VCOM Institutional Policy and Procedure Manual

VCOM Policy and Procedure

Policy #R010

Edward Via College of Osteopathic Medicine

Policy Order No:

R010

Effective Date:

February 28, 2006

Revised:

February 1, 2012; October 30, 2013; October 31, 2014

Signature on File

______________________________ Dixie Tooke-Rawlins, D.O. President and Provost

F ACILITIES AND A DMINISTRATIVE C OST R ECOVERY POLICY

1. DEFINITION.................................................................................................................................................................... 1

2. ALLOWABLE EXEMPTIONS ...................................................................................................................................... 2

3. VCOM FUNDED PROJECTS ........................................................................................................................................2

4. PROCEDURES ................................................................................................................................................................2

5. DURATION OF POLICY ...............................................................................................................................................3

1. D EFINITION

Facilities and administrative (F&A) costs, often called indirect costs or overhead, are real costs. They reimburse the College for expenses incurred in paying for space and facilities as well as for central administration services utilized on sponsored activities. Any project that is funded with less than full F&A costs is being subsidized by the balance of the College budget. It is impossible to charge each project precisely for the costs of on-campus space used, or for each central administrative task performed. Therefore, each project is charged an amount based on an equitable allocation procedure. All of the College’s actual facilities and central administrative expenses are totaled and then split between sponsored programs and other activities. The subtotal for sponsored programs is divided by the actual total of modified total direct costs (total direct costs less certain categories of costs) of all sponsored programs, and it is then transformed into a rate. This rate is reviewed and approved by the Department of Health and Human Services (DHHS), VCOM’s cogniza nt federal auditor. This rate is applicable to all sponsored programs, not just those sponsored by the federal government. There are two components to this rate: that for administration and that for facilities. The off-campus rate excludes the facilities component, but the direct costs of a project conducted in facilities not owned by VCOM (i.e., an off campus project), must include any rent and other direct costs of being located off campus.

Facilities and Administrative Cost Recovery Policy

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