These are used when budgeting across fiscal years and the rates approved by UNH’s cognizant agency are different from one fiscal year to the next. In these cases straight line spending is assumed. The OSR Proposal Budgeting Tool automatically calculates composite rates based upon the start date of the project. If not using this tool, PIs/PDs need to build a formula which blends the rates across the fiscal years. For example, if proposing a start date of January 1, 2010 and developing a one year budget, PIs/PDs would need to calculate a composite rate for fringe benefits since the rate for FY10 is 42.2% and the rate for FY11 is 42.9%. The composite rate would yield 42.5% in this instance [(42.2% x 6/12) + (42.9% x 6/12)].

PIs/PDs should note that composite rates are tools, derived from but not federally-approved rates. Though such rates are used to apply approved rates in different budget periods, the composite percentages should not be included per se in the proposal. The proposal budget narrative must explain the rationale behind the rates being used in the proposal and the relevant periods. (For example, the budget narrative might state that the amount for fringe benefits is the sum of 4 months at “x” approved Federal rate and 8 months at “y” approved Federal rate.)