Note

Tuition Grant Program Fringe Rate

Fringe Benefit rates do not include the Tuition Grant Program fringe rate. The Tuition Grant Program (TGP) fringe rate is assessed on regular benefits-eligible salaries charged to all non-government funded PTAs including sponsored projects, operating budgets and auxiliary PTAs. The TGP rate is applied to regular benefits eligible employee salaries paid by non-government sponsors in addition to the fringe benefit rate. The TGP rate contributes to the University's fund for continuation of the Tuition Grant Program for children of faculty and staff. For further information on the TGP rate, please contact the University Budget Office.

How Fringe Rates are Calculated

Stanford uses multiple fringe benefits rates developed under the requirements of Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions (A-21). Since September 1, 2002, Stanford has used four different rates for different categories of employees, as described below.

Each rate is calculated by the development of a pool of fringe benefits costs (the numerator) and of a salary and wage base (denominator). The pool consists of costs for the benefits provided to a particular category of employees. When the pool is divided by the base applicable to that category of employees, a rate results; this rate represents the percentage that must be added to employees’ salary and wage dollars.

The categories of employees having separate fringe benefits rates are as follows: 1. Regular Benefits-Eligible Employees; 2. Post-Doctoral Affiliates; 3. Contingent (casual or temporary) Employees; and 4. Graduate Research and Teaching Assistants. (Other student salaries have a benefits rate of zero.)

1. Regular benefits-eligible employees are those faculty and staff who hold an appointment of at least six months (four months for bargaining unit employees) for at least 50% time and thus are eligible for Stanford’s retirement and health and welfare benefits programs.
2. Post-doctoral affiliates are advanced nonmatriculating students employed by Stanford to perform services related primarily to Stanford research projects.
3. Contingent employees are those whose appointments are too brief (i.e., less than six months, or four months for bargaining unit employees) or too few hours (i.e., less than 50% time) to make them eligible for regular benefits.
4. Graduate research and teaching assistants (RAs and TAs) are students whose RA or TA appointments are at least 25% (for the full University contribution to the cost of student health insurance) or 10% (for a half contribution by the University).

Other registered Stanford undergraduate and graduate students have no benefits charges applied against their wages; this is because these students receive no fringe benefits. Students who are employed by the University during a quarter in which they are not registered (including summer quarter) must be classified as contingent employees until they are registered again.

The fringe benefits pool comprises the following categories of cost:

RETIREMENT PROGRAMS, including social security, contributory plans, early retirement incentive programs, etc.

INSURANCE PROGRAMS, including health, dental, group life, disability, workers’ compensation, unemployment compensation, post-employment medical, travel insurance, and other.

MISCELLANEOUS PROGRAMS, including staff development, severance pay, sabbaticals, benefits counseling, etc.

TUITION GRANT PROGRAMS (TGP), for children of eligible faculty and staff, was included in the negotiated fringe benefits pool through Fiscal Year 1999, but has since been distributed by means of a separate charge against non-government salaries only.

The salary bases for fringe benefits consist of all salaries and wages paid to each category of employee. Sabbatical and long-term disability payments, which are themselves fringe benefits, are not included in any salary base.

Stanford’s fringe benefits rates are established under A-21, Section G.5., “Negotiated fixed rates and carry-forward provisions,” which provide for the negotiation of fixed rates in advance for a fiscal year. Any over- or under-recovery for that year is included as an adjustment to the appropriate fringe benefits rate for a subsequent year.

Tuition Grant Program

The University applies the TGP  rate to regular benefits-eligible salaries to support the costs of the Tuition Grant Program (Admin Guide Memo 27.4, "Tuition Privileges").

Effective September 1, 1999, the Tuition Grant Program (TGP) fringe rate is assessed on regular benefits-eligible salaries charged to all non-government funded PTA’s including sponsored projects, operating budgets and auxiliary PTAs.

Regular benefits-eligible salaries charged to government-funded PTA’s, academic service centers and sponsored project cost sharing PTA’s are exempt from the TGP charge.

The TGP charge is subject to facilities and administrative costs (F&A) and infrastructure charges. The TGP charge appears in expenditure type 51770 FRINGE BENEFITS TGP.

If you have any questions or need more information about the application of the TGP Fringe Benefit Rate, please contact Andrew Harker, Provost Office, at extension 5-0666 or Jesse Charlton, Research Administration Policy and Compliance, at extension 3-9102.

