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Attached is a copy of the proposed F&A Rates to begin 7/1/05. They have
only been proposed to our cognizant federal agency (ONR), and are subject
to change based on our negotiations with them. They are proposed to be
effective for a one to two year period, again to be determined by
negotiations with ONR. This table is also available at: http://vpaf.okstate.edu/GCFA/Links.htm
Please forward this to all your faculty and advise them to begin using
these new F&A rates for all proposals with effective dates of 7/1/05 or
after.
Proposals that include these new rates should include an explanatory
footnote, such as "OSU negotiates their F&A rate with the Office of Naval
Research. This is a proposed rate to ONR, and the final negotiated rate
approved by ONR, at the time of award, will be applied if project is
awarded."
The main on-campus rates that you will use are proposed to be:
Research 46.4%
Extension 37.0%
Instruction 54.8%
You will notice that these are reduced a fair amount from the current
rates. This decrease is primarily because the F&A cost pools that are
funded by state appropriations have decreased while the sponsored program
expenditure amounts have increased. The change of the equipment threshold
changing from $500 to $5000 also had an impact.
These rates (or the final approved rates) will be applied to all
existing grant & contract accounts beginning 7/1/05, and could have a
significant impact on those existing accounts. Depending on the terms of
your award &/or the applicable regulations, you could have to obtain
approval for a budget revision because when these new, lower rates are
applied beginning 7/1/05, it could have a significant impact on the
available funds. Also, if you are using waived F&A costs to meet mandatory
cost sharing, then you will need to re-evaluate your cost share commitment
because the waived F&A will be less than what was originally budgeted.
We will keep you informed if we learn of changes to these rates.
Jan
Jan Madole, Manager
OSU Agriculture Sponsored
Programs
241 Agriculture Hall
Oklahoma State University
Stillwater, OK 74078
Ph. 405-744-7196
Fx. 405-744-8863
Email
jkd1703@okstate.edu
F&A Rates Proposed-forFY06
Jan05.xls
