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<div class="WordSection1">
<div>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761">ALVSCE Research Faculty and Staff,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual">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. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual">Please note that the new rates will need to be applied in all proposals by no later than April 15<sup>th</sup>, 2024.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria Math",serif;color:#0F4761;mso-ligatures:standardcontextual">Jon
<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Rice, Rachel - (rachelrice) <<a href="mailto:rachelrice@arizona.edu">rachelrice@arizona.edu</a>>
<br>
<b>Sent:</b> Tuesday, March 12, 2024 3:38 PM<br>
<b>To:</b> Judge, Sangita Pawar - (sangita) <<a href="mailto:sangita@arizona.edu">sangita@arizona.edu</a>><br>
<b>Subject:</b> F&A Rates FY25 - FY27<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Hello Research Community,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">The new signed F&A rate agreement released on 3/4/24 for Fiscal Year 2025 and beyond can be found
</span><a href="https://financialservices.arizona.edu/sites/default/files/2024-02/university_of_arizona_ra_02152024_signed.pdf"><span style="font-size:11.0pt">here</span></a><span style="font-size:11.0pt">.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Please note the increase in the</span>
<span style="font-size:11.0pt">on-campus Research rate and decreases to on-campus Instruction and Other Sponsored Activity starting in Fiscal Year 25 (July 1, 2024) as follows:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="914" style="width:685.5pt;margin-left:-.4pt;background:white;border-collapse:collapse">
<thead>
<tr>
<td width="248" valign="bottom" style="width:186.0pt;border-top:none;border-left:solid white 1.0pt;border-bottom:solid white 1.5pt;border-right:solid white 1.0pt;background:#E2E9EB;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:11.0pt;color:black">PERIOD OF PERFORMANCE</span></b><b><span style="font-size:11.0pt"><o:p></o:p></span></b></p>
</td>
<td width="164" valign="bottom" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.5pt;border-right:solid white 1.0pt;background:#E2E9EB;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:11.0pt;color:black">RESEARCH (MTDC)</span></b><b><span style="font-size:11.0pt"><o:p></o:p></span></b></p>
</td>
<td width="178" valign="bottom" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.5pt;border-right:solid white 1.0pt;background:#E2E9EB;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:11.0pt;color:black">INSTRUCTION (MTDC)</span></b><b><span style="font-size:11.0pt"><o:p></o:p></span></b></p>
</td>
<td width="324" valign="bottom" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.5pt;border-right:solid white 1.0pt;background:#E2E9EB;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:11.0pt;color:black">OTHER SPONSORED ACTIVITY (MTDC)</span></b><b><span style="font-size:11.0pt"><o:p></o:p></span></b></p>
</td>
</tr>
</thead>
<tbody>
<tr>
<td width="248" valign="top" style="width:186.0pt;border:solid white 1.0pt;border-top:none;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:#7F7F7F">Current 07/01/2023 – 06/30/2024<o:p></o:p></span></p>
</td>
<td width="164" valign="top" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:#7F7F7F">53.50%<o:p></o:p></span></p>
</td>
<td width="178" valign="top" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:#7F7F7F">50.00%<o:p></o:p></span></p>
</td>
<td width="324" valign="top" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:#7F7F7F">47.00%<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="248" valign="top" style="width:186.0pt;border:solid white 1.0pt;border-top:none;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">07/01/2024 - 06/30/2025</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="164" valign="top" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">54.50%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="178" valign="top" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">40.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="324" valign="top" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">38.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="248" valign="top" style="width:186.0pt;border:solid white 1.0pt;border-top:none;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">07/01/2025 - 06/30/2026</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="164" valign="top" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">55.00%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="178" valign="top" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">40.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="324" valign="top" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">38.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="248" valign="top" style="width:186.0pt;border:solid white 1.0pt;border-top:none;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">07/01/2026 - 06/30/2027</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="164" valign="top" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">55.50%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="178" valign="top" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">40.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="324" valign="top" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">38.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="248" valign="top" style="width:186.0pt;border:solid white 1.0pt;border-top:none;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">07/01/2027 - until amended</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="164" valign="top" style="width:123.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">55.50%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="178" valign="top" style="width:133.5pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">40.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="324" valign="top" style="width:243.0pt;border-top:none;border-left:none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;padding:6.0pt 6.0pt 6.0pt 6.0pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;color:black">38.0%</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal"><span style="font-size:11.0pt">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Given the time needed to update templates and budgets alike, please apply the updated rates in all applicable proposals by April 15<sup>th</sup>, 2024.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Please find the guidance below regarding UAccess Research Proposals and Awards:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><u><span style="font-size:11.0pt">Proposals:<o:p></o:p></span></u></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="mso-list:l0 level1 lfo3"><span style="font-size:11.0pt">All proposals initiated in UAR as of
<b><u>4/15/24</u></b> 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.<o:p></o:p></span></li><li class="MsoListParagraph" style="mso-list:l0 level1 lfo3"><span style="font-size:11.0pt">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.<o:p></o:p></span></li></ul>
<p class="MsoNormal"><b><u><span style="font-size:11.0pt"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNormal"><b><u><span style="font-size:11.0pt">Awards:<o:p></o:p></span></u></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="mso-list:l1 level1 lfo6"><span style="font-size:11.0pt">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.
<o:p></o:p></span></li><li class="MsoListParagraph" style="mso-list:l1 level1 lfo6"><span style="font-size:11.0pt">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.<o:p></o:p></span></li><li class="MsoListParagraph" style="mso-list:l1 level1 lfo6"><span style="font-size:11.0pt">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). <o:p></o:p></span></li><li class="MsoListParagraph" style="mso-list:l1 level1 lfo6"><span style="font-size:11.0pt">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.<o:p></o:p></span></li></ul>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">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
</span><a href="https://research.arizona.edu/F%26A%20Update%20Guidance"><span style="font-size:11.0pt">here</span></a><span style="font-size:11.0pt"> and will offer updates as we move forward in this process.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">If you have any questions regarding the FY 25 and beyond rates, please email
</span><a href="mailto:sponsor@arizona.edu"><span style="font-size:11.0pt">sponsor@arizona.edu</span></a><span style="font-size:11.0pt">.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Rachel <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<div>
<div>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Rachel Rice, MBA
</span></b><span style="font-size:10.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Director </span></i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Preaward &
</span></i><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#2F5496">Proposal Support</span></i><i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#0F4761"> </span></i><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Services </span></i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><a href="https://research.arizona.edu/"><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif">Sponsored Projects Services </span></i></a><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><a href="https://www.arizona.edu/"><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif">University of Arizona</span></i></a><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span lang="FR-CA" style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Email:
</span><a href="mailto:rachelrice@arizona.edu"><span lang="FR-CA" style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif">rachelrice@arizona.edu</span></a><span lang="FR-CA" style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761"> Phone:
</span><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">520-626-6113 </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#0F4761">Also available on Teams </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#2F5496">She/Her(s) (</span><a href="https://www.edi.nih.gov/blog/communities/what-are-gender-pronouns-why-do-they-matter"><i><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif">why?</span></i></a><span style="font-size:8.0pt;font-family:"Trebuchet MS",sans-serif;color:#2F5496">)</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"> <o:p></o:p></span></p>
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