Introduction to Sponsored Projects What is a Sponsored Project? An activity must have all of the following characteristics to be considered a sponsored project: 1. Some or all of the funding for the project is coming from an external sponsor. This can be a private
foundation, a non-profit group, industry or a governmental agency. 2. The sponsor is providing funding to USF – not to benefit USF – but to obtain USF’s help in advancing a mission that is of interest to the sponsor. 3. The sponsor’s funds can be used only for the purpose specified by the sponsor and only during a
specified time frame. When this period is over, the sponsor is not required to provide USF with any
additional funding. 4. The sponsor expects USF to deliver specific outcomes in exchange for their funding support. The
sponsor can withhold or request the return of their funding if USF fails to provide the agreed upon
outcomes. A sponsored project is not a consultancy, scholarship, fellowship, prize, or any other type of financial aid given to an individual. A sponsored project is not an unrestricted “gift” given by an individual or agency without any expectation of receiving something of value in return. Why should USF seek Sponsored Projects? When USF receives external funding for a purpose that relates to the University’s teaching, service, and research missions, both the University and the Sponsor benefit. For example, USF is always interested in improving the quality of its undergraduate instruction. The National Science Foundation (a federal sponsor) is interested in improving the way science is taught in the nation’s schools, including higher education. When the National Science Foundation issues a grant to USF, both parties achieve their aims. A faculty member that submits a proposal and receives an award from the NSF to develop and evaluate new science teaching content and/or procedures at USF can advance NSF’s agenda nationwide by disseminating project results while providing USF students with state of the art science instruction. This is a win-win situation. Can funding from sponsored projects be used to increase my salary? The federal government prohibits any federal funds from being used to increase an individual’s salary “rate.” This is not an allowable cost. The federal government also expects the University to treat all of its sponsors consistently. Therefore, even if external funds are received from a private sponsor, USF is required to charge that sponsor the same rate as would be charged to the federal government. What can Sponsored Projects do for me? USF faculty members are charged with the tasks of providing excellent instruction and meaningful service to the USF community as well as making a valuable contribution to their academic discipline. Tenure and promotion decisions are based on faculty performance in these areas. Sponsored projects can provide faculty with the funds needed to travel to research sites and conferences, hire undergraduate and graduate students to assist them in carrying out scholarly activities that also serve as learning opportunities for students, purchase equipment needed for research and instruction, and reach out through community service to promote social justice in the larger society. USF has a time release-time policy that allows faculty supported by sponsored projects during the academic year to be released from one course per semester with college/school approval. This allows faculty the time needed to engage in sponsored project activities that exceed the normal time set aside for faculty scholarship. Sponsored projects can also provide faculty with summer salary. Faculty are paid for a nine month academic year, even if their salary is paid over a twelve month period. Faculty can request funding support for their time on a sponsored project in the summer based on their previous academic year salary rate. This supplemental salary gives faculty an opportunity to continue their scholarship without interruption. What types of Sponsored Projects are available? Sponsored projects awarded to the University fall into four categories that are not always mutually exclusive: Research: Activities that primarily involve the creation, dissemination, and evaluation of new information or products. Training: Activities that generate University course credit for participating individuals. Service: Activities that benefit others directly or indirectly but do not generate University course credit for participants. Other: Donations of equipment or software to generate specific outcomes for a sponsor. What are Facilities and Administration (F&A) Costs? Funding for sponsored projects can be broken down into two components:  | Direct costs | | F&A (Indirect) costs. |
Direct costs are costs that must be restricted to carrying out specific project activities, e.g., salaries, supplies, travel. This type of funding must be spent during a specific period of time. Thus, direct cost funding can never be a consistent source of revenue for a University. It is best used as a catalyst for faculty research, student training experiences, and experimentation with new programs and services. F&A costs formally known as Indirect or Overhead Costs are costs that are more difficult to assign to any one sponsored project activity, e.g., use of facilities such as the Library or the cost of University administrative services such as Payroll and Human Resources. Sponsored projects typically make use of some or all of the University’s services and its space and facilities as well. The Federal government recognizes that sponsored projects are a cost to the University and allows the University to charge the Federal government for the “indirect costs” associated with any federally funded sponsored project. These costs are now officially referred to as Facilities and Administrative Costs, or F&A. Because F&A costs are difficult to ascribe to any individual sponsored project, the Federal government works with the University to negotiate an