Re: Program Income Question Herbert B. Chermside 27 Feb 2003 12:33 EST

See comments.
Chuck

At 10:36 AM 2/27/2003 -0500, you wrote:
>Chuck,
>We have limited program use to the period of the parent grant.  We apply
>to it the same F&A rate as is used in the parent grant.

Are you applying an F&A rate to the program income as you use it?  This
confuses me a little.  We never have.  It is not immediately obvious
whether that is legal or not.  All of us do impute F&A on our cost sharing;
it just is in the University pool rather than the Research pool when F&A is
calculated.  But program income is essentially revenue derived as a result
of using goods and services paid for by the grant, on which you have
already claimed F&A.  I'd like to hear others on this.

>The university also has other revenue accounts that have not involved
>sponsored programs (conferences, etc.) that charges an administrative
>fee of 30%, higher than the usual F&A on such program-generating
>projects

>Question:  After the grant period, is the university still required to
>charge F&A at the rate in the parent award, or can it switch to the
>negotiated rate or some other revenue account rate?

Why should it be limited to the F&A rate?  It is an administrative fee, not
F&A, that's being charged.  For that matter, the administrative rate being
higher than the F&A rate sounds like your F&A rate (that's facilities and
ADMINISTRATION)  is too low, or you measure the administrative cost in F&A
differently than in other areas, which might signify inconsistency.  But I
believe you have a short form F&A rate, so you are probably getting really
shorted there.

Of course if you switch rates in a way the faculty sees as mid-stream,
you'll fail to make friends and influence people.

>Janet
>
>********
>Janet M. Hahn, C.R.A.
>Executive Director
>Office of Sponsored Programs & Grants Management
>Radford University
>Radford, VA  24142-6926
>
>tel:  540-831-5479
>fax:  540-831-6636
>xxxxxx@radford.edu                             www.radford.edu
>
>
>
>-----Original Message-----
>From: Herbert B. Chermside [mailto:xxxxxx@VCU.EDU]
>Sent: Thursday, February 27, 2003 10:21 AM
>To: xxxxxx@HRINET.ORG
>Subject: Re: [RESADM-L] Program Income Question
>
>
>Program Income, per A-110
>
>___.24 Program income.
>
>                                  (a) Federal awarding agencies shall
>apply the standards set forth in this section
>                                  in requiring recipient organizations to
>account for program income related to
>                                  projects financed in whole or in part
>with Federal funds.
>
>                                  (b) Except as provided in paragraph (h)
>below, program income earned during
>                                  the project period shall be retained by
>the recipient and, in accordance with
>                                  Federal awarding agency regulations or
>the terms and conditions of the award,
>                                  shall be used in one or more of the
>ways listed in the following.
>
>                                            (1) Added to funds committed
>to the project by the Federal
>                                       awarding agency and recipient and
>used to further eligible project or
>                                       program objectives.
>
>                                            (2) Used to finance the
>non-Federal share of the project or
>                                       program.
>
>                                            (3) Deducted from the total
>project or program allowable cost in
>                                       determining the net allowable
>costs on which the Federal share of costs is based
>++++
>
>If option 1, consider "the project" the entire program, not just the
>specific grant period.  This allows you to use the program income to
>continue the project without federal funds.   This is one of the uses
>envisioned when A-110 was drafted.   This reflects agency, recipient and
>Congresses intentions.  "Grant period" was specifically not used in the
>final wording.
>
>Chuck
>
>
>
>At 05:56 PM 2/26/2003 -0500, you wrote:
> >Hi Folks,
> >
> >Got a quick question for the group...  we have a Bureau of Health
> >Professions training grant for which any program income is to be used
> >for additional costs.  What I would like to know is if the program
> >income must be used during the term of the award or if we can use the
> >program income to further the purposes of the award after it has
> >expired.  (We'd like to hold the income we're receiving now until the
> >grant has expired so that we can keep the program running later.)
> >
> >I think I know the answer, but thought I'd check the collective wisdom
> >out there.
> >
> >Thanks,
> >
> >Craig
> >
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>
>Herbert B. Chermside, CRA
>Director, Sponsored Programs Administration
>Virginia Commonwealth University
>PO BOX 980568
>Richmond, VA  23298-0568
>Express Delivery Only:
>         Biotech One, Suite 113
>         Virginia Biotechnology Research Park
>         800 East Leigh Street
>         Richmond, VA 23219
>Voice:  804-828-6772
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>OFFICE e-mail   xxxxxx@VCU.EDU
>Personal e-mail xxxxxx@vcu.edu http://www.research.vcu.edu/ospa.htm
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Biotech One, Suite 113
 Virginia Biotechnology Research Park
 800 East Leigh Street
 Richmond, VA 23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://www.research.vcu.edu/ospa.htm

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