Allocation Rates

Current Allocation Rates by Component

The MIT fiscal year runs from July 1 to June 30.

FY2022 Final Approved Interdepartmental Laboratory Allocation Rates Letter - August 5, 2021

FY2022 Fixed Rates
Lab Acronym Interdepartmental Laboratory Name S&W M&S Utilities
CSAIL Computer Science & Artificial Intelligence Laboratory 8.60% 0.60% N/A
CTL Center for Transportation & Logistics 3.10% 0.00% N/A
HAYSTACK Haystack Observatory 22.10% 5.80% 5.70%
LIDS Laboratory for Information and Decision Systems 9.30% 0.00% N/A
LNS Laboratory for Nuclear Science 6.90% 0.00% N/A
MITei MIT Energy Initiative 6.00% 0.00% N/A
MKI MIT Kavli Institute for Astrophysics and Space Research 9.20% 0.50% N/A
MRL Materials Research Laboratory 4.60% 0.00% N/A
PSFC Plasma Science and Fusion Center 8.40% 1.20% N/A
RLE Research Laboratory of Electronics 10.20% 0.00% N/A
SSRC MIT Sociotechnical Systems Research Center (MIT SSRC) 5.10% 0.00% N/A

Overview of Allocation Rates

The 11 interdepartmental laboratories with allocation rates use allocation accounts to accumulate the costs of the laboratory central administrative group. These allocation costs are largely the administrative and support salaries and non-salary expenses incurred for the overall administration and management of the lab. Unallowable costs cannot be charged to the allocation accounts. The allocation rates are used for uniformly assigning allocation costs to all cost collectors (WBS Elements, Internal Orders, Cost Centers, etc.) with certain exceptions. In general, the cost collectors excluded from receiving the allocation charge(s) are laboratory director general accounts, service facilities, fabricated equipment, payroll/suspense & clearing accounts, and telephone equipment & network accounts.

Each lab charges its own set of allocation rates. In addition, separate rates are calculated for distributing salaries in the allocation account (the S&W rate) and non-salary costs (the M&S rate) for each lab. Haystack Observatory, which is an off-campus lab, also uses a Utilities rate for the distribution of its utilities costs.

Referencing the example below, within each receiving cost object, SAP applies each allocation rate to all direct expenditures except modifiers, such as equipment(1), tuition, subcontracts (greater than $25K)(2), employee benefits(3), vacation accrual(4), and indirect costs(5). This base can be referred to as an adjusted modified total direct cost (Adjusted MTDC) base.

Allocation Rates Sample Chart