Facilities & Administrative (F&A) costs, also known as indirect costs or institutional overhead, are expenses that support the overall infrastructure and administration of research projects but cannot be directly attributed to any specific project. 

They include shared services such as:

• Libraries
• Physical plant operation and maintenance
• Utility costs
• Departmental and sponsored project administrative expenses
• Depreciation or use allowance for buildings and equipment

F&A costs are a reimbursement to the institution for costs already incurred in supporting research activities. However, these reimbursements do not cover the entire cost of conducting research.

The University of Iowa periodically negotiates standard F&A rates for federal grants and contracts with the Department of Health & Human Services.  These rate calculations are based on eight cost components related to research activities. The current F&A rate agreement and information on rate calculation are available on the university’s website.

The University of Iowa aims to reimburse institutional business units for the actual research-related F&A costs incurred. 

F&A recoveries are utilized in the following ways:

• General Education Fund (GEF):  Most of indirect cost recoveries are added to the General Education Fund to offset the cost of general and sponsored programs administration.  Although treated as revenue for accounting purposes, these funds are actually cost reimbursement for these activities.  Each college is provided F&A recoveries in proportion to the amount generated by its own grants and contracts as part of its annual GEF allocation. Colleges have discretion in the use of the funds.  Contact the collegiate research administrator or associate dean for research for further information. 
• University Hospital: University of Iowa Health Care incurs 4.78% of total research related F&A costs and correspondingly receives 4.78% of F&A recoveries.
• Non-General Education Fund Recoveries: A percentage of all F&A cost recoveries are returned directly to campus units responsible for the corresponding costs or are distributed to improve research facilities.
• Research Infrastructure: Most expenses within the Research Infrastructure category are in the form of debt service for new research facilities.