Facility and Administrative Costs


The federal code of regulations defines Facility and Administrative (F&A) costs as “those costs incurred for a common or joint purpose benefiting more than one cost objective, and not readily assignable to the cost objectives…” F&A was previously called indirect costs, and is to be applied to all grants, contracts and other agreements with federal, state and private entities.

Periodically, the University of New Orleans negotiates its Federal F&A Rate Agreement through the U.S. Department of Health and Human Services. The current agreement, dated October 21, 2014, is effective from July 1, 2014 through June 30, 2018. The rates shall be enforced until amended by further negotiation. The approved rates are:

Activity Location Rate
Research On-campus 46%
Research Off-campus 26%
Instruction On-campus 46%

F&A costs are calculated on all direct expenses except: equipment, fellowships, scholarships, tuition, off-site facility rental costs and the portion of subgrants or subcontracts in excess of $25,000.

Some, but not all, U.S. Department of Education and Louisiana Department of Education Teacher Training grants have a mandatory 8% F&A cap. If the terms for F&A rates are quoted in the literature of the funding agency or private foundation funding source attach this documentation to your routing form. Negotiated rates which are less than UNO's federally negotiated rate must be submitted for approval of the head for Research & Sponsored Programs and must have sufficient written documentation from the sponsor to support the request for the university to use a reduced F&A rate.