Facilities and Administrative Costs
| Salaries & Wages |
Benefits |
Materials and Supplies |
Equipment |
Travel |
Participant Support Costs |
| Other Direct Costs |
Facilities and Administrative (F&A) Costs |
Facilities and Administrative (F&A) Costs, also referred to as indirect costs, overhead, overhead costs or administrative costs. Reimbursement for actual college expenses that support extramural activities but cannot be directly charged to a specific grant or contract. F&A costs result from shared services such as libraries, plan operations and maintenance, utility costs, general department and sponsored projects administrative expenses and deprecation or use allowances for buildings and equipment.
Chaffey College has a federally negotiated F&A Cost rate of 30%.
When developing a proposal budget, the F&A rate of 30% should be applied to the Modified Total Direct Cost (MTDC) and included as a line item. The MTDC includes all costs for the project minus the cost for equipment, i.e. single items costing more than $5,000 and with a useful life of more than one year as per the example below.
| Line Item | Cost |
| Salaries | 20,000 |
| Benefits | 10,000 |
| Travel | 500 |
| Equipment | 5,000 |
| Supplies | 500 |
| Contractual | 1,000 |
| Construction | 0 |
| Other | 5,000 |
| Total Direct Costs (TDC) | 42,000 |
| Modified Total Direct Cost (MTDC) | 37,000 |
| F&A Rate 30% x $37,000 | 11,100 |
| Total Costs (TDC plus F&A) | 53,100 |
Some sponsors and programs restrict or prohibit applicants from recovering F&A costs. Sponsor F&A restrictions must be clearly documented in the Request for Proposals, Proposal Guidelines, Application Guidelines, Federal Register, sponsor's website or other official document. If the sponsor has no official policies regarding F&A costs, applicants must apply the full F&A rate to the proposal budget.