Texas Tech University's F&A rate is re-negotiated every 3 years. This current F&A rate is negotiated between Texas Tech University and the Office of Naval Research. TTU submitted its last proposal in 2022 using its base year activities from fiscal year 2021. From this data our rates for organized research, instruction and other sponsored activities were derived. 

The new rates will be effective 9/1/2023 and should be used immediately for any projects with a proposed start date of 9/1/2023 or later. The proposal team will start applying these to all budgets in process and Cayuse has been updated to reflect the new rates. 

Yes, it is TTU's policy to charge our full, negotiated F&A rate on all projects, unless a sponsor has restrictions on the recovery of F&A costs. If a reduced F&A rate is required by the sponsor, the sponsor must have a published F&A rate policy applicable to all applicants that can be verified by ORS. 

Unless sponsor policies state otherwise, supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates.

Supplemental funding will be considered on a case-by-case basis. Competitive supplemental funding should utilize the new rate.

Proposals previously approved and submitted at the 53% rate (or other appropriate rate) that are awarded after 9/1/23 will be honored for the initial award period of performance proposed, though in some cases a sponsor may allow the new F&A rate and/or may provide additional funding to support the added cost. 

Proposals requiring a revised budget prior to award may have the new rate applied to the revised budget. 

Existing projects will not be affected by this rate increase. If the project is continued past the original funding period, or if new funds are added to the project, then the new rate may be applied, according to sponsor guidance on indirect/F&A costs.

Generally, for carryover funding the F&A rate would remain the same as originally proposed unless the sponsor changes the terms and conditions of the agreement for the subsequent year. This is a case-by-case situation and your Research Administrator, and the Award Team will help guide you through the process. 

In the case of a sponsor (foundation, state, or federal agency) with a published or otherwise well-documented policy on reduced F&A, the university will accept the lower rate. Written documentation of the sponsor's rate restriction needs to be provided when you submit your proposal to ORS.

It is TTU's policy to recover the full F&A costs on projects funded by for-profit or industry sponsors.

In case a for-profit sponsor will not agree to the university's negotiated rates, the reduced rate must be approved by the department chair/center or institute director/administrative head of the submitting unit, the Dean, and the Vice President for Research. Submit the request for approval using the form Request for Reduction/Waiver of F&A*.

In accordance with university policy (OP 65.01), reductions in F&A for projects funded by for-profit organizations will be granted only in extraordinary circumstances.

The usual, annual F&A return is based on total F&A expended for the year on each individual project. The Vice President of Research retains 60% of the F&A collected for each project returns 40% to the college(s) for each PI, co-PI and Senior Personnel listed on the project, according to the allocation of credit listed. Each college has their own process of further returning the F&A.  Check with your department and college for information on their process.

The 8% return is a temporary return off the top of the F&A expended on the project. This will be returned directly to each PI, co-PI and Senior Personnel listed on the project, according to the allocation of credit listed, and will not pass through the usual hierarchy of return. The 8% return will not require a budget plan for expending the funds and must be expended within one year of the end of the project. Any funds left once the project has ended will be returned to the Vice President for Research for normal distribution. This will be monitored by the Vice President for Research.

No, the 8% return will be returned directly to each PI, co-PI and Senior Personnel listed on the project, according to the allocation of credit listed.

No, the planned 8% return is a temporary return, in addition to the traditional return you may receive from collected F&A.

The 8% return will be received at the beginning of each budget period, consistent with the project budget. The OR&I Finance team will monitor expenditures on the award prior to the 8% distribution each year. If expenditures are not occurring timely, the 8% return may be delayed. If the project ends without fully expending the award  funding from the 8% distribution equal to the amount of uncaptured F&A must be returned.

The 8% return should be expended on the project from which it is earned and must be expended within one year of the end date of the project. Any funds left at close out will be returned to the Office of Research and Innovation for normal distribution.

No, if the program being applied to does not have a cap, the 8% F&A return will not be returned.

No – if the F&A is mandated at a reduced rate, TTU will accept that rate, but the 8% return will not be provided.