Every sponsored project at the University has its own specific terms and conditions.
If rebudgeting between subaccounts must occur, two specific terms and conditions must be considered: the facilities and
administrative (F&A) rate (also known as the indirect cost or overhead rate), and the budget categories of expenses that are exempt from F&A recovery.
Rebudgeting between exempt and non-exempt budget categories requires
an F&A cost adjustment. Examples of common exempt budget categories are equipment, graduate
student fringe, and subawards.
Sponsors may have limits on how much funding can be shifted among budget categories or which
categories can be rebudgeted. A sponsor may not even allow rebudgeting. Thus, all appropriate
approvals must be obtained before rebudgeting can be done in the financial system. Certified
Approvers must review/approve all rebudgeting requests. In addition, some situations may require the
sponsor’s or a SPA grant administrator’s approvals.The University expects external sponsors to pay the actual costs of conducting the sponsored project. These costs include both the direct and the facilities and administrative cost obligations incurred by the University in the conduct of a project. The direct costs, that is, those costs that are clearly identified with and benefit a specific research project, include salaries, fringe benefits, equipment, supplies, travel and other expenses. The facilities and administrative costs are those institutional research infrastructure costs that cannot be readily attributed to an individual project or monitored on an individual basis and include building and equipment use, operations, maintenance and utilities, general, departmental and sponsored projects administration, library, and capital improvements. Each sponsored project is expected to pay its proportional share of these research infrastructure costs. This payment is based on the facilities and administrative cost rate that is negotiated annually (or multiple years) between the University and the U.S. Department of Health and Human Services. Since the facilities and administrative cost rate is based on the level of existing facilities and administrative costs associated with research, the facilities and administrative cost income received by the University (and all other institutions of higher education) is a reimbursement for actual costs incurred. All research project budgets should include facilities and administrative costs as determined by this federally negotiated facilities and administrative cost rate. Exceptions to this policy may be considered if the sponsor has an established, written policy applicable to all potential proposers which deviates from these rates. All deviations are subject to UT Austin administrative approval in advance.
The following job aid may help in determining the calculations.
...