Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that those terms are used interchangeably throughout MIT documents and sponsor guidelines and program specifications. MIT prefers the term F&A, which is consistent with federal government usage. The SAP system, however, uses the term “overhead.”
Under-recovery is the difference between the current negotiated F&A rate MIT charges to a sponsored research project and the rate a sponsor is willing to pay. Under-recovery may occur when a sponsor dictates a rate and/or base less than the F&A recovery that would result using the standard federal research rate.
If your DLC identifies a potential under-recovery condition when you are developing a research proposal, follow the MIT policy on research under-recovery described on the Research Administration Services (RAS) website.
The Details
Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that those terms are used interchangeably throughout MIT documents and sponsor guidelines and program specifications. MIT prefers the term F&A, which is consistent with federal government usage. The SAP system, however, uses the term “overhead.”
Under-recovery is the difference between the current negotiated F&A rate MIT charges to a sponsored research project and the rate a sponsor is willing to pay. Under-recovery may occur when a sponsor dictates a rate and/or base less than the F&A recovery that would result using the standard federal research rate.
If your DLC identifies a potential under-recovery condition when you are developing a research proposal, follow the MIT policy on research under-recovery described on the Research Administration Services (RAS) website.
