The University negotiates a new Fringe Benefit and Facilities and Administrative (F&A) cost rate agreement with the federal government. This date of the current rate agreement is October 24, 2023. The new rates have been loaded to Kuali Research for budget development.
Facilities & Administrative Costs also known as Indirect Costs are defined by the federal government:
“as those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved” (2 CFR §200.56)
For the full agreement, download F&A Signed Agreements FY2024
Cost Rate Agreements
| FISCAL YEAR | ORGANIZED RESEARCH | SPONSORED TRAINING | OTHER SPONSORED ACTIVITY | |||
|---|---|---|---|---|---|---|
| On-Campus | Off-Campus | On-Campus | Off-Campus | On-Campus | Off-Campus | |
| FY 2024 through FY 2027 | 55.5% | 26.0% | 50.5% | 26.0% | 38.0% | 26.0% |
| FY 2018 through FY 2023 | 54.5% | 26.0% | 52.2% | 26.0% | 39.9% | 26.0% |
| FY 2016 through FY 2017 | 54.0% | 26.0% | 52.2% | 26.0% | 39.9% | 26.0% |
Corporate Clinical Trial and Commercially Sponsored Research Rates: The corporate-sponsored clinical trials rate of 40% of Total Direct Costs (TDC) and the basic/allied research rate for corporate and commercial sponsors of 50% of TDC are not regulated by the rate agreement with the federal government. You can see these rates listed at https://www.umaryland.edu/spa/budgets-and-expenses/fa-cost-rates/.
These rates are applied to either total direct costs (TDC) or "modified total direct costs" (MTDC) as noted. Modified total direct costs consist 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, 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.
Grants or contracts will not be subject to more than one rate. If more than 50 percent of a project is performed off-campus, then the off-campus rate will apply to the entire project.
Any exceptions to the applicable rates must be requested by the Principal Investigator in writing and approved in writing by the Dean. The approved request must be submitted with the proposal to ORD for final approval by the Vice President for Research and Development prior to the processing and campus sign-off of the proposal.
If you have any questions, please contact Rama Camara Spasic, Director, Sponsored Projects Accounting and Compliance at 410-706-7759 or rcamaraspasic@umaryland.edu.
Fringe Benefit Rates
Fringe benefits are charged using the rates listed below.
Faculty and Staff fringe benefits rate include: FICA/Medicare, unemployment insurance, workers’ compensation, dental, health and prescription drug insurance, pension, post-retirement health benefits, vacation leave payouts, employee tuition remission and employee assistance and wellness programs.
The Legislated benefits rate includes: FICA/Medicare, unemployment insurance, workers’ compensation, employee tuition remission and employee assistance and wellness programs.
The Limited benefits rate includes: FICA/Medicare, unemployment insurance, workers’ compensation, dental, health and prescription drug insurance, employee tuition remission and employee assistance and wellness programs.
Fringe Benefit Planning Rates FY24-FY26
| Apply to Accounts | FY24 | FY25 | FY26+ (Proposed) | Costs Recorded In Account | |
| Faculty | 1011 – Faculty 9/10 mo. | 28.8% | 28.5% | 29.3% | 2790 – Fringe rate Faculty |
| 1012 – Faculty 12 mo. | |||||
| Staff | 1013 – Exempt staff | 39.2% | 39.1% | 38.4% | 2791 – Fringe rate Staff |
| 1014 – Non-exempt staff | |||||
| 2194 – Non-exempt GED Program | |||||
| Legislated Benefit | 2071 – Faculty | 8.3% | 8.2% | 8.2% | 2793 – Fringe rate Legislated Benefit |
| 2072 – Exempt staff (C1) | |||||
| 2073 – Non-exempt staff (C1) | |||||
| 2080 – Summer salaries | |||||
| 2085 – Supplemental Pay | |||||
| 2110 – Overtime | |||||
| 2120 – Shift differential | |||||
| 2130 – On call pay | |||||
| 2140 – Bonus Payments | |||||
| 2074 – College Work study (summer) | |||||
| 2075 – Students (other than CWS) (summer) | |||||
| 2090 – Contractual employee (C2) (Until FY15) | |||||
| Limited Benefit | 1021 – Post Docs/Fellows | 18.8% | 19.4% | 20.5% | 2792 – Fringe rate Limited Benefit |
| 2090 – Contractual Employee (C2) (FY16+) | |||||
| Students | 1020 – Graduate Assistants | 0% | 0% | 0% | N/A |
| 2074 – College Work study | |||||
| 2075 – Students (other than CWS) | |||||
| Other | 2196 – Accrued Leave Payout | 0% | 0% | 0% | N/A |
Fringe Benefit Rate Announcements
- FY2026 Fringe Benefits Planning Rate Announcements
- FY2025 Planning Rates Announcement Version 2
- FY25 Fringe Benefit Planning Rates Announcement
- FY24 Fringe Benefit Rate Announcement
- FY2024 Fringe Planning Rates Announcement
- FY23 Fringe Benefit Rate Announcement
- FY22 Fringe Benefit Rate Announcement
- FY2022 Fringe Planning Rates Announcement
- FY21 Fringe Benefit Mid-Year Rate Change Announcement
- FY21 Fringe Benefit Rate Announcement
- FY2021 Fringe Planning Rates Announcement
- FY20 Fringe Benefit Rate Announcement
- FY19 Fringe Benefit Rate Announcement
- FY18 Fringe Benefit Mid-Year Rate Change Announcement
- FY18 Fringe Benefit Rate Announcement
- FY17 Fringe Benefit Rate Announcement
- FY16 Fringe Benefit Rate Announcement
- FY15 Fringe Benefit Rate Announcement