Rutgers University F&A Rate Agreement

Rutgers University, one of the leading public research universities in New Jersey, has recently entered into a new F&A (Facilities and Administrative) rate agreement that will govern the allocation of indirect costs associated with its research projects.

The F&A rate agreement is a critical document that determines how indirect costs, such as utilities, facilities, and administrative expenses, are billed to research projects. These indirect costs cannot be easily attributed to a specific project, but they are necessary for the university to support research activities.

Rutgers University`s F&A rate agreement has been negotiated with the federal government`s Department of Health and Human Services, and it covers a period of four years, from July 1, 2020, to June 30, 2024. Under the new agreement, the university`s F&A rate for research will be set at 55% for the first two years and 56.5% for the last two years.

This rate is significant because it directly impacts the university`s ability to conduct research and attract external funding. A higher F&A rate means more money for the university to invest in its research infrastructure, which, in turn, can attract more funding from agencies such as the National Institutes of Health and the National Science Foundation.

The university`s new F&A rate agreement also reflects its commitment to transparency and accountability in its financial operations. Universities that receive federal funding are required to negotiate F&A rates with the government, and these rates must be based on a transparent and verifiable accounting of actual indirect costs.

In conclusion, the new F&A rate agreement between Rutgers University and the Department of Health and Human Services is a significant development for the university`s research enterprise. With a higher F&A rate, the university can invest in state-of-the-art research facilities and attract more external funding, which, in turn, can enhance its reputation as a leading research institution. At the same time, the agreement reflects the university`s commitment to transparency and accountability in its financial operations, ensuring that federal funding is used effectively and efficiently.


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