruction
• Organized Research
• Other Sponsored Programs
• Other Institutional Activities

28
FA Recovery- The Institutional Perspective
29
Nows The Time For Some Real Discussion...