Armstrong Atlantic State University
Policy For Facilities And Administrative (Indirect) Cost Recovery
A-21, "Cost Principles for Educational Institutions," was revised by OMB as
of May 8, 1996. One of the revisions changed the term indirect costs to Facilities and
Administrative Costs (F & A Costs).
Armstrong Atlantic State University policy is to seek full reimbursement of F & A
costs in connection with all externally supported programs. It is recognized, however,
that some donors and grantors have fixed policies limiting the reimbursement of F & A
costs. The University will consider sponsor-imposed conditions regarding the limitation or
waiver of F & A costs if required by federal law or regulation, or if the sponsoring
agency (foreign, domestic, private corporation, foundation, or other business entity)
publishes a rate or policy that is consistently applied to all grants and contracts with
educational institutions. In addition, it must be demonstrated that the project is of
significant importance to the university to warrant subsidizing the F & A costs from
other programs. Gifts and grants for scholarships and fellowships are not subject to this
policy. Requests for exceptions must be submitted to the Vice President and Dean of
Faculty and the Vice President for Business and Finance for approval.
Approved Council of Deans 9/15/98
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