Unrecovered F&A
Facilities and Administrative Costs are real costs incurred by an institution in support of sponsored activities, but cannot be easily identified with a specific project or sponsored activity. The costs result from shared services or are incurred to benefit common and joint objectives. F&A costs are synonymous with indirect costs, IDC, and overhead costs.
There are times when a sponsor (federal, foundation, industry, etc), will not pay the full F&A rate established by the institution. When this occurs, a different F&A rate is applied to the cost base being utilized by the project (Total Direct Cost, Modified Total Direct Cost or other). When a different rate other than the institutional set rate is applied, the system generates an amount of “Unrecovered F&A”, also known as underrecovered funds. Since the full indirect costs are not recovered by the project sponsored, the institution must provide the remaining expense usually captured with full IDC.
The Unrecovered F&A tab allows you to specify F&A costs which are not requested or provided by the sponsor.
The system generates an unrecovered amount under the following circumstances:
• When the apply box for the overhead rate on the line item expenses is unchecked, the system will apply the entire Institute rate as Unrecovered F&A.
• When the apply box for the overhead rate is checked, if the Applicable Rate is lower than the Institute Rate, the system will apply the difference as Unrecovered F&A. If the Applicable Rate is over the Institute Rate a negative, Unrecovered F&A is generated.
• The same conditions also apply to Cost Sharing amounts you enter.
When Unrecovered F&A is generated on a budget, you need to identify the funding source(s) for the budget. The sources of funding are identified in the Unrecovered F&A Distribution Section on the Distribution & Income Tab.
|
|
This is configurable (as with cost share) by institution because not all schools require this commitment for reduced F&A. |
Figure 270 Budget Document > Distribution & Income Page > Unrecovered F&A Section - Example
Table 140 Budget Document > Distribution & Income Page > Unrecovered F&A Section - Field Descriptions
|
Field |
Description |
|
Unrecovered F&A Distribution List | |
|
Fiscal Year |
Enter the year in yyyy format that the funds will be expended. Identifies the institutional fiscal year for which a rate is effective. |
|
Applicable Rate |
The Rate of Unrecovered F&A set on budget summary. In the budget module this is the rate that is automatically applied to object codes within each budget version, where applicable.
|
|
Campus |
Select yes or no from the drop-down
list. |
|
Source Account |
Enter the number of the account that unrecovered F&A will be paid from. Ledger ID assigned by institution (based on an institution's chart of accounts) to identify the account in the institution's financial system. The account that details the cash resources that will be used to cover the expenses that will post in the Destination account. |
|
Amount |
Enter the dollar amount in dollars and cents. |
|
Actions |
|
|
Total Allocated |
The sum total of all allocated funds entered. |
|
Unallocated |
The sum total of all unallocated funds entered. |
|
Unrecovered F&A Summary | |
|
Period |
Unrecovered F&A totals by period are generated and displayed |
|
Amount |
Sum total from all periods’ unrecovered F&A |
to
indicate whether the activity is on or off campus.
to add your entry as a numbered
line item below
to remove a numbered line item
from the calculation table