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During the April 2024 Research Administration Forum, we provided guidance to apply the outgoing subaward and equipment thresholds in the forthcoming updated Uniform Guidance. However, it has since become apparent that there is lack of clarity on exactly when and how Federal sponsors will transition to the new F&A rate definitions (thresholds). 

Please continue to prepare your Modified Total Direct Cost budgets as outlined below in our current Facilities and Administrative Rate Agreement until the Federal government provides formal clarification: 

“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, participant support costs and the portion of each subgrant and subcontract in excess of $25,000.”

When preparing proposal budgets, do not assess indirect (F&A) costs on: 

  • The portion of each subgrant and subcontract issued by UCLA to an outside entity/organization in excess of the first $25,000
  • Equipment, which is defined as an individual item that costs at least $5,000 and has a life expectancy of at least one year.

More details are available on the OCGA website and current Facilities and Administrative Rate Agreement, dated April 22, 2024.