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Administrator Guide
Last Updated: 2026-06-12
Create Facilities and Administration Exceptions

Create Facilities and Administration Exceptions

For awards with cost reimbursable and fixed amount award lines, you can use F&A exceptions to:
  • Override the F&A or indirect cost rate on your F&A rate agreement with a new rate.
  • Waive part of the F&A costs for your sponsor and distribute the waived costs among your organizations.
You can also create exceptions to override or waive F&A rates only for specific object classes within a basis type.
You can only associate 1 award with each F&A exception.
  1. Access the
    Create Facilities and Administration Exception
     task.
  2. As you complete the task, consider:
    Option Description
    Exception Name
    F&A exceptions are specific to awards. For easy identification, enter a unique name that associates the award with the exception.
    Basis Type
    Workday uses the basis type to determine the object classes eligible for F&A cost reimbursement.
    Select the basis type on the F&A rate agreement that you want to associate with this exception.
    Exception Type
    For all spending in the basis type, select whether you want to override the institutional F&A rate, waive the rate, or both.
    To override or waive F&A rates only for spending in specific object classes:
    • Select
      No Primary Exception
      .
    • Add the details in the
      Exception Detail
       section.
    Primary Rate Override
    Enter the new percentage rate with which to override the F&A rate in the rate agreement. This rate applies to all expenditures in the basis type that you select.
    Primary Waive Rate
    Enter the new percentage rate to charge to the sponsor. Your organization incurs the difference between the waive rate and the F&A rate in the rate agreement.
    Example:
    The effective F&A rate (either the F&A rate on the rate agreement or the
    Primary Rate Override
    ) is 50%, but your sponsor would only pay 30% for F&A. Set the
    Primary Waive Rate
     to
    30
     and incur the remaining 20% according to allocations in the waived expense allocation profile.
    "When the
    Primary Waive Rate
     is equal to or higher than the effective F&A rate, the sponsor bears 100% of the F&A costs; the cost-share portion for F&A is 0%.
    Waived Expense Allocation Profile
    Workday distributes the underrecovery across organizations or other funding sources according to the waived expense allocation profile that you select.
  3. (Optional) To override or waive the F&A cost rate for a specific object class, add a row in the
    Exception Detail
     section. As you complete the row, consider:
    Option Description
    Object Class
    Select the object class that you want to apply the F&A exception to. You can select from object classes in the
    Basis Type
     object class set.
    To avoid applying the F&A exception to unmapped spend categories or pay component groups, don't specify the default object class in your object class set.
Workday applies exceptions to expense items that map to object classes on award lines.
To review the F&A accounting, select
Accounting
View Accounting
 from the related actions menu of the original spend. Workday debits nonwaived expenses to a sponsor fund. Workday distributes waived expenses across organizations or other funding sources according to the waived expense allocation profile.