RSP has announced that UW-Madison has requested and received an extension to our existing F&A Rate Agreement. This extension was a flexibility offered by the Office of Management and Budget in Memorandum M-20-17.
The extension permits us to do two things. First, it allows us to use the rates planned for the period 7/1/2021 to 6/30/2022 until at least 6/30/2023 or when a new F&A rate agreement is signed. This will introduce additional stability in budgeting and spending for at least one more year. Second, the extension enables UW-Madison to use FY2022 instead of FY2021 as its base year for our next indirect cost rate proposal. We anticipate that the pandemic will impact FY2021 expenditures and hope that FY2022 will see a return to more normal activities and expenditures.
The updated F&A Rate Agreement has been posted on the RSP rates page, and revisions have been made to the Effective Period dates for F&A rates listed on the page.