What is incremental F&A?
For FY04 the academic Vice Presidents of the University decided to change the distribution of F&A recoveries, in light of new F&A rates negotiated in April 2003. At that time, the University’s on-Grounds Organized Research rate increased from 48% to 52%. Per VP and Provost Gene Block’s letter of June 3, 2003 “the incremental recovery resulting from the difference between the 48% and the 52% (or 23.6% and 26% off-Grounds) on new awards as they are signed will be distributed to a central pool managed by the VP for Research”. In FY06 new expenditure types were created to account for the incremental F&A. The new expenditure types are “F&A Costs Greater Than 48%” and “F&A Costs Greater Than 23.6%.” The burdening process of the Integrated System calculates the correct amount of F&A to charge to grants and to credit as revenue. In FY06 it distinguished between incremental F&A and non-incremental F&A. The incremental F&A amount was subtracted from each carrying out org’s F&A recovery total so
