New F&A Rate announcement

On July 23, 2021 RIT finalized the F&A rate agreement with the Federal government.  These new F&A rates will be effective for FY21 – FY24 (please see the chart below).  Both SRS and Controller’s websites have been updated. Here is a link to the new rates for F&A, benefits, ITS charges, and tuition rates for use on sponsored projects. 

Why have the F&A rates changed?

The F&A rate is negotiated between RIT and the Department of Health and Human Services Cost Allocation Services who serves as our cognizant agency representing the Federal government.  RIT submitted our F&A rate proposal in March 2020 using base year activities from fiscal year 2019 (July 1, 2018 – June 30, 2019). This is the data from which our rates for organized research, instruction, and other sponsored activities were derived.

Why are the on-campus rates for Organized Research changing over the life of the F&A rate agreement?

RIT’s proposal was delayed in its processing by the Department of Health and Human Services Cost Allocation Services.  As part of the negotiation process RIT subsequently agreed to a phased increase in the Organized Research rate and a decrease in the Instruction and Other Sponsored Activity rates back to FY21.  

When should I start using the new rates in my proposals?

The new rates should be used immediately.  The SRS and Controller’s websites have been updated to reflect the new rates according to the above table.

I am submitting a supplemental proposal for an existing award.  What rates should I use to prepare the budget for this proposal?

Utilize the appropriate rate (i.e. organized research, instruction, or other sponsored activities) for the proposal and the rate applicable to the time period of the proposal.

My application was previously submitted at the 46.5% F&A rate before the notification of the new rates.  Will this rate be honored since the new rate agreement specifies higher rates effective 7/1/21?

1. Based on the Uniform Guidance, awards that were made using the provisional rate must be adjusted to the negotiated rates for the competitive segment that was awarded at the provisional rate.
2. Grants awarded while the provisional rates were in place (7/1/2020 to 6/30/21) will be adjusted to the negotiated rates.  Therefore, an instruction award that started after 7/1/20, will have a rate applied of 48.1% (a decrease from the previous 49.9% rate).  The same is the case for other sponsored activity, which also saw a decrease in the rate beginning FY21.
3. Grants awarded with a start date of 7/1/21 or later, will be subject to the applicable negotiated rates beginning FY22.  Therefore, a new organized research award, will have a rate of 47.5% applied.

How will the F&A rate be applied to an existing grant that has already committed multiple periods of support?

The F&A rate charged will be the rate in effect on the start date of your project and will remain that rate throughout the competitive segment for that award.  A competitive segment is a period of years approved by the sponsor at the time of the award.

How will the F&A rate be applied to existing federal multiyear contracts?

Federal contracts will continue with the current rate until the end of the period of performance as specified in the agreement.  Therefore, if the contract defines a specific F&A rate that is locked into the agreement, that will be the rate which is utilized.

How will the F&A rate be applied to existing non-federal grants?

The rate approved by the sponsor at the time of the award will continue for the remainder of the award period.