When can I use the Off-Campus Rate?

OFF-CAMPUS DEFINITION (Effective July 1, 1997): For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Grants or contracts will not be subject to more that one F&A cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project.

To make the On/Off determination, review the budget to identify where the MSU expenses (MSU expenses = total budget less equipment, space rent, subcontracts, and indirect) will occur.  If the majority of the MSU expenditures are incurred and/or used off-campus then the full project gets the off-campus rate, and vice versa.  Since the difference between the On and Off campus rates are for MSU facility costs, we exclude from the determination budget categories for: equipment - because the cost is not necessarily related to the amount of space it occupies; space rent - because it duplicates those expenses in the on campus rate (heating, lighting, building depreciation, facilities maintenance, etc.); subcontracts - because they are non-MSU activities; and indirect - because first you need to identify which rate (On vs. Off) to use.  The actual charge for rent is NOT required to receive the off-campus rate. Because the MSU Kellogg and Henry Centers charge rates that include utilities we consider their conference expenses as off-campus when making the on/off campus determination.

MSU was required to make this definitional change during our last negotiation with the Department of Health & Human Services. Prior to July 1997 the old approach was based on the preponderance of the dollar amount of effort: e.g., when the total off-campus salaries charged to a grant of contract exceed the total on-campus salaries charged to a grant or contract, the off-campus rate will be applied to the project and nice-versa. This salary based approach to determine on or off-campus is no longer available.

Updated 5/2006