Rate Agreements

FY2016 Provisional fringe benefits rate agreement negotiated with ONR:  Agreement 9/12/2014

FY2015  final fringe benefits rate agreement negotiated with ONR: Agreement 9/12/14

FY2014 final fringe benefits rate agreement negotiated with ONR: Agreement

FY2013 final fringe benefits rate agreement negotiated with ONR Agreement

FY2011 and FY2012 fringe benefits rate agreement negotiated with ONR  Agreement

Letter 03/09/2010 - Approved through 03/31/2011 Approval Document

Student Stipends

Graduate student fellowship stipends charged to the expenditure types noted below and paid by internal sources of funds are assessed GSS to help subsidize their health care benefit.  The subsidy appears on expenditure statements in expenditure type 57640 GS Health Insurance Recovery. The financial system automatically applies the surcharge to eligible transactions in the form of a rate. C

Both the surcharge and RA/TA fringe subsidize eligible graduate student Cardinal Care health insurance. The Provost’s Office reviews and adjusts the GSS rate as necessary each fiscal year.  

For more information about this benefit, see “Frequently asked questions on graduate student subsidy” found at the “Cardinal Care” website.

Expenditure Types Subject to GSS

In general, stipend payments (charged to the expenditure types listed above) from Stanford operating budget PTAs, or from School or Department PTAs, will be assessed the GSS rate.   

All fellowships awarded by external sources, where the awards, projects and tasks are established by the Office of Sponsored Research are EXCLUDED from the application of this surcharge (award range PAAAA-VZZZZ).  In addition, no GSS is applied on cost sharing PTAs, miscellaneous receivables, capital projects, service centers or auxiliaries.

Fellowship stipends paid to Postdoctoral Scholars (expenditure type 57840) and to non-matriculated students including Visiting Researchers (expenditure type 57860) are NOT charged the GSS rate, as neither of these groups receives a Cardinal Care subsidy.

Institutional Allowances

Some externally-funded fellowships, such as NIH Training Grants or NSF Fellowships, provide an institutional allowance for the benefit of the fellow.  This allowance is exempt from GSS. When the Office of Sponsored Research (OSR) transfers this allowance to a departmental PTA, the PTA is exempt from the GSS surcharge.  Expenditures subject/not subject to GSS should not be commingled in the same PTA.

Implementing Infrastructure

Implementing the Revised Infrastructure Charge (ISC) Policy
More information about this policy can be found in the Stanford Administrative Guide 8.3.1

The Board of Trustees of Stanford University approved a revised infrastructure policy in October 2004.The revised policy, effective September 1, 2005, increases the infrastructure charge from 6% to 8% for both new and existing funds. For designated funds, the infrastructure charge will be applied at the time funds are received from all external revenue sources. For restricted funds (expendable gift funds, endowment income funds and sponsored project funds that carry an F&A rate of 0%), the infrastructure charge will be applied at the time funds are expended or transferred.

Gifts for building projects are waived from the infrastructure charges. Gifts of donated capital equipment are waived from infrastructure. However, restricted funds used to purchase capital equipment will be assessed ISC.

The infrastructure charge collected from non formula schools will be credited 75% to a central university PFOO (controlled by the budget office) and 25% to a central PFOO owned by the budget unit involved in the transaction. The infrastructure charge collected from formula schools and auxiliaries will be credited directly to a central PFOO belonging to the formula school or auxiliary.

Any exceptions to the policy require approval of both the Provost and the CFO and are to occur rarely, if at all.

This guide provides additional detail implementing Administrative Guide Memo 8.3.1 Infrastructure Charges.

Infrastructure Charge

Awards are subject to the revised infrastructure policy as follows (see additional guidelines concerning sponsored projects below):

• Designated funds are assessed the infrastructure charge on revenue in General Ledger codes 43xxx, 44xxx and 46xxx. The charge will appear on the fund statement only in General Ledger codes 48990 or 48992.
   
• Expendable gift and endowment income funds are assessed the infrastructure charge on expenditures and fund transfers including transfers to operating budgets and designated funds. The charge on expenditures will appear in expenditure types 58915 or 58935 on the expenditure statement. The charge on fund transfers will appear in General Ledger codes 49710 or 49720 on the fund statement only.
  
  Expendable gift and endowment income funds marked "Donor Exempt" prior to September 1, 2005 are waived from infrastructure. All other expendable gift and endowment income funds are subject to the revised infrastructure policy.
   
• Non-government and foreign government sponsored project awards are assessed the infrastructure charge on expenditures. The charge on expenditures will appear in expenditure types 58915 or 58935.
   
• Operating budgets, budget pools, service centers, auxiliaries, miscellaneous receivables, reserves, pending funds, U.S. government sponsored projects, University Research, plant, student loans, agency and living trust funds/awards and the SLAC National Accelerator Laboratory are waived from infrastructure by the revised policy.
   
• The utility charge is discontinued.

