Frequently Asked Questions
What procedures are followed for establishing an account number?
Grants & Contracts issues an account number only after a grant proposal has been officially awarded or a contract has been fully executed. The Principal Investigator should address budget related questions directly to their Financial Officers or designated account officer.
Does the indirect cost rate assigned at the time of a multiple year project change from year to year?
No. The Facilities and Administrative rate (indirect cost rate) applied to a grant or contract upon award should be used for the entire life (competitive segment) of the project per the Cost Principles stated in OMB Circular A-21 Section G.7.a as follows: "Federal agencies shall use the negotiated rates for F&A costs in effect at the same time of the initial award throughout the life of the sponsored agreement.
What is OMB Circular A-21?
SUBJECT: Cost Principles for Educational Institutions
PURPOSE: This Circular establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. The principles deal with the subject of cost determination and make no attempt to identify the circumstances or dictate the extent of agency and institutional participation in the financing of a particular project. The principles are designed to provide that the Federal Government bear its fair share of total costs, determined in accordance with generally accepted accounting principles, except where restricted or prohibited by law. Agencies are not expected to place additional restrictions on individual items of cost. Provision for profit or other increment above cost is outside the scope of this Circular.
What is 2 CFR Part 215?
SUBJECT: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
PURPOSE: This part establishes uniform administrative requirements for Federal grants and agreements awarded to institutions of higher education, hospitals, and other non-profit organizations. Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sec. 215.4, and Sec. 215.14 or unless specifically required by Federal statute or executive order. Non-profit organizations that implement Federal programs for the States are also subject to State requirements.