Facilities Administrative Costs and Recoveries Facilities Administrative FA

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Facilities & Administrative Costs and Recoveries

Facilities & Administrative Costs and Recoveries

Facilities & Administrative (F&A) Costs and Recoveries 2 …… F&A costs are actual expenses

Facilities & Administrative (F&A) Costs and Recoveries 2 …… F&A costs are actual expenses that reconcile to the UI audited Financial Statements. …… F&A recoveries are generated to reimburse the UI for a portion of F&A costs incurred. ……. Effort is made by Central Administration to return the recoveries to where the expense occurred given actual F&A costs exceed F&A recoveries.

F&A Negotiation Process 3 A formal F&A rate is prepared by the UI and

F&A Negotiation Process 3 A formal F&A rate is prepared by the UI and proposed every 3 -4 years. Proposal prepared in accordance with cost principles defined in Uniform Guidance (formerly OMB Circular A-21) Direct Negotiation with Federal Govt. Feds review documentation; then perform a site visit Walk space; interview PI’s, staff & students FY 2021 is base year for next rate proposal The approved F&A rate is less than actual F&A rate.

F&A Rate Calculation 4 University Financial Statements F&A Cost Groups Direct Cost Groups (Bases)

F&A Rate Calculation 4 University Financial Statements F&A Cost Groups Direct Cost Groups (Bases) Building Depreciation (F) Instruction and Dept Research (Inst) Equipment Depreciation (F) ORGANIZED RESEARCH (OR) Interest (F) Other Sponsored Activity (OSA) Operations and Maintenance (F) Other Institutional Activity (OIA) General Administration (A) Departmental Administration (A) Sponsored Project Administration (A) Student Service Administration (A) Library (F) Exclusions

5 Building Depreciation F&A Cost Groups Equipment Depreciation Interest Operations and Maintenance General Administration

5 Building Depreciation F&A Cost Groups Equipment Depreciation Interest Operations and Maintenance General Administration Departmental Administration Sponsored Project Administration Student Service Administration Library Numerator Denominator Inst OR OSA OIA

FY 2017 F&A Rate by Component 6 Negotiated Proposal Rate til Rate beg. Facilities:

FY 2017 F&A Rate by Component 6 Negotiated Proposal Rate til Rate beg. Facilities: Uncapped Capped FY 19 FY 20 Building Depreciation (BD) 4. 8% 4. 0% 4. 2% Equipment Depr (ED) 1. 9% 1. 6% Interest (Int). 8% 1. 8% 0. 7% Oper & Maint (O&M) 21. 8% 16. 0% 18. 9% Library (Lib) 3. 6% 2. 8% 3. 1% Subtotal Facility 32. 9% 26. 5% 28. 5% Administrative: General Admin (GA) Departmental Admin (DA) Sponsored Programs Admin (SPA) Subtotal Admin 5. 5% 19. 4% 4. 9% 17. 1% 5. 1% 17. 3% 4. 9% 17. 1% 4. 6% 29. 5% 4. 0% 26. 0% 3. 6% 26. 0% 4. 0% 26. 0% Total F&A Rate 62. 4% 58. 9% 52. 5% 54. 5%

FY 2019 F&A Recoveries versus F&A Overhead Expenditures Recoveries Total $ 81. 50 Expenditures

FY 2019 F&A Recoveries versus F&A Overhead Expenditures Recoveries Total $ 81. 50 Expenditures $ 105. 19 Under Recovery $ (23. 69) 7 * Amounts in millions

F&A Recoveries Generated by Each College – FY 2019 College/Unit Liberal Arts Business Dentistry

F&A Recoveries Generated by Each College – FY 2019 College/Unit Liberal Arts Business Dentistry Education Engineering Law Medicine Nursing Pharmacy Public Health Non-Collegiate TOTAL $ $ $ Total Recoveries 11, 198, 727 131, 604 1, 081, 739 627, 066 8, 050, 347 162, 231 46, 802, 695 579, 750 1, 166, 207 8, 786, 812 2, 910, 260 81, 497, 438 8

Distribution of Recoveries 9 Effort is made by Central Administration to return the recoveries

Distribution of Recoveries 9 Effort is made by Central Administration to return the recoveries to where the expense occurred. FY 19 = $81. 5 M Distribution General Education Fund = $48. 8 M Research Facility Funds = $11. 2 M UIHC = $6. 7 M TTI Plant Fund = $5. 5 M Oakdale Campus = $0. 3 M Clinical Trials = $2. 4 M Other = $6. 6 M

Distribution Recoveries 10 With the exception of the deals, every $ of recovery is

Distribution Recoveries 10 With the exception of the deals, every $ of recovery is distributed the same in FY 20: General Education Fund = 69. 39% Research Facility Funds = 14. 08% UIHC = 7. 08% TTI Plant Fund = 8. 99% Oakdale Campus = 0. 37% Hygienic Lab = 0. 09%

Calculation of UIHC Distribution % O&M Total Rate O&M % of Total Rate 18.

Calculation of UIHC Distribution % O&M Total Rate O&M % of Total Rate 18. 9 54. 5 34. 68% UIHC O&M Total O&M UIHC % of Total O&M % of Total Rate x UIHC % of Total O&M = 11 6, 920, 040 33, 900, 913 20. 41% 7. 08%

12 Questions?

12 Questions?

Costs Variable costs costs of Fixed costs costsCosts Variable costs costs of Fixed costs costs
The Nature of Costs Explicit Costs Accounting CostsThe Nature of Costs Explicit Costs Accounting Costs
Capital Costs Operating maintenance costs life Cycle costsCapital Costs Operating maintenance costs life Cycle costs
Indirect Costs 1 Indirect Costs Defined Indirect costsIndirect Costs 1 Indirect Costs Defined Indirect costs
BUDGETED COSTS Andr Rudder FEES vs COSTS CostsBUDGETED COSTS Andr Rudder FEES vs COSTS Costs
Types of Costs Fixed Costs Variable Costs 1Types of Costs Fixed Costs Variable Costs 1
PRODUCTION COSTS Definitions Short run costs costs thatPRODUCTION COSTS Definitions Short run costs costs that
COMPONENT RECOVERIES AND PRODUCT PURITIES Separation of componentsCOMPONENT RECOVERIES AND PRODUCT PURITIES Separation of components
Use and Distribution of Indirect Cost Recoveries FAUse and Distribution of Indirect Cost Recoveries FA
Facilities and Administrative Indirect Costs at The OhioFacilities and Administrative Indirect Costs at The Ohio
Property Tax Rebates Recoveries PTR Homestead Benefit FederalProperty Tax Rebates Recoveries PTR Homestead Benefit Federal