Facilities & Admin Cost Rates
Change and Impact Notice
Effective July 1, 2013 the indirect rate for organized
research on campus will increase to 49.5% for Projects that were awarded as of July 1, 2012 or later and is tiered to increase for the
subsequent 3 fiscal years with each new increase taking effect July 1 of that
particular Fiscal Year. To see if the
new negotiated rate agreement affects your grant/award, please visit the OGCS
website for the full rate agreement along with the tiered rates over the next 3
fiscal years. It can be found at http://nau.edu/Research/Sponsored-Projects/.
How does this impact
The indirect rate charged on expenditures on your grant will
increase by .5% to a total of 49.5%. For
example for fiscal year 2013 if you spent $2,500 on supplies and or salaries, then the PeopleSoft System would generate 49%
of indirect cost to be charged to your grant, or $1,225 which equates to
decreasing your available spending balance by $3,725. Starting July 1, 2013 the overall cost for a
$2,500 transaction will be $3,737.50. Naturally
the amount of indirect charged increases in proportion to the amount of the
What should I be
aware of before Fiscal Year 2013 ends?
Cost transfers, if you have cost transfers (IDTs or RETROS)
for expenditures that occurred during fiscal year 2013, YOU WILL NEED TO GET THEM COMPLETED AND SUBMITTED NOW! THIS WILL ENSURE THAT THE COSTS HIT THE 2013
FISCAL YEAR LEDGER and THE LOWER RATE IS USED TO CALCULATE THE INDIRECT
What will happen if I
do not process the cost transfer in time?
The PeopleSoft System will automatically charge the higher
IDC rate. PAASFC will be reviewing the
IDTs and attempting to do manual adjustment to account for the appropriate IDC
rate. However we cannot ensure we will
be able to identify all cost transfers for expenditures that incurred in fiscal
year 2013 but have a posting date of fiscal year 2014. If the cost transfer
does not incur in the fiscal year 2013 for expenditures that hit the FY13
ledger, it will have a negative impact on the spending authority for that
project in FY14.
is critical that all sponsored projects be reviewed on a regular basis
(monthly) to ensure that expenditures are accurate and appropriate. Diligent
review of financial reports and timely communication between principal
investigators and departmental administrators should prevent the necessity for
transfers. When errors are discovered, they must be corrected as quickly as
possible and within NAU 60 day guidelines.
- Cost transfers should be considered
“the exception, rather than the rule,” and must be kept to a minimum and
require substantial and reasonable justification.
- All expenses that are transferred
must meet the same federal tests for allowability they must be:
treated as a direct cost.