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UC DAVIS: OFFICE OF THE VICE CHANCELLOR--ADMINISTRATION; UC DAVIS: OFFICE OF THE VICE CHANCELLOR--RESEARCH July 15, 2003 DEANS, DIRECTORS, DEPARTMENT CHAIRS AND CAMPUS/UCDMC ADMINISTRATIVE OFFICERS SUBJECT: Facilities and Administrative Cost Rates Our current federally negotiated facilities and administrative (F&A) cost rates agreement expired on June 30, 2003. Therefore, for project proposal budget purposes, effective July 1, 2003, we will operate under provisional forecasted F&A cost rates until our current F&A rate proposal is negotiated and finalized with the U.S. Department of Health and Human Services, our cognizant audit agency. Attached is a document showing the F&A cost rates that should be used in the preparation of proposals for all new federal and non-federal research, instruction, and other sponsored projects. In accordance with OMB Circular A-21, Section G, Determination and application of F&A cost rate or rates, effective July 1, 2003, the F&A cost rates applied to actual direct expenditures of federal and non-federal awards for reimbursement purposes will be those rates that were in effect for fiscal year ending June 30, 2003, as shown in the table below. These rates will be used for reimbursement purposes until the new F&A costs rate agreement is executed. Further guidance will be provided at that time on the application of the correct rates to be used for both budgeting and reimbursement purposes. Programs operating under an approved waiver will continue to be reimbursed based on the F&A cost rates agreed to under the terms in the waiver and will continue to use the agreed upon rate for proposals submitted to those programs. Please contact Ahmad Hakim-Elahi, Office of Research, at (530) 752-6060 or Kathy Hass, Accounting & Financial Services, at (530) 757-8525, if you have questions about this directive. Stan Nosek Vice Chancellor - Administration Barry M. Klein Vice Chancellor - Research Attachment: Facilities and Administrative Cost Rates 03-083
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