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Joint Associations Group on F&A Costs

National organizations,1 including APLU, representing America’s academic, medical, and independent research institutions, along with other relevant experts, have come together to form the Joint Associations Group (JAG) on Indirect Costs and spur the development of a more efficient and transparent model for how the federal government reimburses universities and other research institutions for the costs associated with conducting research on behalf of the American people. The effort seeks to identify and reduce regulatory barriers, produce a simple and easily explained model, and increase transparency, all in service of a singular goal: to ensure that taxpayer dollars continue to be used effectively to advance research that benefits all Americans.

On July 11, the Joint Associations Group (JAG) on Indirect Costs released its recommendation to Congress and the executive branch for a new model to replace the current facilities and administrative (F&A) cost structure that the federal government uses to fund the indirect expenses that universities and other research organizations incur when conducting federally funded research on behalf of the American people.

Below are resources on the recommended model:

Indirect costs are the essential institutional costs associated with conducting sponsored research. Examples include building and facility maintenance; supporting the preparation, submission, and financial management of grant proposals and awards; funding for human resources, payroll, acquisition, and essential utilities and space upkeep; secure data storage and high-speed data processing; complying with multiple federal research security, human subject protections, environmental health, and safety requirements; and much more. Indirect costs do not include other institutional activities unrelated to research, such as education, training, athletics, and more.

[Learn more about research and facilities administration costs]

Despite the historical success of the current facilities and administrative (F&A) cost reimbursement model, it has limitations that unnecessarily complicate the indirect costs structure, lead to widespread confusion and misunderstanding, and increase administrative burdens.

The JAG has engaged subject-matter experts with deep knowledge of direct and indirect costs, the current F&A cost structure, university finance, grant administration, regulatory compliance, research project leadership, and other related matters with the goal of proposing a new indirect costs model to federal officials, developed with full engagement of the broad research community.

Town Halls
On June 12 and 17, while the final JAG model was still in development and being informed by community feedback, COGR hosted webinars on the group’s behalf. The June 12 webinar presented the recommendations from the subject matter expert team and highlight mechanisms for additional stakeholder input and questions. The June 17 Town Hall presented the model and solicited feedback from the community.

  1. Association of American Universities (AAU), Association of Public and Land-grant Universities (APLU), Association of American Medical Colleges (AAMC), American Council on Education (ACE), Association of Independent Research Institutes (AIRI), Council on Governmental Relations (COGR), National Association of Independent Colleges and Universities (NAICU), American Association of State Colleges and Universities (AASCU), Science Philanthropy Alliance (SPA), and the National Association of College and University Business Officers (NACUBO).