Division of Research Financial Management FY2021
Description: Division of Research Financial Management FY2021 Fringe Rates on Grants Presented September 2020 New Fringe Rate Agreement for FY21 Increased to additionally recover 760K for each of the next three years. As of FY19, a deficit of 2.3
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slide1. Division of Research Financial Management FY2021 Fringe Rates on Grants Presented September 2020<br>
slide2. New Fringe Rate Agreement for FY21 Increased to additionally recover $760K for each of the next three years. As of FY19, a deficit of $2.3 million.
Increased to additionally recover $1.2 million for each of the next three years. As of FY19, a deficit of $3.5 million.<br>
slide3. Benefits included in FY21 Fringe Rates<br>
slide4. Historical Grant Fringe Rates per Negotiated Agreements (a) For these fringe rates to apply, PostDocs in the past would have been hired into faculty, or the newer PostDoctoral Fellow, job family.<br>
slide5. Treatment of Fringe Benefits on Grants Regulated by Uniform Guidance - 2 CFR § 200.431 - Compensation - fringe benefits
Treated as compensation in addition to regular Salaries & Wages
2 methods to charge fringes: Specifically Identified per the Individual or Fringe Rates
Rates limited to those negotiated with Department of Health and Human Services (DHHS)
Fringe Rates charged to federal awards must be equitably based on actual costs for the entire University
Multiple-year rates in past agreements
Current FY21 rates based on FY19 actual costs and prior year surplus/deficits
New rate proposal to be submitted by 12/31/20 for FY22 based on FY20 actuals
May result in a multiple-year agreement (predetermine rates similar to F&A rates)
May elect to negotiate annually (fixed rates carry-forward)<br>
slide6. Fringe Rate Proposal Maximus Consulting Hired
Expert at negotiating with DHHS
Since last agreement signed in 2012, knew data would be challenging
Last Agreement data collected from Banner system
New Agreement data would be drawn from Workday
DHHS would most likely require multiple-year analysis<br>
slide7. Fringe Proposal for FY21 Rates Proposal to DHHS that resulted in FY21 Fringe Rates included:
FY17-FY19 data analysis required to True-up (A review of Actual Costs and Recoveries)
Compensation: (Fringes and Salaries & Wages) reconcilable to Financial Statements
Determine under/over recoveries: What was charged via rates and actual costs
Terminal Leave Analysis
All above combined into Fringe Benefits True-Up & Rate Setting for FY21
FAU under recovered in the amount of $2 million for the 3 year period
Allowed to include the under recovery over 3 years ($0.7 million each year) effective FY21<br>
slide8. Fringe Proposal For FY22 Rates Proposal to DHHS for FY22 Fringe Rates to include:
True-Up of FY20 Rates to Actuals + prior years’ carryforwards
Comparison of FY20 actual fringe costs to the FY20 Fringe rates charged. Differences will be absorbed in rates proposed for FY22 which will also include year 2 of the aforementioned under recovery.<br>
slide9. Projected Rates Requested in Proposal<br>
slide10. Projected Rates Requested in Proposal Compensation – Salaries & Wages Actuals<br>
slide11. Assumptions included in true-up table Assumptions Made in Analysis include:
Inflation factors were applied to all job families for projected FY21 fringe rates.
For all job families except OPS, inflation factors were determined by taking the average increases of FY18 over FY17 and FY19 over FY18 actual costs.
Factors used for OPS included only FY19 over FY18 costs.
Terminal Leave was calculated based on historical expenses and recovery of sponsored funds only.<br>
slide12. Projected Rates Requested in Proposal Backing into the Projected FY21 Fringe Rates submitted in the Proposal<br>
slide13. Fringe Rates Requested vs Negotiated Rates Awarded<br>
slide14. Thanks for inviting me to talk about the Fringe Rates charged to Grants If I can be of further assistance:
Lynn Asseff
Assistant Vice President, Financial Management
lasseff@fau.edu<br>
slide2. New Fringe Rate Agreement for FY21 Increased to additionally recover $760K for each of the next three years. As of FY19, a deficit of $2.3 million.
Increased to additionally recover $1.2 million for each of the next three years. As of FY19, a deficit of $3.5 million.<br>
slide3. Benefits included in FY21 Fringe Rates<br>
slide4. Historical Grant Fringe Rates per Negotiated Agreements (a) For these fringe rates to apply, PostDocs in the past would have been hired into faculty, or the newer PostDoctoral Fellow, job family.<br>
slide5. Treatment of Fringe Benefits on Grants Regulated by Uniform Guidance - 2 CFR § 200.431 - Compensation - fringe benefits
Treated as compensation in addition to regular Salaries & Wages
2 methods to charge fringes: Specifically Identified per the Individual or Fringe Rates
Rates limited to those negotiated with Department of Health and Human Services (DHHS)
Fringe Rates charged to federal awards must be equitably based on actual costs for the entire University
Multiple-year rates in past agreements
Current FY21 rates based on FY19 actual costs and prior year surplus/deficits
New rate proposal to be submitted by 12/31/20 for FY22 based on FY20 actuals
May result in a multiple-year agreement (predetermine rates similar to F&A rates)
May elect to negotiate annually (fixed rates carry-forward)<br>
slide6. Fringe Rate Proposal Maximus Consulting Hired
Expert at negotiating with DHHS
Since last agreement signed in 2012, knew data would be challenging
Last Agreement data collected from Banner system
New Agreement data would be drawn from Workday
DHHS would most likely require multiple-year analysis<br>
slide7. Fringe Proposal for FY21 Rates Proposal to DHHS that resulted in FY21 Fringe Rates included:
FY17-FY19 data analysis required to True-up (A review of Actual Costs and Recoveries)
Compensation: (Fringes and Salaries & Wages) reconcilable to Financial Statements
Determine under/over recoveries: What was charged via rates and actual costs
Terminal Leave Analysis
All above combined into Fringe Benefits True-Up & Rate Setting for FY21
FAU under recovered in the amount of $2 million for the 3 year period
Allowed to include the under recovery over 3 years ($0.7 million each year) effective FY21<br>
slide8. Fringe Proposal For FY22 Rates Proposal to DHHS for FY22 Fringe Rates to include:
True-Up of FY20 Rates to Actuals + prior years’ carryforwards
Comparison of FY20 actual fringe costs to the FY20 Fringe rates charged. Differences will be absorbed in rates proposed for FY22 which will also include year 2 of the aforementioned under recovery.<br>
slide9. Projected Rates Requested in Proposal<br>
slide10. Projected Rates Requested in Proposal Compensation – Salaries & Wages Actuals<br>
slide11. Assumptions included in true-up table Assumptions Made in Analysis include:
Inflation factors were applied to all job families for projected FY21 fringe rates.
For all job families except OPS, inflation factors were determined by taking the average increases of FY18 over FY17 and FY19 over FY18 actual costs.
Factors used for OPS included only FY19 over FY18 costs.
Terminal Leave was calculated based on historical expenses and recovery of sponsored funds only.<br>
slide12. Projected Rates Requested in Proposal Backing into the Projected FY21 Fringe Rates submitted in the Proposal<br>
slide13. Fringe Rates Requested vs Negotiated Rates Awarded<br>
slide14. Thanks for inviting me to talk about the Fringe Rates charged to Grants If I can be of further assistance:
Lynn Asseff
Assistant Vice President, Financial Management
lasseff@fau.edu<br>