The following schedules define the revised infrastructure process in detail:

• The schedule APPLICATION OF REVISED INFRASTRUCTURE (ISC) POLICY BY AWARD TYPE AND PURPOSE defines the categories of awards subject to the revised policy and the infrastructure charge they are assessed.
   
• The schedule APPLICATION OF REVISED INFRASTRUCTURE POLICY TO FUND TRANSFERS defines the types of fund transfers that are assessed the infrastructure charge. (file updated 9/26/2008)
   
• The schedule FUND TRANSFERS AND INFRASTRUCTURE defines the fund transfer General Ledger codes subject to the infrastructure charge.
   
• Example – Fund Transfer and Infrastructure – An example of a fund transfer from a gift to an operating budget.
   
• The schedule BURDEN EXPENDITURE TYPE MAPPING SCHEDULE defines the expenditure types subject to the infrastructure charge. The new ISC charge is applied to most expenditure types.
   
• The schedule INFRASTRUCTURE CHARGE EXPENDITURE TYPES/GENERAL LEDGER CODES defines the expenditure types and general ledger codes where the infrastructure assessment will appear.

Infrastructure Exemptions and Waivers

Any exceptions to the revised ISC Policy require approval of both the Provost and CFO and are to occur rarely, if at all. If the source of funds, typically a donor or sponsor, will not pay the infrastructure charge, the department or office may request to pay the charge themselves by applying to the Budget Office for permission to use an alternate PTA (project/task/award). Departments must use the "Request for Infrastructure Exemption" form. The alternate source of funds must be able to support an expense of this nature. Designated, endowment income or expendable funds may be used. Sponsored projects may not be used. See additional guidelines concerning sponsored projects and exemptions below. If the exemption is not granted by the Provost and the Chief Financial Officer, the funds must be refused.

Any questions about requesting a waiver to the revised ISC Policy should be directed to Dana Shelley in the Budget Office at ext 5-1256.

A waiver of F&A (indirect costs) granted by the Dean of Research does not waive infrastructure.

Infrastructure and Sponsored Projects

The revised Infrastructure Charge Policy applies to sponsored project awards assessed an F&A rate of 0%. Awards with F& A rates between 0% and 8% are not charged infrastructure but instead are charged their negotiated F&A rates.

However, all sponsored projects awards with award start dates prior to 9/01/05 and awards made in response to previously-submitted sponsored projects proposals will continue to be subject to the prior ISC policy until the end of their competitive segment. At the time these projects are renewed, funding must be requested using the revised ISC guidelines.

Sponsored project awards are subject to the revised Infrastructure Charge Policy as follows:

• The infrastructure charge is waived on all U.S. government - funded sponsored project awards. This includes awards directly funded by a federal, state or local governmental agency and awards that are funded on a “flow-through” basis using government monies.

• The infrastructure charge is exempted (e.g., an alternate PTA is provided by the PI/department to pay the ISC charge) on all non-government sponsored project awards where the sponsor has a written policy stating that it does not pay indirect costs.

• Effective 9/1/05, if a sponsor/program is not waived or exempted under the rules listed above, the PI/administering department must include the infrastructure charge in their proposal/budget request to the sponsor. Institutional officials are responsible for reviewing proposals to make sure that the charge has been included, prior to endorsing the proposal on behalf of Stanford, or that an approved “exemption” (see below) is on file.

• If a sponsor/program is not exempted as outlined above, the department may request to pay the infrastructure via an alternate PTA by submitting a "Request for Infrastructure Exemption" form to the Provost Office. Exemptions must be approved in advance of submission of a proposal.

• Unobligated funds remaining at the expiration of a fixed price sponsored project that are transferred to a departmental PTA on or after September 1, 1999, are not subject to the infrastructure charge provided the funds were assessed an F&A rate of 8% or greater. These funds are transferred to a departmental PTA, less the facilities and administrative costs (formerly referred to as indirect costs) that would have been assessed on additional project expenditures.

• Institutional allowances associated with fellowships are exempt from infrastructure. Best practices recommend the institutional allowance should be spent on the sponsored award. However, the schools and departments may transfer the allowance to an existing PTA where the expenditure will not be assessed infrastructure. Please contact your OSR representative for additional guidance.

For questions about infrastructure charge policy, exemptions or waivers, contact Dana Shelley. For questions related to sponsored projects please contact Jesse Charlton. For all other inquiries, please call your Fund Accounting representative or the Manager of Fund Accounting in the Controller's Office.

SIP

The Stanford Infrastructure Program (SIP) consists of projects and programs proposed and developed for the betterment and general support of the University's academic community and its physical plant. The infrastructure system directly supports the academic missions of teaching and research and the overall vitality of the institution. This infrastructure will be developed as necessary to improve public safety and service and to promote conservation in land use and resources.

For more information on SIP go to Administrative Guide Memo 8.3.1