The rate the University is authorized to charge Federal sponsors to cover F&A costs for sponsored programs. The rates are set based on location (On-Grounds/On-Campus or Off-Grounds/Off-Campus) and the type of activity (organized research, instruction, or other sponsored program). For federally funded sponsored programs, rates are applied as a percentage of the Modified Total Direct Costs supporting the sponsored program. The Federal agency that sets the University’s F&A rates is the Department of Health and Human Services.