Facilities and Administrative costs are real costs incurred by the Schools/Centers and institution for common or joint objectives in support of sponsored research and activities, but cannot be directly identified with a specific grant or contract. The costs result from shared services such as libraries, physical plant operation and maintenance, utility costs, general costs, departmental, units/school and sponsored projects’ administrative expenses, and depreciation for buildings and equipment are real costs built into the University budget.

The F&A costs recovered on grants allow the institution to build, maintain and operate research facilities (as opposed to teaching facilities). It is the obligation of all researchers who use institutional facilities to bring in grant funding along with the attendant F&A costs. The F&A dollars received are not extra dollars, but are part of the budget and are fully used to make the system work. Without them, research laboratories and facilities cannot be built and maintained.

UAB’s F&A cost reimbursement is driven by its Colleges and Universities Rate Agreement (Rate Agreement) negotiated with and mutually executed with its cognizant audit agency, the Department of Health and Human Services (DHHS). Please read the UAB Facilities & Administrative Rate Policy (UAB-AD-POL-0000089).

Additional F&A Resources