The University of Arizona Federally Negotiated Rate Agreement defines Off-Campus, and its application, as follows:
The off-campus rate is applicable to those projects that are conducted in facilities not owned, leased or operated by the university. If the project is conducted in leased space and lease costs are directly charged to the project, then the off-campus rate must be used. A project is considered off-campus if more than 50% of its salaries and wages are incurred at an off-campus facility. If a project is determined to be off-campus, it shall be considered wholly off-campus. Separate on and off-campus rates will not be used for a single project.
When to Use the Off-Campus Rate
The off-campus rate is for projects conducted in facilities that the university does not own, lease, or operate:
- Leased Space: If your project is taking place in a leased facility and the lease costs are charged directly to the project, you should use the off-campus rate.
- Salaries and Wages: If more than 50% of the project’s salaries and wages are incurred at an off-campus facility, the project is considered off-campus. Once determined, the entire project is treated as off-campus. There's no mixing of on-campus and off-campus rates.
When to Use the On-Campus Rate
The on-campus rate applies to:
- University-Owned Facilities: Activities that occur in facilities owned by the university.
- Certain Leased Spaces: Some leased spaces are considered on-campus if the university assumes the lease costs centrally. In these cases, the on-campus rate applies.
Situations Where Off-Campus Rate Does Not Apply
- Work From Home: If a project is carried out in a facility not owned, leased or operated by the university for convenience or due to temporary circumstances (like a pandemic), the on-campus rate must be used. This is because the university continues to incur facilities costs because these spaces are not considered off-campus per the federal definition. Facilities costs are still being incurred by the university which includes office space, infrastructure, and depreciation.
- Travel or Field Work: Projects involving only travel or fieldwork do not qualify for the off-campus rate.
Off-Campus Clarifications
Avoid Misuse: Do not label a project as off-campus to avoid proper recovery of applicable F&A costs. Simply working off-campus for convenience, attending conferences, or short-term travel does not justify the off-campus rate.
Confusion with University Locations: If you’re unsure whether to apply the on-campus or off-campus rate, contact your Sponsored Projects Services (SPS) or Financial Services Rate Studies team for guidance.
Space: If you are unsure about space classification, contact your college business and finance administration team. The Rate Studies team may be consulted for further evaluation as needed.
Negotiating Rates: Principal Investigators cannot negotiate reductions or waivers of indirect costs with sponsors. Discussions about F&A rates should be managed by SPS Preaward.
Please reach out to the appropriate contacts if you need further clarification:
- Rate Studies: FNSV-RateStudies@arizona.edu
- Sponsored Projects Services: sponsor@arizona.edu