Dear PIs, Business Unit, and Grant Administrators,


A new Facilities and Administrative (F&A) rate agreement used with sponsored projects has been approved by the Department of Health and Human Services (HHS) for fiscal years FY19 – FY21. The new rate agreement extends the current FY18 F&A rates through the FY21 fiscal year. In effect, there are no rate changes until otherwise amended.


Proposal Budgets

Normally there are two cost categories when preparing a sponsored project budget.

The first category, direct costs, fund items such as researchers salaries, associated fringe benefits, equipment, materials, supplies, travel and other cost items that are reasonable, easily identifiable and necessary to perform the scope of work proposed.

The second category, facilities and administrative (F&A) costs, fund other items researchers need in order to conduct their work that cannot be specifically allocated to a single project, like the operating costs of UVM’s research facilities; electricity, heating, air conditioning and other utilities; laboratory safety equipment, information technology, and libraries. In addition, F&A is used to recover the costs of research administration, accounting, integrity, and compliance programs required for the proper stewardship of federal funds.

Given the significance of F&A to the institution, UVM expects full recovery of Facilities and Administrative (F&A) costs associated with extramural funding.

Budgeting for F&A Costs in Proposals

All proposals and agreements for external funding must include full F&A costs by using the appropriate federally approved F&A Rate, in effect at the time of proposal submission, subject to sponsor (normally non-profits) published policies that limit F&A recovery.

SPA’s Prepare Budget webpage is an excellent source for budgeting information and is where you can find our F&A rates and the current rate agreement.


Thank You,


Brian Prindle

Executive Director

Research Administration & Integrity

Office of the Vice President for Research

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