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 (Account ChartFields) requires
an F&A cost adjustment. Examples of common exempt budget categories are equipment, graduate
student fringe, and subawards.
...
Rebudgeting and F& A Adjustments Job Aid
The standard formula is X +RX = Y where
X = amount not exempt from overhead costs
Y = amount exempt from overhead costs
R = overhead cost rate
In define, go to GB1 to find the OH (Overhead or Overhead/Indirect Cost/ Facilities and Administratative (OH/IC/F&A) Rate in the bottom right corner.
Examples:
- Transferring an amount plus overhead from funds not subject to OH recovery to funds subject to OH recovery when overhead needs to be determined.
...
Formula and Example:
Total Allocation(AL) : $43,994
Nonallowable costs: 5450
Total Allocation minus nonallowable costs = (A): 43994-5450 = 38544
Indirect cost rate (R): .05 or 5%
Formula: (R)(A)/1+R (.05)(38544)/1.05
Allowable indirect cost: 1835
used when transfering money out of accounts that do earn overhead into accounts that do not:
...
In this example, transferring from equipment a total of $5000 to supplies with an undetermined amount needing to also be transferred from equipment to the OH account.
OH Rate: .485 or 48.5% R
Amount to transfer to supplies: $5,000 X
Transfer from equipment: ($5,000 x .485) = $7,425 Y
Transfer to OH account: ($5000 X .485) = $2,425 RX
- Balance of $5,000 goes to supplies. X +RX = Y
2. Transferring a maximum amount from funds not subject to OH recovery to funds subject to OH recovery.
In this example, transferring $5000 from equipment to a combination of supplies and OH and determining how much to move to each account.
OH Rate: .485 or 48.5% R
Amount to transfer not to exceed: $5,000 (supplies and indirect costs combined) Y
Transfer from equipment to supply account: $5,000/1.485 = $3367 X
Transfer from equipment to indirect cost account: $3367 x .485 = $1,633 RX
Total transferred: $5,000 Y
Y = X/(1+R)
3. Moving a specified maximum amount from a source subject to OH recovery to a an account that is not subject to OH recovery.
F&A (or OH) Rate: .485 or 48.5%
Amount to transfer to supplies: $5,000
Transfer from funding account to supply account: $5,000/1.485 = $3367
Transfer from indirect cost account: $3367*.485 = $1,633
Total transferred: $5,000