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Oklahoma State University: Understanding the F&A Rate Agreement

Are you an Oklahoma State University faculty member or a grant-seeking researcher? If so, you might have heard the term F&A rate agreement being thrown around. Today, we will dive in and explain everything you need to know about this agreement.

F&A stands for Facilities and Administrative Costs. It refers to the indirect expenses of research that are not directly allocable to a specific project. These are expenses such as utilities, rent, administrative salaries, maintenance, and other indirect costs.

So what does this have to do with Oklahoma State University?

Well, every university negotiates its F&A rate with the federal government. This agreement is essential because it determines the percentage of indirect costs that can be charged on a sponsored project.

Oklahoma State University`s current F&A rate is 54%. This percentage is determined by the university`s negotiation with the Department of Health and Human Services. It means that for every $100 spent on an Oklahoma State University project, $54 can be attributed to indirect costs.

How does the F&A agreement work?

Let`s say a researcher receives a grant of $100,000. Under the agreement, the researcher can charge $54,000 of indirect costs to the project, leaving a balance of $46,000 for direct project costs. These costs typically include salaries, equipment and supplies, travel, and other expenses that are directly allocable to the project.

It`s essential to note that the F&A rate only applies to grants and contracts with external sponsors such as the government, non-profit organizations, and private industry. It does not apply to internal funding sources such as the university.

Why is the F&A rate agreement important?

The F&A rate agreement is crucial for Oklahoma State University because it ensures that the university is appropriately reimbursed for indirect costs associated with research projects. It covers the university`s administrative and infrastructure expenses, reducing the burden on researchers to pay for these overhead costs.

Moreover, the F&A rate agreement ensures that Oklahoma State University remains competitive in securing external funding for research projects. A higher F&A rate indicates that the university can provide better support for research projects, making it an attractive funding destination for sponsors.

Finally, the F&A rate agreement ensures that Oklahoma State University complies with federal regulations governing the allocation and recovery of indirect costs.

In conclusion, the F&A rate agreement is a crucial aspect of Oklahoma State University`s research funding infrastructure. It guarantees that researchers can focus on conducting meaningful research while the university recovers its indirect costs.

Whether you are a grant-seeking researcher or a faculty member at Oklahoma State University, it`s essential to understand the F&A rate agreement and its implications for funding research projects.