What is the University’s Facilities and Administrative Rate Proposal?

In connection with our sponsored projects, the University collects Facilities and Administrative Costs (also known as indirect costs). Facilities and Administrative Costs represent a reimbursement to KU for our overhead expenses (e.g. utilities, equipment wear and tear, central office support, etc.). The KU Center for Research is responsible for collecting and redistributing all Facilities and Administrative Costs. The University’s strategic plan for the use of this revenue is to further support campus research. Therefore a portion of all Facilities and Administrative revenue is returned to the PI and department or unit. 

The specific reimbursement percentage collected is based upon a negotiated rate with the Department of Health & Human Services, Division of Cost Allocation, Dallas Region (DHHS). This negotiated rate is for a specific period of time and has to periodically be renegotiated. The Comptroller’s Office Financial Reporting team is responsible for creating the initial cost proposal that is negotiated with DHHS. This negotiated rate applies to all Federally-sponsored projects as well as other sponsors. Projects funded by industry have a special rate based upon KU’s negotiated rate. 

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