Facilities and Administrative Cost and Recovery

Effective Date: July 1, 2003

Last Reviewed: July 1, 2015

Interim Date: July  21, 2015


This policy establishes the principles for maximal recovery of Facilities and Administrative costs for Meharry Medical College and defines procedures to assure that all requests for waivers are treated equitably. It also establishes the procedure for distribution of Facility and Administrative Cost recovery (Indirect Cost Recovery) from grants and contracts.

Policy Statement

F & A costs are real costs of institutional support for sponsored program activity.

Sponsored program budgets are expected to recover F&A costs at the maximum allowable rate as defined by federal rules and procedures (OMB A-21). Full or partial waiver of F&A costs may be considered with strong justification. Waivers will only be considered in exceptional circumstances, such as instances in which the sponsor’s budget limit will not support the direct costs of the project if full F&A costs are applied. Requests for waivers of F&A costs are to be submitted through the appropriate Chair and Dean to the Director or V.P. of Sponsored Research for approval/review with the Senior Vice President of Finance and Administration as appropriate.
There must be a procedure to distribute indirect cost recoveries to the appropriate schools.

Questions regarding this policy should be directed to the appropriate pre-award staff member in the Office of Sponsored Research.

This policy is currently awaiting approval. You can view the interim policy to the right or by clicking here.