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I am pleased to report that we have completed the facilities and administrative (F&A) reimbursement rate negotiation with the U.S. Department of Health and Human Services (DHHS). The result is a two point increase in our on-campus research rate, effective July 1, 2007, from the current 44% to 46%.
Further, the rate will increase automatically by half a point in 2010 and by another half a point in 2011, at which time we will submit a new proposal to DHHS.
This was an extremely successful F&A rate negotiation. The outcome reflects numerous additions and enhancements to research space, as well as other KU investments since the existing rate was established in 2003.
Recognition is due Comptroller Diane Goddard, her staff, and staff at KUCR for their hard work in preparing KU’s proposal, working with consultants and the site visit team, and handling the final negotiations. I am grateful to them and everyone else who had a hand in the rate-setting process.
The new rate applies to all new proposals submitted from the Lawrence campus with start dates on or after July 1, 2007. In instances where a proposal was submitted under the old rate and awarded after July 1, 2007, KUCR will work with agencies to increase funding for F&A, if possible. If funding is restricted, KUCR will use the old rate to alleviate negative impacts to direct cost budgets.
Again, join me in thanking the working group. At the same time, you should all feel good about the research you do and the recognition by DHHS that a higher F&A rate for KU is warranted based on the strong proposal we submitted. Jim Roberts
Vice Provost for Research
