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New Fringe Benefit and F&A (Indirect) Rate Agreement

Published on December 15, 2022 in Announcements · Last updated 1 year ago


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Children's Hospital of Philadelphia completed negotiations with the Department of Health and Human Services on a one-year Facilities and Administrative (F&A or indirect) rate agreement.

The agreement, dated July 01, 2022, establishes the rates found on Facilities and Administrative Cost Rate Chart. These rates will apply through the end of FY2023 and will continue to be used after that date until a new rate agreement is established.

Implementation of Facilities and Administrative (Indirect) Rates

  • New proposals: Investigators should begin using the new rates in proposals immediately
  • New or competing continuation proposals submitted but not yet funded: The Sponsored Projects Office will work with sponsors to obtain the new F&A rate whenever possible. However, if we cannot obtain additional funds, direct costs will be protected and will not be reduced to cover the increase in F&A rate.
  • Currently active projects: These projects will continue to be charged their current rate, as proposed and awarded, until the next competitive segment or other natural break point.

View the Fringe Benefit Rates Chart for specific rates effective on all funding (external and internal) July 1, 2023.

Treatment of Paid Absences

Vacation, holiday, sick leave, and other paid absences are included in salaries and wages and are claimed on grants, contracts, and other agreements as part of the normal cost for salaries and wages. Separate claims are not made for the cost of these paid absences. Fringe Benefits include FICA, Disability Insurance, Life Insurance, Tuition Remission, Pension Costs, Workers’ Compensation, Unemployment Insurance, and Health Insurance.