Facilities and Administrative Costs

Accordion Content

It is Rutgers University policy that all sponsored research be charged for the full cost of an externally funded project including all grants, contracts, or other types of agreements. This includes both the direct costs (allowable costs such as salaries, supplies etc. that are used to perform the project) and indirect costs, officially termed Facilities and Administrative (F&A) costs.

  • Facilities and Administration (F&A) costs, also referred to as “Indirect Costs” and/or “IDC”, are those costs associated with the infrastructure that supports the research enterprise that cannot be easily determined for each project.  "Facilities" is defined as depreciation and use allowances, interest on debt associated with certain buildings, equipment and capital improvements, operation and maintenance expenses, and library expenses. "Administration" is defined as general administration and general expenses, departmental administration, sponsored projects administration, student administration and services, and all other types of expenditures not listed specifically under one of the subcategories of Facilities (including cross allocations from other pools).

    The current Rutgers F&A agreements are available on the Division of Cost Analysis and Reporting website. Our team has budget templates to assist in the development of a budget that applies the correct F&A rates, as well as a helpful matrix to assist in determining which F&A rate is appropriate for the proposed work.

  • All proposals for grants, contracts and other sponsored agreements submitted by Rutgers University must include the allowable federally negotiated F&A cost rates. The F&A rate applied to each project will depend on the type of work being performed (i.e., research, training, other sponsored activity) and where the majority of the expenditures will occur (i.e., on- or off-campus). Instructions on the determination of the type of F&A rate (on or off campus) to be applied can be found at On Versus Off Campus F&A Determination.

  • Rutgers will accept a lower F&A rate when the Sponsor has clear, published guidance imposing restrictions on F&A and such restrictions are uniformly applied by the specific Sponsor to all award recipients.  Note that “published guidance” may appear on a Sponsor’s website, within the Sponsor’s opportunity announcement, or within the award notice or agreement itself.  When a Sponsor’s published rate is lower than the Rutgers’ approved rate(s), the allowable F&A rate is applied to ALL COSTS (Total Direct Costs, or TDC), unless the Sponsor specifically excludes certain categories. In these cases, a formal F&A waiver or reduction request is NOT required.

    New Jersey State-sponsored projects are subject to a modification of the Application of F&A Costs on Sponsored Programs Policy Memo [07/10/2019], depending on the source of funds supporting the work. If the primary source of funding is state funds, then Rutgers can accept an F&A rate of 10% or more of TDC, unless the Sponsor excludes certain categories. However, if the primary source of funding is federal funds flowed down through the State, then Rutgers’ federally negotiated rate(s) MUST be budgeted.

  • In cases where a medical or pharmaceutical company funds a clinical trial, the indirect cost rate used is the published rate located at Institutional Information and is applied to Total Direct Costs (TDC). This rate is not based on the type of sponsor but the fundamental nature of the work, for example in testing the efficacy of a drug or a device or a clinical trial.

  • In the absence of a Sponsor’s published policy that is uniformly applied to all awardees, a PI may request a waiver of the Rutgers’ federally negotiated F&A rate(s) by completing the “Request for Reduction or Waiver of Indirect Costs Associated with a Sponsored Research Program” form.

    The form must be completed in its entirety and must be signed by the PI, the Department Chair / Institute Director, and the Dean before being sent to the Office for Research for review and approval. The form must include an acceptable justification for the reduction or waiver of F&A along with a proposed budget. The complete package must be submitted to Proposal Exceptions for consideration. Please allow at least ten (10) business days for review. No proposal and/or agreement involving reduced or waived F&A costs will be submitted or signed, respectively, with any Sponsor prior to approval by the Office for Research.


Diane Ambrose

Rutgers-New Brunswick

Assistant Vice President, Sponsored Programs, Policy, and Training

Rutgers-New Brunswick

For Federal, State, or Not-for-profit Sponsors

Melissa Matsil

Executive Director

For Industry/Commercial Sponsors

José Miguel Román

Vice President, Research Administration

Office for Research Signatory of Waivers/Reductions