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 following job aid may help in determining the calculations.
Rebudgeting and F& A Adjustments Job Aid
The standard formula is X +RX = Y where
X = amount not exempt from overhead costs (ex: equipment)
Y = amount exempt from overhead costs (ex: Supplies)
R = overhead cost rate
In define, go to GB1 to find the Overhead (OH) 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.
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.
In this example, moving $5000 from supplies to equipment with a portion taken out of the $5,000 for indirect costs.
F&A (or OH) Rate: .485 or 48.5% R
Amount to transfer to supplies: $5,000 Y
Transfer from funding account to supply account: $5,000/1.485 = $3367 X
Transfer from indirect cost account: $3367*.485 = $1,633
Total transferred: $5,000
Y*(1+R) = X
4. Moving a specified amount from a source subject to OH recovery to a an account that is not subject to OH recovery.
In this example $5000 is to be moved from supplies to equipment.
F&A (or OH) Rate: .485 or 48.5% R
Amount to transfer from supplies: $5,000 X
Transfer to equipment: $5,000/1.485 = $3367 Y
Transfer to indirect cost account: $3367 x .485 = $1,633
Total transferred: $5,000
Y= X/(1+R)