Houston voices

Houston expert shares advice for navigating confusing costs for researchers

Researchers focused on finding breakthrough technologies also have to deal with some financial red tape — but this UH expert shares why it shouldn't be so daunting. Graphic by Miguel Tovar/University of Houston

Facilities and Administrative costs (F&A), also known as Indirect Costs or IDC, are at the very least misunderstood by researchers. At their worst, they smack of "Big Brother." But F&A costs truly are transparent and nothing to fear (or despise!)

Keeping the lights on

F&A are costs that cannot be uniquely associated with a particular project, but which are nonetheless incurred by the university due to the project.

"If a Principal Investigator (PI) is using on-campus lab space, there is no easy way to determine what the electricity costs or maintenance costs are for the PI's work in the lab on any particular sponsored project," states University of Berkeley's website. "The same problem exists when a piece of equipment is shared by a number of PIs or projects; there is no way to determine the cost attributable to each PI or project."

Unfunded costs

So, we know it isn't easy to calculate how much utilities or janitorial staff cost a university during a sponsored project. But the question persists: do universities "make money" on sponsored research projects?

"No," says Cris Milligan, assistant vice president for research administration at the University of Houston. "Sponsors do not cover the full costs of conducting the research that they support. The unfunded costs are subsidized through university, college, department and faculty contributions."

Where has all the money gone?

F&A costs are a relatively small percentage of the actual costs that a university spends on any given project: for instance, operations and maintenance typically includes the day-to-day activities necessary for the building and its systems and equipment to perform their intended function.

Other monies go toward departmental, sponsored program and general administration costs. Rent needs to be paid on buildings where the research takes place, equipment must be purchased and libraries are maintained.

What goes in, must come out!

Grants can be funded by federal agencies such as the National Institutes of Health, National Science Foundation and the Department of Energy. Other support from companies, foundations and state and local agencies can be pursued by development officers within the colleges.

Recovered F&A costs totaled over $22 million at the University of Houston in 2019. Salaries and benefits, maintenance and operations, travel and business expenses, scholarships and fellowships and lastly capital outlay and contracting of services all take up their fair share of the pie.

"Of course, to be successful in research, PIs need a whole ecosystem of supporting teams, from grant administrators to student services, operations and maintenance to IT. That is what indirect spend is: it relates to every purchase not directly related to the performance of the sponsored research," says Milligan.

Determining Rates

The aim of most every university is full recovery of costs associated with sponsored projects. For instance, the University of Michigan Office of Research states, "Periodically, the Department of Health and Human Services (acting on behalf of the federal government) and the University negotiate an agreement setting forth indirect cost rates for three types of sponsored activities: organized research, instruction and other sponsored activities."

The agreement specifies the rates at which the University can recover its indirect costs associated with projects sponsored by all agencies of the federal government.

Non-federal sponsors (i.e., private sponsors, whether industry or non-profit) are not bound by the terms of OMB Uniform Guidance. These monitored costs are not necessarily guided by the principle of full cost recovery for universities. Your friendly development officer will come in handy when applying for this kind of support; just be clear that the percentage of F&A may be determined on a slightly different scale.

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This article originally appeared on the University of Houston's The Big Idea. Sarah Hill, the author of this piece, is the communications manager for the UH Division of Research.

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Building Houston

 
 

Comcast’s Internet Essentials program announced the a donation of a $30,000 financial grant and 1,000 laptops to SERJobs. Photo courtesy of Comcast

A Houston organization focused on helping low-income communities by providing access to education, training, and employment has received a new donation.

Comcast’s Internet Essentials program announced the a donation of a $30,000 financial grant and 1,000 laptops to SERJobs. The gift is part of a new partnership with SERJobs that's aimed at educating and equipping adults with technical skills, including training on Microsoft Office and professional development.

“SERJobs is excited to celebrate 10 years of Comcast's Internet Essentials program,” says Sheroo Mukhtiar, CEO, SERJobs, in a news release. “The Workforce Development Rally highlights the importance of digital literacy in our increasingly virtual world—especially as technology and the needs of our economy evolve. We are grateful to Comcast for their ongoing partnership and support of SERJobs’ and our members.”

For 10 years Comcast's Internet Essentials program has connected more than 10 million people to the Internet at home — most for the first time. This particular donation is a part of Project UP, Comcast’s comprehensive initiative to advance digital equity.

“Ten years is a remarkable milestone, signifying an extraordinary amount of work and collaboration with our incredible community partners across Houston,” says Toni Beck, vice president of external affairs at Comcast Houston, in the release.

“Together, we have connected hundreds of thousands of people to the power of the Internet at home, and to the endless opportunity, education, growth, and discovery it provides," she continues. "Our work is not done, and we are excited to partner with SERJobs to ensure the next generation of leaders in Houston are equipped with the technical training they need to succeed in an increasingly digital world.”

It's not the first time the tech company has supported Houston's low-income families. This summer, Comcast's Internet Essentials program and Region 4 Education Service Center partnered with the Texas Education Agency's Connect Texas Program to make sure Texas students have access to internet services.

Additionally, Comcast set up an internet voucher program with the City of Houston last December, and earlier this year, the company announced 50 Houston-area community centers will have free Wi-Fi connections for three years. Earlier this year, the company also dedicated $1 million to small businesses struggling due to the pandemic that are owned by Black, Indigenous, and People of Color.

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