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Pt. 200, App. 111
<br />other award covered by 31 U.S.C. 1352. Each
<br />tier must also disclose any lobbying with
<br />non -Federal funds that takes place in con-
<br />nection with obtaining any Federal award.
<br />Such disclosures are forwarded from tier to
<br />tier up to the non -Federal award.
<br />(K) See §200.322 Procurement of recovered
<br />materials.
<br />APPENDIX III TO PART 200—INDIRECT
<br />(F&A) COSTS IDENTIFICATION AND
<br />ASSIGNMENT, AND RATE DETERMINA-
<br />TION FOR INSTITUTIONS OF HIGHER
<br />EDUCATION (IHES)
<br />A. GENERAL
<br />This appendix provides criteria for identi-
<br />fying and computing indirect (or indirect
<br />(F&A)) rates at IHEs (institutions). Indirect
<br />(F&A) costs are those that are incurred for
<br />common or joint objectives and therefore
<br />cannot be identified readily and specifically
<br />with a particular sponsored project, an in-
<br />structional activity, or any other institu-
<br />tional activity. See subsection B.1, Defini-
<br />tion of Facilities and Administration, for a
<br />discussion of the components of indirect
<br />(F&A) costs.
<br />1. Major Functions of an Institution
<br />Refers to instruction, organized research,
<br />other sponsored activities and other institu-
<br />tional activities as defined in this section:
<br />a. Instruction means the teaching and
<br />training activities of an institution. Except
<br />for research training as provided in sub-
<br />section b, this term includes all teaching and
<br />training activities, whether they are offered
<br />for credits toward a degree or certificate or
<br />on a non-credit basis, and whether they are
<br />offered through regular academic depart-
<br />ments or separate divisions, such as a sum-
<br />mer school division or an extension division.
<br />Also considered part of this major function
<br />are departmental research, and, where
<br />agreed to, university research.
<br />(1) Sponsored instruction and training means
<br />specific instructional or training activity es-
<br />tablished by grant, contract, or cooperative
<br />agreement. For purposes of the cost prin-
<br />ciples, this activity may be considered a
<br />major function even though an institution's
<br />accounting treatment may include it in the
<br />instruction function.
<br />(2) Departmental research means research,
<br />development and scholarly activities that
<br />are not organized research and, con-
<br />sequently, are not separately budgeted and
<br />accounted for. Departmental research, for
<br />purposes of this document, is not considered
<br />as a major function, but as a part of the in-
<br />struction function of the institution.
<br />b. Organized research means all research
<br />and development activities of an institution
<br />that are separately budgeted and accounted
<br />for. It includes:
<br />2 CFR Ch. 11 (1-1-14 Edition)
<br />(1) Sponsored research means all research
<br />and development activities that are spon-
<br />sored by Federal and non -Federal agencies
<br />and organizations. This term includes activi-
<br />ties involving the training of individuals in
<br />research techniques (commonly called re-
<br />search training) where such activities utilize
<br />the same facilities as other research and de-
<br />velopment activities and where such activi-
<br />ties are not included in the instruction func-
<br />tion.
<br />(2) University research means all research
<br />and development activities that are sepa-
<br />rately budgeted and accounted for by the in-
<br />stitution under an internal application of in-
<br />stitutional funds. University research, for
<br />purposes of this document, must be com-
<br />bined with sponsored research under the
<br />function of organized research.
<br />c. Other sponsored activities means programs
<br />and projects financed by Federal and non -
<br />Federal agencies and organizations which in-
<br />volve the performance of work other than in-
<br />struction and organized research. Examples
<br />of such programs and projects are health
<br />service projects and community service pro-
<br />grams. However, when any of these activities
<br />are undertaken by the institution without
<br />outside support, they may be classified as
<br />other institutional activities.
<br />d. Other institutional activities means all ac-
<br />tivities of an institution except for instruc-
<br />tion, departmental research, organized re-
<br />search, and other sponsored activities, as de-
<br />fined in this section; indirect (F&A) cost ac-
<br />tivities identified in this Appendix para-
<br />graph B, Identification and assignment of in-
<br />direct (F&A) costs; and specialized services
<br />facilities described in §200.468 Specialized
<br />service facilities of this Part.
<br />Examples of other institutional activities
<br />include operation of residence halls, dining
<br />halls, hospitals and clinics, student unions,
<br />intercollegiate athletics, bookstores, faculty
<br />housing, student apartments, guest houses,
<br />chapels, theaters, public museums, and other
<br />similar auxiliary enterprises. This definition
<br />also includes any other categories of activi-
<br />ties, costs of which are "unallowable" to
<br />Federal awards, unless otherwise indicated
<br />in an award.
<br />2. Criteria for Distribution
<br />a. Base period. A base period for distribu-
<br />tion of indirect (F&A) costs is the period
<br />during which the costs are incurred. The
<br />base period normally should coincide with
<br />the fiscal year established by the institution,
<br />but in any event the base period should be so
<br />selected as to avoid inequities in the dis-
<br />tribution of costs.
<br />b. Need for cost groupings. The overall ob-
<br />jective of the indirect (F&A) cost allocation
<br />process is to distribute the indirect (F&A)
<br />costs described in Section B, Identification
<br />and assignment of indirect (F&A) costs, to
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