What’s MTDC Mean To Me?

1. What’s MTDC Mean To Me? Alexia Lewis Office of Research & Sponsored Programs September, 2006

2. The Facts • Costs of sponsored programs • Direct Costs • Can be identified specifically with a particular project relatively easily with a high degree of accuracy • F&A, Indirect Costs, Overhead • Incurred for common or joint objectives, cannot be specifically attributed to an individual project

3. New F&A Rate Agreement What Changes? • DHHS rate agreement approved • Was SWF base • Salaries, Wages, Fringes • Now MTDC base • Modified Total Direct Costs • Changes F&A Calculation • F&A = Base x Rate • Rate: • 43.5% On Campus • 26% Off Campus

4. New F&A Rate Agreement What Changes? • CAS now applies • Cost Accounting Standards • Administrative costs included in F&A rate negotiation • Now recovered in F&A • Result: Administrative costs now in F&A portion of budget instead of direct cost portion of budget

5. F&A Calculation • MTDC - key word is Modified • Start with TDC (total direct costs) • Modify by subtracting • Equipment • Tuition • Patient Care • Lease • All but the first $25,000 of each subcontract • Result is the MTDC Base • Apply the F&A rate to this base

6. Example 1st – Build Budget 2nd – Figure the Base & Apply the Rate 3rd – Add Direct + F&A Costs

7. How MTDC Affects CAS • Due to change to MTDC base • Costs that UNF was charging as direct costs are now charged as indirect costs • Called CAS items or expenditures • What’s that mean? • No longer can include the following as line items on budgets

8. What are CAS expenditures? • Administrative or Clerical Salaries • Technical salaries can be directly charged • Postage • Overnight/Shipping costs can be directly charged • Local Telephone • Long distance can be directly charged

9. What are CAS expenditures? • Office Supplies • Research/Lab supplies can be directly charged • Data Processing or Computer Supplies • General Purpose Software • Technical software can be directly charged • Memberships / Subscriptions

10. How do these get paid for? • So… how do PI’s pay for these real and necessary costs? • Use of F&A return to cover administrative costs • New ORSP positions • Department resources • PI’s IPD accounts

11. CAS Exemptions Policy • In specific cases, it may be allowable to directly charge CAS items • UNF Policy • Full federal F&A rate • May or may not be allowable to direct charge CAS items • CAS exemption form needed • Less than full federal F&A rate • Allowable to direct charge CAS items • CAS exemption form needed

12. CAS Exemptions Policy • Policy Bottom Line • No CAS expenditures allowed without approved form on file for each project • Policy Based On • Consistency (OMB Circular A-21) • Avoiding disallowed costs / audit findings & fines

13. CAS Exemption Procedure • Procedure: • CAS Exemption Form completed at proposal stage • ORSP provides • PI completes and routes for approval • Dr. Ebong reviews • Dawn reviews only in Dr. Ebong’s absence • No one else authorized to make decision

14. Is a CAS Exemption Reasonable to request? • ORSP role is to provide guidance • Direct or indirect? • Is it specific to this project? • Is it necessary to perform the research? • How does the university consistently treat the cost?

15. CAS Exemption Form • See last page of hand-out for CAS Exemption Form