Definition: Facilities and administrative costs are those costs that are incurred for common objectives of UNC and therefore cannot be readily identified with a particular sponsored project. Examples of F & A costs include departmental administration.

The Office of State Budget and Management requires that UNC cover its costs of operations by claiming F & A costs on proposal budgets for sponsored awards.

A full or partial waiver of F & A costs can only be made when either of the two following circumstances exists and can be demonstrated in writing:

a. The sponsor will not reimburse F & A costs or restricts reimbursement to a rate less than the applicable UNC   F & A cost rate; or,

b. Extraordinary circumstances exist which, if F & A costs are included in a budget, may jeopardize the State's best interest.

Waiver of F & A costs can only be granted in writing by the Vice President for Research.