The Facilities and Administrative (F&A) rate is a percentage measure of the overhead (indirect) costs incurred to support sponsored activity (including organized research, other sponsored activities, and sponsored instruction) conducted by the University.\u00a0 The application of the rate is the mechanism used to reimburse the University for overhead costs incurred in supporting these activities.\u00a0\u00a0 At a high level, the rate is calculated by accounting for all overhead costs allocable to a particular activity and dividing those costs by the activity\u2019s eligible direct costs. (Direct and indirect costs are defined in OMB Circular A-21.)\u00a0 The appropriate rate is then applied to eligible direct cost dollars on each award.\u00a0 The rate is negotiated with our cognizant federal agency (Health and Human Services, Division of Cost Allocation) to cover a multi-year period and upon application, results in indirect costs expenditures that are added to invoices or other billing instruments submitted to the sponsor for payment. The University has multiple F&A rates, which may change year over year and will vary based on the location and type of\u00a0 activity performed.\u00a0 When developing proposals, the appropriate rate should be included.\u00a0 A full table showing recent, current, and future year F&A rates can be found at: http:\/\/www.ogca.emory.edu\/Cost_Studies\/fa.cfm.<\/p>\n