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Facilities and Administrative Costs

Facilities and Administrative (F&A) costs are costs that cannot be specifically associated with directly charged to a single project. These types of charges include: use allowances; operations and maintenance expenses; general and administrative expenses; departmental administration expenses; sponsored projects administration; library expenses; and student administration and services.

F&A is typically calculated by applying the university’s federally negotiated rate to the Modified Total Direct Cost (MTDC) of the project. MTDC refers to the total cost of the project student maintenance fees, cost sharing, equipment, and subcontracts after the first $25,000, real estate rental, and patient care costs. A sponsor or particular solicitation may provide guidance on a different method of calculating F&A, in which case Sponsors Programs can provide assistance. More information on F&A can be found in Fiscal Policy FI0205.

Determining On/Off Campus

The use of the on- or off-campus rate for F&A costs is determined as follows.

  • If 51% or more of proposed salaries for UT personnel represents compensation for on-campus effort, the on-campus rate will apply.
  • If 51% or more of proposed salaries for UT personnel represents compensation for off-campus effort, the off-campus rate will apply.
  • If 50% of proposed salaries for UT personnel represents compensation for on-campus effort — and if 50% represents off-campus effort — the on-campus F&A cost rate will apply.

Please note that the inclusion of a subcontract in a budget has no bearing on the applicable rate – the applicable on- or off-campus rate is related solely to the compensation to be paid to UT employees.

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