Facilities and Administration Indirect Costs on Research Projects

1
Facilities and Administration (Indirect) Costs on
Research Projects 

• Presented by 
• Patrick M. Burke, Executive Director of Finance
  and Administration

2
Sponsored Programs

• Encompasses research, training, and program
  grants from all sponsors
• For this presentation, the overhead discussed is
  from federal research

3
Facilities and Administration Costs

• Definition- FA costs are those that are
  incurred for common or joint objectives and
  therefore cannot be identified readily and
  specifically with a particular sponsored project,
  and instructional activity, or any other
  institutional activity.
• Facilities
• Depreciation Expense
• Interest Expense
• Operation Maintenance
• Library Expense
• Administration
• Administration General Expenses
• Incurred by Offices that Serve the entire
  University
• Department Administrative Expense
• Sponsored Projects Administration
• Student Administration Services

4
How is FA calculated?

• For each 1 of direct expenditures made by Penn
  researchers, the University currently receives an
  additional 59 to cover its research overhead.
  (This overhead percentage is subject to periodic
  re-negotiation.)
• To put it another way, 37 of every federal
  research dollar received by Penn goes to support
  the Universitys research overhead, and 63 is
  spent directly on the research itself.
• Most non-federal grants offer much lower
  overhead.

5
Finance and Administration Rates
6
How is FA Allocated?

• Research overhead income is allocated at Penn
  as follows
• 81 School for support of the sponsored program
  infrastructure
• 19 Central University
• 11 Provosts Subvention Pool
• 8 Central Research Support Services
• Office of the Vice Provost for Research
• Office of Research Services (Application
  Processing/Grant Accounting)
• Office of Environmental Health/ Radiation Safety
• Office of Regulatory Affairs (Regulatory
  Compliance for Human Subject Research, Animal
  Research, etc.)
• Office Lab Animal Resources (ULAR)
• Research Facilities Development Fund (RFDF)
• University Research Funds (URF)

7
Central Research Support Services, (8)

• Research Facilities Development Fund (RFDF) and
  URF Last 8 years of funding supported the
  following

8
Provosts Subvention Pool, (11)

• Subvention is awarded by the Provost to support
  institutional academic priorities.
• Funded primarily through 20 of tuition income
  and 11 of grant overhead.
• Provost allocates 100 to support schools,
  resource centers and academic initiatives carried
  out directly by the President and Provosts
  Offices.
• Provides the Provost ability to influence and
  direct the development and implementation of
  academic priorities at Penn.
• School receives an annual allocation of 2.3M
• In FY09, 316,000 supported Nursings research
  mission

9
School of Nursing Research Infrastructure , (81)
Total ICR 2,324,000
10
What does it cover?

• Telephone and voicemail services
• Standard mail services
• Copying
• General office supplies
• Standard office furniture
• PennNet connection
• Standard office computer and printer

11
Sponsored Program Contribution
12
Research Contribution