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 Financial & 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:

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