CAMPUS POLICY
UNIVERSITY OF COLORADO at COLORADO SPRINGS
SUBJECT:
Policy on F & A Waivers
OMB Circular A-21, Allowable Costs on Federal Grants.
CU Administrative Policy Statements, “Policy on Indirect Cost Recoveries,” July, 1990.
Policy:
Facilities and Administrative (F&A) costs are real costs incurred by the campus, associated with all externally-sponsored projects. Any project budgeted at less than the federally approved rate is being subsidized by the other funded projects. But there still may be valid reasons for reducing or waiving these F&A costs on certain projects. Such waivers would reflect the trade off between the need to cover the real (F&A) costs, against the need for the campus to meet other strategic goals.
This policy defines the conditions under which such costs may be reduced or waived.
1. F&A costs may be reduced or waived if:
o By law or regulation, a government agency has a reduced F&A rate
o A foundation has a public, formal written policy on F&A rate, consistently applied to all supported projects
o A corporation has a public, formal written policy on F&A rate, consistently applied to all supported projects.
2. This campus policy will continue to remain in effect until subsequently amended or rescinded by the chancellor, subject to the principles and practices of shared governance.
3. The Chancellor has delegated authority to the Associate Vice Chancellor for Research to evaluate additional requests for F&A reductions or waivers on a case by case basis, when these requests are directly associated with the campus goals listed in the guidelines below.
o In order to expand the partnerships between the campus and Colorado governmental agencies and local businesses, consideration will be given to reduce F&A costs to 15% if the sponsor is a local or State governmental agency or a local business, and if the total budget being requested from the sponsor for the project is less than $25,000.
Rationale: In this case, the campus must trade off the competing needs/goals of covering the real (F&A) costs, versus encouraging community engagement and service to the community and State.
o In order to provide support for the research programs of pre-tenure faculty, consideration will be given to reducing or waiving F&A costs if the PI is an untenured tenure-track faculty member, has no other externally funded projects, there is clear evidence that such a reduction or waiver will increase the competitiveness of the proposal, and if the total budget being requested from the sponsor for the project is less than $25,000.
Rationale: In this case, the campus must trade off the competing needs/goals of covering the real (F&A) costs, versus assisting and encouraging young faculty to be successful in grant activities, and thus strengthening the grant culture on the campus.
o In order to enhance the cultural and artistic activities available to students and faculty on the campus, and to help serve the cultural needs of the community, consideration will be given to reducing F&A costs to 15% on projects proposed for programs and initiatives in the Arts and Humanities (for example, Theaterworks, the Gallery, VAPA, and the Humanities) if the total budget being requested from the sponsor for the project is less than $25,000.
Rationale: In this case, the campus must trade off the competing goals of covering the real (F&A) costs, versus encouraging activities in an area that plays a key role in community engagement, and represents a significant cultural asset to the community.