Inquiry Reports: F&A Base Codes and Rates

The UC Contract and Grant Manual establishes the principle of full cost recovery (both direct and indirect costs) for work or services performed for non-University entities. Indirect costs (also called Facilities and Administration or F&A costs) are costs that are incurred for common or joint objectives. Indirect cost rates are negotiated under OMB Circular A-21. The Regents and the Department of Health and Human Services signed a Facilities & Administrative Cost Rate Agreement effective May 23, 2012. These rates are applied to a “base” to determine the amount charged to the sponsor. The F&A Base Codes are used to indicate which base applies to an award.

Code Description Status
A Modified Total Direct (MTDC)

Base Code A calculates F&A on all direct expenditures excluding the following items: equipment, alterations and renovations, patient care charges, tuition and fee remission, space rental costs, scholarships and fellowships (stipends), the portion of each subcontract in excess of $25,000, and the total cost of any subcontract to another UC campus. This base code should also be used for all grants or contracts with a 0% F&A rate.

A
B TDC excl. NRSA categories A
C Total Direct Costs (TDC)

Base Code C calculates F&A on ALL direct expenditures.

A
D Salaries & Benefits only

Base Code D calculates F&A on salaries and benefits expenditures ONLY. All other expenditure categories are excluded.

A
E Salaries only

Base Code E calculates F&A on salaries ONLY. All other expenditure categories (including benefits) are excluded.

A
F TDC excl. Tuition & Fees

Base Code F calculates F&A on all direct expenditures excluding tuition and fees.

A
H Supplies & Expenses only I
I TDC excl. Subcontracts

Base Code I calculates/charges F&A on all expenditures excluding Subcontracts. All Subcontract expenditures are exempt from F&A under this base code.

A
J TDC excl. Equipment

Base Code J calculates/charges F&A on all expenditures excluding Equipment. All equipment expenditures are exempt from F&A under this base code.

A
K TDC excl. Equipment & Subs

Base Code K calculates/charges F&A on all expenditures excluding Equipment and Subcontracts. All equipment and subcontract expenditures are exempt from F&A under this base code.

A
L Sales & Service Agreement A
M Indus Clin Trial (Award only)

Base Code M calculates F&A only on industry clinical trial revenue received, NOT expenditures. For industry clinical trial proposals, Departments should use the current clinical trial rate with Base Code “C”. CGA will change the code (and applicable rate) to base code M when awarded.

A
N NRSA FY2006 Forward

Base Code N calculates F&A on all direct expenditures excluding the following items: tuition and related fees, equipment, and the portion of each subcontract in excess of $25,000 (Note: space rental and patient care are NOT excluded from F&A). This base is effective 11-01-2006 in response to NIH announcement regarding NRSA awards made federal FY2006 and later.

A
P CIRM Proposals/Awards

Base Code P is dedicated for use with California Institute of Regenerative Medicine proposals and awards where the F&A base includes direct expenditures and facilities excluding the following items: equipment, tuition and fee remission, the amount of subcontracts in excess of $25,000, and the total cost of any subcontract to another UC campus. CIRM escalation rates.

A
Y Total Costs (TC)

Base Code Y should be chosen when F&A is allowed on the total cost of a project (both direct and F&A). Base Code Y calculates F&A using TDC (same as Base Code C); then CGA will make manual adjustments at end of the award to assess additional overhead.

A
Z Other (non-conforming base)

Base Code Z should be chosen ONLY when no other base code applies. Departments should NEVER use this base code if any of the above codes match the sponsor’s criteria for applying F&A. Base Code Z calculates F&A using MTDC (same as base code A). CGA will make manual adjustments to correct the F&A.

A