The document explains that a 50% Facilities & Administrative (F&A) cost rate, which is applied only to Modified Total Direct Costs (MTDC) rather than the total award, typically results in about one-quarter to one-third of total funding being allocated to F&A costs. This distinction is crucial for understanding that F&A rates are not calculated from the full award amount but only from a specific subset of direct costs, with indirect costs covering essential operational expenses such as utilities and building depreciation. The information emphasizes the real and necessary nature of these indirect costs in maintaining research infrastructure.
Cindy Hope
Cindy Hope is the Director for Costing & Financial Compliance (CFC) and leads COGR’s efforts to address federal p
