Implementing Stepped F&A Rates in Kuali

Overview: Detailed budgets created in Kuali Development prior to 12/19/2022 can be synced with new F&A rates. Kuali will then automatically calculate the correct amount of F&A to charge. For those who use Summary Budgets, we have developed two alternatives to reach the correct amounts.

Background Assumptions

In these examples, we are assuming the indirect cost rate being used is Standard Federal MTDC.

MTDC stands for Modified Total Direct Cost and is shorthand for the practice of deducting or excluding certain costs from the Base used to calculate the Indirect Costs.

Direct Costs less Excluded Costs = Base X F&A Rate  =  Indirect Costs

Standard Federal MTDC excludes Equipment, Participant Support Costs, Tuition, the cost of each Subaward in excess of $25,000, and a few other categories, as detailed in the Negotiated Indirect Cost Rate Agreement (NICRA) - see link from Fact Sheet.

In this example of a budget starting 10/1/2022 to 9/30/2023, we have indirect costs that cross over two rate years.

Kuali has been programmed to perform this calculation automatically, and two more manual methods follow for other situations when entering a detailed budget in Kuali is not practical.

How to Sync to New F&A Rates – For Detailed Budgets Built prior to 12/19/2022

STEP 1 - On or after 12/19/2022, open the detailed budget in Kuali.

STEP 2 - Navigate to the Rates tab.

STEP 3 - Click Sync to Current Institutional Rates.

That’s it! The budget will be updated to the current rates then in effect.

How to Calculate New F&A Rates using a Kuali Summary Budget

If a proposal does not easily lend itself to a detailed budget in Kuali, a simple Summary Budget may be used to determine the correct F&A calculations.

STEP 1 - Open the proposal development record in Kuali. From the Budget tab, click Add Budget. Create a Budget Version, select the option to Start a summary budget, give the budget a meaningful name such as “Summary Budget for F&A Calculations” and click Create Budget.

STEP 2 -  Click the Non-Personnel Costs tab. Click Assign Non-Personnel. Enter regular direct costs as “Other Direct – with F&A”.

STEP 3 - Next enter direct costs that do not incur indirect costs as “Other Direct – No F&A”.

Repeat as needed for each budget period. Your final budget will resemble something like this:

Note: Be sure to sync to current institutional rates if budget was started prior to 12/19/2022.

STEP 4 - Next click Budget Versions near the top of the screen. Choose Print under the Action drop-down menu that pops up.

You can also access the print menu by clicking the Action drop-down menu while in the Budgets tab (after you click Return to Proposal).

STEP 5 - Next select Budget Summary Report and then Print. In this budget printout you will see a page that shows the detailed calculation of indirect costs, as in this example:

Step 6 - Load this Budget pdf to Internal Attachments. Now you (and OPAS reviewers) can verify that your budget is using the correct F&A calculations.

How to Calculate New F&A Rates using an Excel F&A Calculator

Tool: Calculate Split F&A Rates for a Project Period (Excel)

As an alternative to using a Kuali Detailed or Kuali Summary budget, OPAS has developed an Excel F&A Calculator for determining the correct F&A calculations.

First, add start and end dates for each project period.

Last, upload the F&A calculation spreadsheet as an internal attachment in the Kuali record.