Facilities and Administrative Costs

Facilities and Administrative (F&A) recoveries, also known as “indirect cost recoveries (ICR),” are payments from funding agencies to the University to reimburse for costs that are essential to conduct federally-sponsored research in an effective, efficient, safe, and secure environment. F&A costs represent real expenses incurred by the University to provide and maintain adequate space and equipment for research, support functions for ensuring federal research compliance, safety, and necessary controls for ensuring proper human subject and animal experiments. Examples of these F&A costs include:

• Maintenance of buildings and equipment dedicated to research
• Research administration and compliance activities that are required by law, including:
  • Protection of human and animal subjects
  • Management and disposal of chemical and biological agents used in research
  • Research integrity programs
• Utilities, internet, and telecommunications used in research
• Library services related to research

The University dedicates considerable space to conduct research in partnership with its funding agencies. The space footprint and cutting edge equipment necessary to conduct federal research at the University would not be possible without the funding for these costs.

To find information related to fringe benefit rates, please visit the page Learn About Fringe Benefit Rates.

F&A Facts at Columbia University

Columbia’s F&A cost reimbursement processes are efficient, regularly reviewed, and negotiated with the government. Like other research institutions, Columbia is required to submit detailed support on the specific spaces that are dedicated to conducting research, and costs incurred to support research. This information is provided to the federal government at regular intervals (typically every 4 years). A University rate proposal undergoes a rigorous government-led review and negotiation before the government approves any reimbursement rates for space and support costs. It is important to note that the government-approved rate is lower than the actual cost incurred by the University in support of research. The University funds unreimbursed costs from other sources, as a commitment to its mission to advance research. 

The University negotiates multiple F&A reimbursement rates with the government, including an “on-campus” rate that reflects the cost of space and administration on campus, and an off-campus rate, which is considerably less. The rate applied for any particular project depends on the location of the research and the type of expenditure. The University’s current rate of reimbursement for space and support costs for research conducted on its Morningside and Medical Center campuses is 64.5%, more than half of which is related to costs specifically for research space and equipment. The rate for Facilities and Administration reimbursement is applied to the direct costs of a particular project. For example, an award with $100,000 in direct expenses (faculty time, post doctoral work, research travel, supplies) could receive 64.5% of the $100,000 direct costs in F&A reimbursement, such that the total project budget is $164,500. Therefore, the space and research support costs of $64,500 are 39% of the total award budget (calculated as $64,500 / $164,500 = 39%).

Importantly, in practice, not all expenditures on a grant are applicable to the full F&A reimbursement rate. For example, equipment purchases are excluded from direct costs to which the rate is applied because they are reimbursed through the recovery for facilities costs. An award with a sub-contract to another institution would have the sub-awardee receiving the applicable F&A reimbursement, as that institution is carrying costs to support the research activity. As a result, given these components in Columbia’s grant portfolio and location of its research, the University’s effective rate of reimbursement is far less than 64.5%.

Additional information from external sources on indirect cost recoveries can be found below:

• Council on Government Relations and other Association Materials
  • FAQ on Costs of Research and other resources
  • Costs of Federal Research Infographic
  • Breaking Down the Costs of Research at Universities
• Coalition for Life Sciences
• Association of American Universities