Yale F&A Rate Agreement: Understanding the Indirect Cost Rate for Research Grants

If you are a researcher or part of a research team at Yale University, you may have heard of the F&A rate agreement. But what exactly is it and how does it affect your research projects?

F&A stands for Facilities and Administrative costs, which are also known as indirect costs. These refer to the expenses incurred by the university in supporting research activities, such as utilities, maintenance, and administrative staff salaries. The F&A rate agreement is a formal agreement between Yale University and the federal government that determines the indirect cost rate applied to research grants.

In 2019, Yale University negotiated a new F&A rate agreement with the federal government, which was effective from July 1, 2019. Under the new agreement, the F&A rate for research grants and contracts is set at 56.5% of modified total direct costs (MTDC).

MTDC refers to all direct costs of a research project, minus specific exclusions such as equipment, tuition, and participant support costs. For example, if you have a research project with a total direct cost of $100,000, but $10,000 of those costs are excluded from the MTDC calculation, then the F&A rate will be applied to the remaining $90,000 ($100,000 – $10,000).

It is important to note that the F&A rate is not a fixed percentage for all research projects. The rate may vary depending on the type of research, sponsor, and location of the research activities. For example, the F&A rate for clinical trials may be different from that for basic research projects.

The F&A rate agreement is significant because it affects the total amount of funding available for research projects. When submitting a grant application, the F&A rate is factored into the budget calculation, and a lower F&A rate may mean that the project can allocate more funding towards direct costs such as salaries, supplies, and equipment.

In summary, the F&A rate agreement is a crucial component of Yale University`s research funding strategy. By negotiating favorable F&A rates with the federal government, the university can support its research endeavors and attract more funding opportunities for its researchers. Understanding the F&A rate and how it is calculated is essential for researchers to plan their budgets and maximize their resources for successful research outcomes.