Every sponsored project at the University has its own specific terms and conditions.
If rebudgeting must occur, two specific terms and conditions must be considered: the facilities and
administrative (F&A) 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.
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 following job aid may help in determining the calculations.
Rebudgeting and F& A Adjustments Job Aid
In define, go to GB1 to find the OH (Overhead or F&A) Rate in bottom right corner.
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:
(OH Rate)(Allowable cost)/ 1+ Rate =