When a proposal period crosses fiscal years with different F&A rates, budgets must reflect the change in rates from one fiscal year to the next. The OSR Proposal Budgeting Tool automatically calculates a composite F&A rate based upon the start date of the project, and assumes expenditures will be equal from month to month. If not using this tool, PIs/PDs need to build a formula which blends the rates across the fiscal years, much as is done with composite fringe benefits rates. Composite rates are not approved by UNH’s cognizant agency and, although used to apply approved rates in different periods, composite rates should not be stated as percentages per se in the proposal budget. The proposal budget narrative should explain how the budgeted amount was derived. (For example, the narrative could specify that the approved rate of x% should be applied for February through June of the upcoming fiscal year and the hypothetically approved rate of y% should be applied for the following fiscal years.)