This document, issued by the National Institutes of Health (NIH), provides revised Frequently Asked Questions (FAQs) regarding the costing and financial management of core facilities and other recharge centers that support NIH-funded research. It addresses recurring challenges faced by institutions in interpreting and implementing federal cost principles—such as OMB Circulars A-21, A-122, and relevant CFR sections—highlighting areas of complex compliance and offering clarification to promote consistent and transparent practices. The FAQs clarify the definition and role of core facilities, emphasizing their function as centralized, shared research resources and distinguishing them from other types of service centers and specialized service facilities. The document outlines acceptable methods for establishing user fees and recovering costs, mandates that rates be based on actual usage and cost, and requires nondiscriminatory application across federal and non-federal users. It discusses allowable and unallowable cost categories, depreciation rules, allocation of direct and indirect (F&A) costs, treatment of institutional subsidies and voluntary committed cost-sharing, and principles for managing surpluses or deficits.
Further, it provides guidance on billing procedures, the handling of complex or long-term project charges, and the treatment of external users and program income. Notably, the document reinforces that federal cost recovery must avoid duplication and that institutions must ensure proper documentation, regular review, and adjustment of rates to maintain compliance and fiscal integrity. The FAQs also address flexibility in subsidizing certain user groups, priority use agreements, and the permissibility of different rates for external or commercial users, provided such charges remain reasonable and compliant. While offering extensive interpretative guidance, the document states explicitly that these FAQs do not constitute new policy and may not fully resolve every scenario; institutions are advised to consult their NIH grants management contacts for case-specific issues. Periodic updates to the FAQs are anticipated in response to evolving federal guidelines.
