Effective date: July 1, 2012, including all existing contracts:

Facilities and Administrative (F&A) Rates (also known as indirect cost rates) are established in accordance with the federal government's Office of Management and Budget (OMB) Circular A-21, Cost Principles for Higher Education. These rates are negotiated between IUP and the federal government, with the government establishing the rates. F&A (indirect cost) are applicable to all externally-sponsored projects (grants, contracts, agreements, subgrants, and subcontracts) funded by federal, state, local, or private sponsors. The application of these rates allows IUP to recover certain costs (e.g. facilities, utilities, libraries, administration, student services, etc.) associated with these activities. If 50 percent or more of the project's costs are to be expended on campus, the entire project is charged the on-campus F&A rate. Otherwise, the off-campus rate can be used.

Some granting agencies allow for a percentage of administrative costs to be separately charged. Agency reimbursement of such administrative costs will be treated as F&A revenue and will be directed into the university's F&A account. Distribution of these funds will be in compliance with the university's approved formula for distribution of F&A funds.