Boston University Medical Campus
Sponsored Programs

Facilities and Administrative Costs, Fringe Benefits Rate

DHHS Rate Agreement, Feb 10, 2009
Fringe Benefits Rates, Feb 10, 2009

Facilities and Administrative Rates

The off-campus rate is for use in those situations where effort is performed at locations that are not owned or leased by Boston University. When 50% or more of a Project is performed off campus, the off campus rate applies to the entire project. When 50% or more of a project is performed on campus, the on campus rate applies to the entire project.

The affiliate rates are used to apportion occupancy related costs to those grants and contracts awarded to Boston University but performed in part at the Boston Medical Center. The affiliate rate together with the off campus rate represent the full indirect costs.

Space Allocation

If 50% or less of the project is performed in Boston Medical Center (BMC) space, then the operations and maintenance portion of the BMC rate (42.5%) must be appropriately applied to that portion of the space in addition to the BU administrative rate of 26% which is also applied to that space. The research rate depending upon type of application aforementioned, is then applied to the remaining prorated space. If more than 50% of the project is performed in BMC space, then you must apply through BMC. Supplements have an additional set of rules.

What is MTDC and How to Compute It

Facilities and administrative cost rates are based on modified total direct costs (MTDC), which equals the total direct costs less the following:

• subcontract costs (object code 958) exceeding $25,000 on each subcontract;
• equipment costs (non-expendable, tangible property that has a useful life of 1 year or more and a cost of $5,000 or greater, i.e., object codes 930, & 955);
• student aid (trainee stipends and trainee tuition allowance, i.e., object codes 947,948 & 949);
• room and/or board allowance (object code 928);
• patient services (object code 933);
• external rent (object code 997);
• alteration and renovation costs;

What is TDC (Total Direct Cost)?

Facilities and administrative cost rates for industry clinical research accounts are applied on a total direct cost (TDC) basis. TDC includes all direct cost items.

Fringe Benefit Rates (rev. 02/10/2009)

Fringe benefit rates for grant and contract proposals beginning July 1, 2008 – June 30, 2009 are as follows:

Fringe benefit rates for grant and contract proposals beginning July 1, 2009 – Until Amended are as follows:

In accordance with a recent change to federal regulations governing the calculation of fringe benefit rates, Boston University has removed from the federal fringe benefit cost pool the costs associated with tuition remission for family members of employees. Although the federal government has disallowed tuition remission for family members as a component of the fringe benefit rate, Boston University’s fringe benefit policy for faculty and staff, including family members, remains unchanged. In order to continue this benefit for our employees and their family members, it is necessary to establish separate fringe benefit rates for federal awards (including awards with federal pass-through funding) and non-federal awards. The non-federal fringe benefit rates include the costs of tuition remission for family members of employees.The fringe benefit rates will be applied on a salary and wage basis. The consultant fringe benefit rate will be applied to independent contractors deemed to be “employees” for federal withholding purposes.The above rates are effective immediately on new proposals for the period indicated. Questions regarding the use of these rates on proposal budgets should be referred to the Office of Sponsored Programs, BUMC, at 638-4600.

The Fringe Benefit rate for Boston Medical Center employees paid from Boston University funds is 26.0%.