Warning: Explicit Language

Most proposal project periods are not going to neatly start on October 1, and will therefore span multiple rate periods in our DHHS agreement.  In order to draw the necessary attention to Wayne State’s variable negotiated rates (and how to express them), you should include language in your budget justification under an “Indirect Costs” heading.  For a little guidance, take a look at the sample language provided here:

* Note:  The italicized portion of this language comes directly from our rate agreement.

 

Indirect Cost Calculations

Wayne State University uses Modified Total Direct Cost (MTDC) to calculate indirect costs.  Modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract).  Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000. The Wayne State University F&A Rate Agreement is negotiated with the Department of Health and Human Services (DHHS), fully executed on November 6, 2014. The agreement has varied rates per fiscal year (10/1 – 9/30). Two F&A rates are applicable to [NUMBER OF PERIODS THAT SPAN MORE THAN ONE RATE] periods:

  • Project Period [X] (beginning [PROJECT PERIOD X START DATE]): [RATE A]% applies for [FIRST NUMBER OF MONTHS] months, [RATE B]% applies for [REMAINING NUMBER OF MONTHS IN PERIOD] …

[APPLICABLE RATE]% applies to all remaining periods.

 

Practical Application: If, for instance, you have a project with 5 periods that beings on April 1, 2015, the indirect cost language included in your budget justification may look like this:

 

Indirect Cost Calculations

Wayne State University uses Modified Total Direct Cost (MTDC) to calculate indirect costs.  Modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract).  Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000. The Wayne State University F&A Rate Agreement is negotiated with the Department of Health and Human Services (DHHS), fully executed on November 6, 2014. The agreement has varied rates per fiscal year (10/1 – 9/30). Two F&A rates are applicable to [2] periods:

  • Project Period 1 (beginning [04/01/2015]): [52.5]% applies for [6] months, [53.0]% applies for [6] months
  • Project Period 2 (beginning [04/01/2016]): [53.0]% applies for [6] months, [54.0]% applies for [6] months

[54.0]% applies to all remaining periods.

 

Feel free to copy-and-paste and change the [BRACKETED/BOLDED] values to those that apply to your project; this material was intended to be shared!  In case you missed it earlier this week, our F&A calculation spreadsheet will help you figure out your own values.  Let us know if you have questions!

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