UVM's Facilities & Administrative (F&A) rate (PDF), also known as the "indirect cost recovery rate," is the federally approved percentage that UVM may apply to sponsored projects to recover allowable overhead costs. Since the F&A costs cannot be readily allocated to a single sponsored project, the F&A rate is the mechanism used by the University to recover incurred indirect costs used by researchers to conduct the scope of work of sponsored agreements, e.g., organized research.

Facilities costs such as operating costs of UVM's research facilities (electricity, heating, air conditioning), use of laboratory equipment, debt financing (interest expense) and the use of libraries, are incurred in support of University personnel and students working on sponsored agreement objectives.

Administrative costs such as sponsored project administration (SPA), accounting, payroll, information technology and compliance programs are incurred to administer sponsored agreements and ensure an effective University Internal Control system supports compliance within the sponsors’ regulations, terms and conditions.

Each University F&A rate is derived by Cost Accounting Services within University Financial Services in accordance with the Office of Management and Budget's Uniform Guidance for federal awards and the University Costing Standards (DS-2). The two broad F&A costs and their related costs groups are as follows:

Facilities Costs (uncapped) Administrative Costs (capped at 26%)
  • Building depreciation expense
  • Movable equipment depreciation expense
  • Operation & maintenance expenses, including debt financing costs and facilities adminstration costs
  • Library expenses
  • General administration expenses
  • Departmental administration
  • Sponsored project administration
  • Student administration and services 

See Sponsored Project Administration for information about how to apply the F&A rate to determine the F&A cost to a sponsored project.