OMB Circular A-21 G.2. "Determination and application of F&A cost rate or rates
- The distribution basis" states that F&A shall be distributed based upon MTDC
which they then define to include the first $25K of each subcontract and
subgrant.  If the base upon which F&A is determined is changed by the sponsoring
agency, use the definition of that base.  If you're allowed 8% of TDC, then you
would use all direct costs including equipment, recharge centers and the amount
over $25K on each subcontract.  If you're allowed 52% on S&W, then you get $-0-
for any non-salary expenditure including the FIRST $25K of the subaward (I must
admit, I've never seen an F&A base awarded on S&W).  The form used to determine
the F&A rate holds no relevance to the issue.

"Howell, Robert J" wrote:

> There was a discussion fairly recently concerning the limitation of F & A
> cost recovery to the first $25,000 of any subaward.  This is now relevant
> for us since we have received an award for which we will be issuing a
> subaward for the first time, and I have a couple of questions.  Since this
> limitation appears to be based on the long form MTDC basis, does it apply to
> short form schools?  Does it apply to awards in which the F & A recovery is
> limited to 8% TDC?  Our proposal included the collaborator's budget and the
> award document budget includes the subaward in calculating the 8% F & A. Any
> clarification is greatly appreciated.
>
> Thanks,
>
> Bob
>
> J Robert Howell,  CPA
> Accounting Services Manager
> University of Southern Indiana
> 8600 University Boulevard
> Evansville,  IN  47712
> Phone:  (812) 464-1809
> Fax:    (812) 464-1958
> e-mail: xxxxxx@usi.edu
>
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--
Greg Schmidt
Manager, Contract & Grant Accounting
Florida A&M University
201 FHAC
Tallahassee, FL  32307-3200

DUNS:  623751831

College of the Year - 1997

voice:   850 561-2956
fax:     850 561-2461

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 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
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