Unit for Laboratory Animal Medicine
Treatment of Animal Costs


For an overview of changes as well as how to financially handle existing projects under the change of accounting, please refer to the attached Powerpoint presentation:
Impact of ULAM Overhead Recovery Changes

 

Sponsored Projects - Regardless of indirect cost rate (8%, 55.5%, etc.)

There is a significant change to how animal care costs are handled in the budget of your externally sponsored projects.  The animal overhead is now part of the standard negotiated Facility & Administrative (F&A) Rate.  This means you will no longer be using the Specialized Services Facility (SSF) recovery of 39.5% as direct costs.  Instead, indirects on animal care will be recovered at the project's overall indirect cost rate, similar to federal animal purchases.  This practice will also be extended to non-federal external projects that would normally be subject to a Quality Assurance Fee (QAF, 45%).

 

What will I see on my projects for animal costs?

Beginning July 1, 2010, animal purchases and housing will remain in the direct cost budget, while any previous SSF or QAF on ULAM charges will become no different than indirect costs. 

On projects that have an overall rate lower than the SSF (39.5%) or QAF (45%), investigators will see direct costs available to re-budget beginning July 1.   (For example, a grant that runs at 8% will only need 8% to cover the IDC related to animal purchase and care, compared to the 45% requested in the budget to cover QAF). 

We are in the process of working with campus on what the implementation will mean on active projects that have an overall indirect rate at higher than the current 39.5% SSF or 45% QAF budgeted.  We are committed that any plan of implementation will not require more funds from the investigator than what was originally negotiated.  (For example, if a federal project recovered 39.5% SSF on animal husbandry, we would be sure that no more than 39.5% F&A is applied to those charges, even though the new rate is 54.5%)

On federal projects specifically, it may take a few years to transition, but as your competitive projects are applied for and funded, you will have the ability to budget direct costs into other items.

 

What do I need to do?

  • On proposals to ALL external sponsors, there will be no more SSF or QAF to build into direct costs of budgets and no exclusions for animal costs.  For both Federal and Non-federal sponsors, purchase & husbandry, use the project's allowed indirect cost recovery. 
  • We recognize that we have many proposals already under consideration with external sponsors where SSF or QAF was treated as a direct cost.  If you are able to re-negotiate a budget with the sponsor under the new structure prior to accepting the award, we encourage you to do so.  However, if a sponsor will only award the originally proposed budget, we will roll the award treatment into the "active projects" category.
  • We will communicate separately how to handle externally-funded active projects and internally funded studies that will be affected on July 1.  We anticipate sharing how this will be handled financially by the end of April.   We appreciate your patience.

 

Definitions:

*Animal Care/ Per Diem Includes: All costs of care excluding the cost of purchasing the animals. This includes the daily per diem rate, animal treatment costs, and specialized services such as veterinary care, medical and surgical supplies, technical tests, and technical assistance.
**Animal Purchase Includes: Purchase price of the animal plus the cost of shipping. This total should then be increased by 6% to cover ULAM's processing fee.

 

Any specific questions may be directed to the Office of Research, Grant Review & Analysis Office  (763-4272).

Site Updated:  October 1, 2010