FA Space Study and the Role it Plays in Negotiation

1. � National Council of University Research Administrators FRA IX Conference 2008 F&A Space Study and the Role it Plays in Negotiation NCURA�s Financial Research Administration IX: Financial Research Administration in a Climate of Change Tuesday, February 26, 2008 10:30 a.m. � Noon New Orleans

2. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Objective A1. Objective This attachment provides principles for determining the costs applicable to research and development, training, and other sponsored work performed by colleges and universities under grants, contracts, and other agreements with the Federal Government.

3. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1. Major functions of an institution Major functions of an institution refers to instruction, organized research, other sponsored activities and other institutional activities as defined below:

4. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1a. Instruction Instruction means the teaching and training activities on institution Sponsored Instruction Departmental Research

5. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1b. Organized Research All research and development activities that are sponsored by Federal and non Federal agencies and organizations. This term includes activities involving the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.

6. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1b(2). University Research All research and development activities that are separately budgeted and accounted for by the institution under an internal application of institution funds. Maybe included in Instruction if agreed to by the cognizant agency.

7. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1c. Other Sponsored Activities Programs and projects financed by Federal and non Federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples: health service projects and community service projects When undertaken without outside support they may be classified as other institutional activities

8. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms B1d. Other Institutional Activities All activities of an institution except: Instruction, departmental research, organized research and other sponsored activities. F&A Costs activities identified in Section F Specialized service facilities described in Section J47

9. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Definition of Terms Other institutional activities include operation of residence halls, dining halls, hospitals and clinics, student unions, intercollegiate athletics, bookstores, faculty housing, student apartments, guests houses, chapels, theatres, public museums, and other similar auxiliary enterprises.

10. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Objective Determine the Direct Costs and the Facilities and Administrative (F&A) Costs allocable to: Instruction Organized Research Other Sponsored Activities Other Institutional Activities

11. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Direct Costs Direct costs are those costs that can be identified specifically with a particular sponsored project, an institutional activity, or any other institutional activity, or can be directly assigned to such activities relatively easily with in a high degree of accuracy.

12. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 F&A Costs Costs that incurred for common or joint objectivities and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity or any other institutional activity.

13. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 F&A Costs The question becomes how do you identify costs that have been incurred for common or joint objectivities and cannot be identified readily and specifically with a particular sponsored project, an instructional activity or any other institutional activity.

14. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 F&A Distribution Basis F&A costs shall be distributed to applicable sponsored agreements and other benefiting activities within each major function of an institution (Instruction, Organized Research, Other Sponsored Activities, Other institutional Activities) on the basis of the modified total direct costs for that major function.

15. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 F&A Distribution Basis The rate in each case should be stated as the percentage that the amount of the particular F&A cost pool is of the modified total direct costs identified with such pool.

16. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 F&A Cost Pools Facilities Depreciation & Use Allowance Interest on debt associated with certain buildings Equipment & Capital Improvements Operation & Maintenance Expense Library Administration General Administration & General Expenses Departmental Administration Sponsored Projects Administration Student Administration and Services All other types of expenditures not listed specifically under one of the subcategories of Facilities

17. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Facilities Cost Pools Cost Allocation Pools Method Interest Space Building Space Equipment Space Plant O&M Space Library Population Rate F&A Costs to Research MTDC Research

18. � National Council of University Research Administrators FRA IX Conference 2008 OMB Circular A-21 Admin Cost Pools Cost Allocation Pools Method Gen Admin All MTDC Dept Admin Dept MTDC Spons. Proj Selected MTDC Student Ser Instruction Rate F&A Costs to Research MTDC Research Admin Rate capped at 26%

19. � National Council of University Research Administrators FRA IX Conference 2008 Space Study The space study is the most critical part of the F&A proposal since it determines how most of the facility costs (depreciation, interest, operations & maintenance) will be allocated to the University functions such as instruction and organized research.

20. � National Council of University Research Administrators FRA IX Conference 2008 Space Study In December 2006 the U.S. Department of Health and Human Services, Program Support Center Division of Cost Allocation published the DCA Best Practices Manual For Reviewing College and Universities Long-Form Facilities & Administrative Cost Rate Proposals. http://rates.psc.gov/fms/dca/C&U%20Review%20Manual.pdf

21. � National Council of University Research Administrators FRA IX Conference 2008 Space Study Understanding how an educational institution assigns space to functional activities through a space use study is one of the key aspects of the proposal review. The importance of this space assignment is based on the fact that facility costs are allocated to institutional functions based on use of space. The most common method for assigning space to a function is to conduct a space use survey.