F&A “rate” for sponsored projects that take place on the University campus and another F&A cost rate for off campus projects. What are USF’s F&A Rates? USF’s F&A rates are: On Campus 58.2% of salaries and wages Off Campus 23.6% of salaries and wages These percentages are applied to the salaries and wages of a sponsored project. As salary and wage funds are paid, the University “recovers” these F&A costs. If no sponsored project funds are spent for salaries and wages, the University receives no F&A costs. NOTE: MTDC costs do not include equipment, subcontracts in excess of $25,000, or any capital improvements or renovations. Example 1: Salaries and Wages = $100,000 Other Costs =$100,000 F&A costs: 58.2% X 100,000 = $58,200 Total Project Costs = Salaries and Wages + Other + F&A = $258,200. Example 2: Salaries and Wages = $0 Other Costs =$200,000 F&A costs: 58.2% X $0 =$0 Total Project Costs = Salaries and Wages + Other + F&A = $200,000. |
Are USF’s rates higher than average? Although the rates above may appear high, they are commensurate with other ACJU institutions. For example, Loyola University in New Orleans charges 57% of salaries and wages and Santa Clara University charges 57.6%. Universities that base their F&A costs on a Modified Total Direct Costs or MTDC base instead of a salaries and wages base typically have a lower rate. However, the MTDC rate is applied to all project costs, not just salary and wages. The result, as seen in the examples below, is that these universities recover more actual indirect costs even though their F&A rate may be lower. NOTE: MTDC costs do not include equipment, subcontracts in excess of $25,000, or any capital improvements or renovations. Example 1: Salaries and Wages = $100,000 Other Costs =$100,000 F&A costs based on salaries and wages: 58.2% X $100,000 = $58,200 Total Project Costs = Salaries and Wages + Other + F&A = $258,200 Example 2: Salaries and Wages = $100,000 Other Costs =$100,000 F&A costs based on MTDC : 48.2 % X $200,000 = $96,400 Total Project Costs = Salaries and Wages + Other + F&A = $296,400 |
Why doesn’t USF use a MTDC base? USF’s current F&A rates for on campus and off campus sponsored projects are fixed until May 31, 2007. When it is time to renegotiate these rates, the advisability of using the S&W base will be reevaluated. The important facts to remember about indirect or F&A costs are: 1. F&A costs are real costs to the University. 2. F&A cost rates are estimates of what it costs the University to administer a sponsored
project. 3. F&A funds are generated as expenditures are made in appropriate (S&W or MTDC)
budget categories of the sponsored project account. 4. When using an S&W base, sponsored projects with lower salary and wage charges will
generate less indirect cost funds than sponsored projects with greater salary and wage
costs. 5. Not all external funding agencies pay F&A costs. What happens if an agency does not pay USF’s F&A costs? When a sponsor has a formal written policy of paying no F&A costs or a lesser amount of F&A than USF would normally charge, USF will accept the Sponsor’s F&A policy and show the difference between USF’s rate and the allowed rate as cost share for the project. Can USF choose to waive its F&A costs for a particular project? USF can waive all or any part of its F&A charges as long as these charges are shown as University cost share. The University's actual contribution is clear to the sponsor. The goal is to treat all sponsors consistently as is required under federal regulations. Approval to waive F&A costs on a sponsored project can only be given by the Provost or Associate Provost. This is to ensure that the waiver is given only in very unusual circumstances so as not to jeopardize USF’s future F&A rate negotiations. What does USF do with recovered F&A funds? F&A funds are provided by sponsors to “compensate” USF for the administrative services and facility costs that already have been spent on sponsored projects. Since many of USF’s sponsors do not fully pay for these costs, USF is not recovering all the costs associated with its sponsored project activities. USF, therefore, has chosen to use its recovered F&A funds to support the Office of Sponsored Projects in order to assist USF faculty and staff obtain sponsored projects that support and enhance the mission of the University while providing greater F&A support to the University. What are some technical terms I need to understand? The Code of Federal Regulations, Title 42, Part 52, defines a Principal Investigator (PI) as "the single individual designated by the grantee in a grant application who is responsible for the scientific and technical direction of the project."
The Co-Principal Investigator also has decision-making power with regard to the conduct of the research and reports to the Principal Investigator who is ultimately responsible for the conduct of the project.
The terms "Project Director" and "Co Project-Director" reflect the same programmatic and administrative responsibilities above when directing non-research sponsored projects. Where can I get help with Sponsored Projects? For proposals to private foundations, faculty and staff should contact the Office of Advancement to discuss their project prior to an initial inquiry or proposal submission (x6813). Failure to do so may jeopardize USF’s ability to raise funds from private foundations. For proposals to all other sponsors, contact the Office of Sponsored Projects (call x5203 or visit Lone Mountain 132). OSP staff will help you: a. Identify appropriate funding sources and set up automatic funding alerts. b. Interpret agency guidelines and USF policies for grants and contracts. c. Review and edit proposal content d. Contact program officers e. Develop and review proposal budgets. f. Complete the university’s Proposal Review Form with final budget figures. g. Request budget revisions and no cost extensions h. Provide proposal writing instruction
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