Why is F&A charged on grants and contracts?
F&A cost recovery recognizes that the work on the grant or contract is being conducted through the University – whether on or off campus – using University resources, such as facilities, utilities, libraries and administration. Using these resources is a real cost which, if not reimbursed, would adversely impact department budgets, student fees, and university resources. Sponsoring agencies recognize this fact and are willing to pay for indirect costs. Research Administration is responsible for including these indirect – but real – costs in proposed contract budgets so that all the costs associated with externally-funded projects may be reimbursed to Sacramento State.
