Modified Total Costs on Federally Funded Projects

Facilities and Administrative Costs (F&A Costs) are calculated against Modified Total Direct Costs (MTDC). The MTDC base includes salaries and wages, fringe benefits, materials, supplies, services, travel, and the first $25,000 of each subaward. Different rates are used for different types of projects.

Specifically excluded from the MTDC F&A base are:

  • equipment purchases, capital expenditures
  • fabricated and constructed equipment
  • charges from an approved campus computing facility
  • patient care costs (hospital patients only – both in-patient and out-patient costs)
  • tuition and fees for University of Chicago students
  • rental costs of off-site facilities
  • scholarships and fellowships
  • Physical Sciences Division Central Shop charges

The first $25,000 of each subaward is subject to indirect costs. Any amount above $25,000 is exempt. If there are multiple subawards to a single institution under a University grant or contract, the University will asses F&A on the first $25,000 only once, regardless of the number of subawards we may issue to that institution.

Equipment Capitalization Threshold

The University’s equipment capitalization threshold is $5,000. See Policy No. 1004.1: Capitalization Policy: Land, Buildings, Equipment, and Books