[Faculty] FW: F&A Rates FY25 - FY27

[Chorover, Jon - (chorover)]

ALVSCE Research Faculty and Staff,

Please see the message on updated F&A (a.k.a. IDC) rates for upcoming proposal budget submissions.  Note that the F&A rates for Research proposals will increase by 1.0% effective start of FY25 (July 1, 2024) and then by 0.5% again at start of FY26 and FY27.  So, if you are submitting a multi-year proposal, it may well have 2-4 different F&A rates applied to different budget years of your proposal.  If you can align budget years with fiscal years, that will certainly simplify assignment of IDC rates by year.  But if your budget years cross-over fiscal years, no worries, as our excellent research administrator staff is well equipped to make the necessary calculations for indirect costs for each budget year.

Please note that the new rates will need to be applied in all proposals by no later than April 15th, 2024.

Jon

From: Rice, Rachel - (rachelrice) <rachelrice at arizona.edu<mailto:rachelrice at arizona.edu>>
Sent: Tuesday, March 12, 2024 3:38 PM
To: Judge, Sangita Pawar - (sangita) <sangita at arizona.edu<mailto:sangita at arizona.edu>>
Subject: F&A Rates FY25 - FY27

Hello Research Community,

The new signed F&A rate agreement released on 3/4/24 for Fiscal Year 2025 and beyond can be found here<https://financialservices.arizona.edu/sites/default/files/2024-02/university_of_arizona_ra_02152024_signed.pdf>.

Please note the increase in the on-campus Research rate and decreases to on-campus Instruction and Other Sponsored Activity starting in Fiscal Year 25 (July 1, 2024) as follows:

PERIOD OF PERFORMANCE
RESEARCH (MTDC)
INSTRUCTION (MTDC)
OTHER SPONSORED ACTIVITY (MTDC)
Current 07/01/2023 - 06/30/2024
53.50%
50.00%
47.00%
07/01/2024 - 06/30/2025
54.50%
40.0%
38.0%
07/01/2025 - 06/30/2026
55.00%
40.0%
38.0%
07/01/2026 - 06/30/2027
55.50%
40.0%
38.0%
07/01/2027 - until amended
55.50%
40.0%
38.0%

Given the time needed to update templates and budgets alike, please apply the updated rates in all applicable proposals by April 15th, 2024.

While this is the end of the grace period to update tables, forms, etc., please know that SPS highly encourages applying these rates, as appropriate, immediately.

Please find the guidance below regarding UAccess Research Proposals and Awards:

Proposals:


  *   All proposals initiated in UAR as of 4/15/24 with UAccess Research proposal types of 1 - New, 2 - Resubmission, 3 - Renewal, and 5 - Revision must be calculated using the new F&A rates. However, SPS encourages campus to start using the new rates immediately.
  *   Attached to this email and located in the FAQ page for F&A rates, is an excel template to calculate the corresponding rates to that of the budget period in question.

Awards:


  *   Awards associated with on-campus Research proposals initiated prior to 3/4/24 will be grandfathered at the existing Research 53.5% F&A rate.
  *   New awards and increments/modifications/supplements associated with on-campus Research proposals initiated between 3/4/24 and 4/15/24 will follow the F&A rate(s) used in the proposal.
  *   New awards and increments/modifications/supplements associated with on-campus Research proposals initiated after 4/15/24 will be established with the new Research F&A rate(s).
  *   All existing and new awards associated with on-campus Instruction and Other Sponsored Activity proposals will automatically be converted to the respective decreased F&A rate as of 7/1/24.

A Frequently Asked Questions page has been created to capture any guidance we accumulate as the new F&A rates are applied which can be found here<https://research.arizona.edu/F%26A%20Update%20Guidance> and will offer updates as we move forward in this process.

If you have any questions regarding the FY 25 and beyond rates, please email sponsor at arizona.edu<mailto:sponsor at arizona.edu>.

Thank you,
Rachel

Rachel Rice, MBA
Director
Preaward & Proposal Support Services
Sponsored Projects Services <https://research.arizona.edu/>
University of Arizona<https://www.arizona.edu/>

Email: rachelrice at arizona.edu<mailto:rachelrice at arizona.edu> Phone: 520-626-6113
Also available on Teams
She/Her(s) (why?<https://www.edi.nih.gov/blog/communities/what-are-gender-pronouns-why-do-they-matter>)
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