SECTION F OF A-21
By now you may be getting thoroughly confused about the categories for Facilities and Administration (F&A) costs.
In general, F&A costs are very broad categories and encompass a myriad of sub-areas or groupings. "Facilities" includes depreciation and use allowances, interest on debt connected with certain buildings, equipment and capital improvements, operation and maintenance (O&M) expenses, and library expenses. On the other hand, "Administration" includes institutional administration and general; departmental administration, sponsored projects administration, student administration and services, and if that is not enough, "all other types of expenditures not listed specifically under one of the subcategories of Facilities." With a catch-all phrase like that, it is no wonder there are misunderstandings, so lets look more at these areas.
Depreciation and use allowances:
This area basically includes some part of an institutions buildings, capital
improvements to land and buildings, and equipment - all of which must be
computed in accordance with Section J.12. These expenses will be tracked and
allocated at the institutional level.
Interest:
Interest on Debt associated with certain buildings, equipment and
capital improvements which are identified in Section J.22.e and f have costs
allocated in the same manner ad depreciation and use allowances on the
buildings.
Operation and Maintenance (O&M) Expenses:
These are expenses that have been incurred for the operation, maintenance, preservation and protection of
the institutions buildings. It includes such things as janitorial and
utility services, repairs, furniture and equipment, care of grounds, etc.
General Administration and General Expenses:
These are expenses incurred for the operation of the general executive and
administrative offices. This includes the salaries and fringe benefit costs and
normal operating expenses associated with the president's or chancellor's
offices, or the HR office among others. Where alternatives provided for in
Section E.2.d don't exist, then group these costs according to
major functions of the institution to which they render service.
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