Sponsored Research - Frequently Asked Questions

Frequently Asked Questions

• What forms are required to submit a proposal?
  A UTIA-001 and a budget worksheet. If any work is being performed at a station, a UTIA-002 form is also required.
  
  
• What are F&A costs?
  “Facilities and Administrative (F&A) costs are those that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.” * F&A represents real costs that are incurred in the conduct of research or other projects but which cannot be specifically identified with the project. Thus, F&A cost cannot be waived, but in fact, must be cost-shared.
  
  *OMB Circular A-21 Cost Principles for Educational Institutions. Revised August 8, 2000
  
  
• What is the Experiment Station’s current audited F&A rate?
  35% MTDC as of July 1, 2005
  
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• What does MTDC mean?
  Modified Total Direct Costs (MTDC) is a figure used in calculating facilities and administrative costs (F&A). It equals the direct costs of a project less equipment costs, tuition, and the cost of any subcontracts over $25,000.
  
  
• Does the original F&A rate remain in effect throughout the life of a project or does it change yearly for incrementally funded projects?
  The rate used is the audited rate in effect at the beginning of the project. It does not change throughout the life of the project even if the audited rate does change.
  
  
• Why did the budget worksheet not work correctly?
  Make sure you put in the correct date. The F&A rate is determined by the date you enter. Also, be sure you entered the F&A rate in the correct column.
  
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• What does cost sharing mean?
  Investment in the project by the applicant. There can be both direct cost/cost sharing and indirect cost/cost sharing. Both types can be mandatory, required, or voluntary. Mandatory means that the agency specifies the amount to be shared by the applicant. Required means that the agency requires sharing by the applicant, but does not set the amount. Voluntary means the agency does not require or specify any amount to be shared by the applicant. The type of cost sharing used for a proposal must be indicated on the UTIA-001 form for correct accounting throughout the life of the project.
  
  
• What are direct costs?
  Expenses directly associated with the performance of a project. Direct costs are clearly identifiable and can be itemized on a proposal budget. They include: salaries, fringe benefits, materials and supplies, equipment, travel, and sub-contracts.
  
  
• What are indirect costs?
  Indirect costs are now called F&A costs. Please see F&A costs.
  
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• What are fringe benefits and how should they be determined?
  A budget line item which covers the institution’s contribution to the benefits of employees. Fringe benefits include the institution’s contribution to retirement funds, medical insurance, and social security. At UT a standard rate is used in estimating benefits for proposal budgets, however the actual fringe benefits will be charged on all grants and contracts.
  
  The Office of Budget and Finance calculates the estimated rate to be used in proposals. The current staff benefits rate is 28%.
  
  The calculation breakdown is:
  
  

  Retirement:		10.02%
  Social Security:		7.73%
  Group Hospitalization:		8.01%
  Fee Remissions-Staff:		.80%
  Workers Compensation:		.51%
  Death Benefit-Sick Leave:		.10%
  Unemployment:		.08%
  		27.25%

  
  
  
• How do I budget a $60,000 subcontract?
  The first $25,000 of the subcontract is commitment code 481000. The remaining $35,000 is commitment code 482000.
  
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• How do I get an Advance Account Number?
  Complete an advance account request form and forward to the Dean’s Office.
  
  
• Do maintenance agreements come through the Grants and Contracts office?
  Anything requiring a signature by the University must come through the Grants and Contracts office.
  
  
• When do I request a new WBS element (account number)?
  On any new project and any ongoing project when the agency’s account number changes.
  
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