This is a new policy that establishes the rate for facilities & administrative costs (“F&A Costs”) for sponsored research and the procedures involved to reduce and distribute the F&A Costs. The University prefers to obtain the full F&A Costs associated with every contract but understands that under certain circumstances there may be a reason to reduce same. This policy states University is to collect the full F&A Costs rate if possible and establishes procedures to reduce the F&A Costs. The Research and Sponsored Programs department (“RSP”) is established as the entity to negotiate F&A Costs. This policy establishes how the collected F&A Costs are distributed as among RSP, the principal investigator, department, and college. This policy is a compilation of procedures and memoranda that were previously disseminated by both the president’s office and RSP.