Research @ U I C

Proposals not yet submitted

All proposals subject to the federally negotiated rates that are currently being prepared for submission are to include the new F&A rates, with the clarifications noted below.

Existing awards

F&A rates for existing awarded projects will not be increased to the new rates until such time as a proposal is submitted for new competing cycle of funding.

Pending (already submitted) proposals for NIH grants

Competing Proposals: New, Renewal, Resubmissions. A copy of the new rate agreement will be included with the other "Just-in-Time" documentation requested by the NIH.
Supplements: Supplements will be accepted at the rate submitted unless NIH provides an opportunity to update the proposal. All new supplements however should be prepared using the new rates.
Non-Competing Proposals: Continuations. Continuations include any pending or future continuation proposals for existing grants. Since the F&A cost allocation/rate for NIH continuation funding is already established with the initial award, the rates will not change for non-competing funding for on-going projects.

Pending (already submitted) proposals for all other federal funding agencies or non-Federal agencies using the federally negotiated rates

For pending proposals already submitted, and if the agency requests a revised budget, the new F&A rates should be included in the revised budget. Please Note: If a revised budget is requested, and if the project is restricted to a total cost limitation, then the increased rates will not be used if such use would impact the already proposed direct costs for the project.
If an agency does not/will not accept the new rates at the time of award for proposals that have already been submitted prior to the implementation of the new rates on 7/1/11, the previously proposed rate will apply and the award will be accepted with the lower rate.

Using Multiple F&A Rates in a Proposal Budget

Since the University's new F&A rate for on-campus research consists of two rates:

59% for 7/1/11 - 6/30/12
59.5% for 7/1/12 and beyond

New proposals that have a period of performance other than the July through June time frame that cross over from the FY 12 into the FY13, will contain more than one F&A rate.
As such, the information below is provided as a guide to assist in the preparation of the indirect cost rate portion of the budget.

Method #1:

Divide the MTDC by the # of months in the budget period (usually 12).
This gives you the monthly MTDC amount.

Multiply that monthly MTDC amount by the # of months the first F&A rate is in effect.
Then multiply that total monthly MTDC amount by the # of months the second F&A rate is in effect.

Adding the total of these two provides you with the total F&A costs for the budget period.

Example:
If the period of performance of one of the budget years is 3/1/12 - 2/28/13 and the MTDC is $100,000:

MTDC of $100,000 divided by 12 months = $8,333.

Multiply the monthly MTDC amount of $8,333 by the number of months that each F&A rate is in effect. Then multiply that total monthly amount by each F&A rate is in effect.

$8,333 x 4 months = $33,334 x 59% = $19,667
$8,333 x 8 months = $66,667 x 59.5% = $39,667

Therefore, $19,667 + $39,667 = $59,334 (total indirect costs for the budget period).

Method #2:

An alternative method is as follows:

Determine the mathematical average rate for the twelve month period.

F&A rate #1 x # of months in effect = A
F&A rate #2 x # of months in effect = B
A + B = C

C divided by the # of months of the budget period = mathematical average F&A rate
Multiply the Modified Total Indirect Cost (MTDC) base by the mathematical average F&A rate to calculate total indirect costs.

For your convenience, the table below represents precalculated blended rates to be used for a 12 month period with a budget start date that begins on or after July 1, 2011 and commences on the 1st of the month.

Budget Start Date	Rate used
1-Jul-11	59.00
1-Aug-11	59.04
1-Sep-11	59.08
1-Oct-11	59.13
1-Nov-11	59.17
1-Dec-11	59.21
1-Jan-12	59.25
1-Feb-12	59.29
1-Mar-12	59.33
1-Apr-12	59.38
1-May-12	59.42
1-Jun-12	59.46
1-Jul-12	59.50

NOTE: If you decide to utilize this method, please remember to indicate the actual F&A rates themselves on the proposal application/budgets/budget justifications. For example, 59/59.5% rather than the blended rates noted above.

Example:
If the period of performance of the first budget year is 3/1/12 - 2/28/13:

59 x 4 months (3/1/12 through 6/30/12) = 236
59.5 x 8 months (7/1/12 – 2/28/13) = 476

236 + 476 = 712
712 divided by 12 months = 59.33
Therefore, the MTDC base would be multiplied by 59.33% to arrive at the total F&A costs. However, the budget pages themselves would reflect the two rates of 59 & 59.5%.

In this example, if the MTDC is $100,000 the total F&A cost rate amount would be ($100,000 x 59.33%) = $59,333

F&A Excel Estimators

Two F&A Cost Estimators have been created to assist you with budget preparation using multiple F&A Cost Rates, as well as varying periods of performance.

Indirect Cost Estimator for a period of performance of 12 months, created as an Excel file, will assist you in estimating your budget for periods of performance that are 12 months in length. By filling in the "Red" numbers, the "Blue" numbers will be automatically calculated according to the pre-programmed formulas. To access this useful tool, click here.

Indirect Cost Estimator for a period of performance "other" than 12 months, created as an Excel file, will assist you in estimating your budget for periods of performance other than 12 months. By filling in the "Red" numbers, the "Blue" numbers will be automatically calculated according to the pre-programmed formulas. To access this useful tool, click here.

Instructions for Completing Proposal Approval Form (PAF) – Budget Section Only

For new proposals that have a period of performance other than the July through June time frame that cross over from the FY 12 into the FY13, will contain more than one F&A rate. As such, the information below is provided as a guide to assist in the preparation of the PAF budget section.

VIII. Budget

A. Year one or current year (mm/dd/yy format): From: 03/01/11-06/30/11 To: 07/01/11 – 02/28/12			Total Project Period (mm/dd/yy format): From: 03/01/11 To: 02/28/16
B. Budget	Year 1 or Current Year		Total for Entire Project		Does budget include tuition remission? Yes No If yes $ /per Year 1 or current Year
Direct Cost	$		$
Facilities & Admin.	$	59/59.5%	$	59/59.5%
Total Request	$		$

Implementation of New F&A Rates