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FACILITIES AND ADMINISTRATIVE (or F&A), also known as Indirect Costs, are expenses borne by the institution as a whole to support the infrastructure necessary to conduct research. These expenses are partially reimbursed to the university as part of every grant. They enable FAU’s research enterprise. Who sets the F&A rate and how? Facilities & Administrative rates are negotiated with the federal government. The facilities portion is a complicated calculation that factors in how campus research space is utilized including the number of faculty, staff, and students conducting federally sponsored research, as well as the percentage of time each one works in their space, and the actual research expenditures. The Administrative portion considers costs related to operating the entire university. This part of the rate is capped at 26%.