| Office of Sponsored Programs |
A. General Rules
1. Only primary volume cost collectors receive allocation of administrative expense. If any cost collectors are to be excluded from the allocation, an explanation, in writing, must be submitted for review and approval.
2. Travel (except within the administrative group), equipment, meetings/lunches and any unallowable costs may not be charged to the allocation account. Other operating costs, wherever applicable, should be direct charged.
3. If an individual's salary is to be charged to the allocation account, then such salary must be charged at 100%. Salaries may not be partially charged to the allocation account and partially to another cost collector unless the split of the person's time is functional; for example, partially a direct research or scientific function and partially an administrative or support function.
4. Each month the SAP system will perform the allocation at the point in the system prior to the calculation of employee benefits and F&A recovery. Each primary volume cost collector will receive a salary and/or operating cost charge based upon the Modified Total Direct Costs charged to the cost collector multiplied by the rates then in effect.
5. Each year laboratories will submit rate information for review by the Defense Contract Audit Agency and, when approved, rate changes (if necessary) will be made at the beginning of each fiscal year. In extraordinary circumstances rates may be revised at other times during the fiscal year
B. Allocation Method
1. Develop estimated MTDC base. The base is determined as follows:
Total laboratory volume
Less: Employee benefits
Vacation accrual
F&A recovery
G/L accounts not subject to F&A (designated "Not MTDC" in title of G/L account)
2. Determine annual charges to the allocation account in the following categories:
(a) Allocated Salaries & wages
(b) Allocated expense
3. Determine allocation rates as follows:
(a) Allocated Salaries & wages
Salaries and wages [B.2.(a) above] / Modified total direct cost base (B.1) = Salaries and wages allocation rate
(b) Allocated M&S
Operating expenses [B.2.(b)] / Modified total direct cost base (B.1.) = Allocated expenses allocation rate
4. Each month the SAP system will perform the allocation as follows:
(a) As explained in B.1. above, arrive at the MTDC base for each primary volume cost collector assigned to the laboratory.
(b) Multiply the MTDC base for each cost collector by the applicable allocation rates. The results will be charged to cost collectors as follows:
(1) Allocated Salaries & Wages
On Campus - G/L Account 600100
Off Campus - G/L Account 600101
(2) Allocated M&S Allocated M&S
On Campus - G/L Account 600104 Allocated M&S
Off Campus - G/L Account 600105
Note: On campus G/L Accounts used unless laboratory is designated as off campus.
EXAMPLE
Laboratory X
Fiscal Year Volume
| GL Account | Total Money | Exclusions | MTDC Base |
| 400025 Faculty Sal-Ten | $90,000 | $90,000 | |
| 400450 Hourly Pers-On | 5,000 | 5,000 | |
| 400452 Hourly Pers-Off | 1,000 | 1,000 | |
| 400602 Support Staff-On | 18,000 | 18,000 | |
| 400754 MIT Students-On | 8,000 | 8,000 | |
| 420050 Travel | 5,000 | 5,000 | |
| 420226 Materials & Services | 40,000 | 40,000 | |
| 420258 Office Supplies | 5,000 | 5,000 | |
| 420620 Subrec Agree-Not MTDC | 5,000 | (5,000) | |
| 420710 Consultants | 3,000 | 3,000 | |
| 421818 Equip-Not MTDC | 10,000 | (10,000) | |
| 421833 Equip Rental-Not MTDC | 1,000 | (1,000) | |
| $191,000 | $(16,000) | $175,000 |
| Charges to Allocation Account | |
| Administrative Staff | $25,000 |
| Support Personnel | 30,000 |
| Supplies | 8,000 |
| Telephone | 2,000 |
| Xerox | 3,000 |
| $68,000 |
Allocation Rates
| Allocated Salaries & Wages | |
| Administrative Staff | $25,000 |
| Support Personnel | 30,000 |
| Total Salaries & Wages | 50,000 |
| / MTDC Base | $175,000 |
| Salaries and Wages Allocation Rate | 31.43% |
| Allocated M&S | |
| Supplies | $8,000 |
| Telephone | 2,000 |
| Xerox | 3,000 |
| Total M&S | 13,000 |
| / MTDC Base | $175,000 |
| M&S Allocation Rate | 7.43% |
EXAMPLE
Laboratory X
Project Cost
| GL Account | Total Money | Exclusions | MTDC Base |
| 400025 Faculty Sal-Ten | $1,000 | $1,000 | |
| 400450 Hourly Pers-On | 300 | 300 | |
| 400602 Support Staff-On | 500 | 500 | |
| 420050 Travel | 100 | 100 | |
| 420226 Materials & Services | 500 | 500 | |
| 421818 Equip-Not MTDC | 700 | (700) | 0 |
| 421833 Equip Rental-Not MTDC | 200 | (200) | 0 |
| $3,300 | (900) | $2,400 |
| One Month's Allocation | |
| MTDC Base | $2,400 |
| x S&W Allocation Rate | 31.43% |
| Amount to G/L Account 600100 (1) | $754.32 |
| MTDC Base | $2,400 |
| x M&S Allocation Rate | 7.43% |
| Amount to G/L Account 600104 (1) | $178.32 |
(1) These amounts are credited to the same G/L Accounts in the allocation account.
For more information, please complete this allocation rate request form.