Effective Date: August 1, 2025
Issuing Authority: Provost
Policy Contact: Senior Vice Provost for Research, provost@mercer.edu, 478-301-2110
Purpose
The purpose of this policy statement is to set forth Mercer University’s policy and procedures in determining on-campus or off-campus Facilities & Administrative cost rate to use for a sponsored project proposal.
Scope
This policy applies to sponsored project proposals submitted by Mercer University employees.
Exclusions
Sponsored projects at the Mercer Engineering Research Center (MERC)
Definitions
As used in this policy, the following term(s) have the meaning specified below:
Leased Space: space in a building that Mercer University does not own, but which Mercer University occupies and pays a lease expense. When leased space is used to conduct a sponsored project, that project may be designated as either “on-campus” or “off-campus”, based on defined parameters. The existence of a lease does not, in and of itself, indicate off-campus designation.
Leased Space Off-Campus: space paid by a sponsored program or another entity and use of separate (non-University) services such as utilities, mail, telephone, network, and other support services. When a leased space is considered off-campus, a direct rent cost and support cost should be included in the proposal budgets and charged to benefiting sponsored projects.
Leased Space On-Campus: space paid by Mercer University and maintained with the use of University-provided support services such as utilities, mail, telephone, and network services.
Off-Campus Research: research conducted in space not owned by Mercer University AND not otherwise paid for by Mercer University from University funds. If a project is located in leased space and the lease is a direct charge to the project, then the project is off campus. When a leased space is off campus, a direct rent and support costs should be included in the proposal budgets and charged to benefiting sponsored projects.
For most federal sponsors, the “off-campus” negotiated F&A rate (26% MTDC, representing only administrative costs) applies to projects designated as off-campus. For many non-federal sponsors, the published non-federal off-campus F&A rate applies. Certain types of awards and/or sponsors stipulate specific F&A rates. In these cases, the off-campus designation is still appropriate but is not applicable to the F&A rate. For purposes of the F&A rate proposal, all direct expenditures on projects designated as off-campus are included in the same base.
On-Campus Research: research conducted in space owned, leased, and maintained by Mercer University and for which Mercer University is bearing the space costs from University funds.
Policy Statement
The on-campus vs. off-campus Facilities & Administrative (F&A) cost rate is determined on the basis of the majority of the project expenses. A project defined to be “on-campus” if 50% or more of the Mercer University activities are performed in facilities owned or rent is directly paid by Mercer University. In this case, the “on-campus” rate will apply to the entire project, including the first $50,000 of each subcontract. Projects may qualify for the “off-campus” rate if 50% or more of the project is conducted using non-university buildings and/or equipment. Tasks performed by consultants or sub-awardees should not be considered when determining if the project qualifies as on-campus or off-campus. When the off-campus rate is to be used, the proposal narrative and supporting documents should clearly demonstrate the fact that more than 50% of the project activities are to be conducted off campus, as defined in this policy statement.
When to Use the On-Campus Rate
- The on-campus rate applies to projects performed in space that the Mercer University
- The on-campus rate applies to projects performed in leased space paid by Mercer University and provided support services.
- Rent may not be charged to projects applying the on-campus rate.
When to Use the Off-Campus Rate
- The off-campus rate applies to projects performed in leased space if paid by a sponsored program and use of separate non-university support services. A direct rent and support costs should be included in the proposal budgets and charged to benefiting sponsored
- The off-campus rate applies to projects performed in space that the University does not
own and for which the University does not bear a lease cost from any University account
(sponsored or non-sponsored or school/department fund source).