I noticed in last week's discussion about FIPSE F&A rates that a number of
colleges and universities indicated that they had used the DoEd suggested
rate of 8% of TDC and showed as part of their cost share the difference
between this figure and the amount they would have recovered for F&A had
they used their federally-negotiated rate.

In several NCURA-sponsored workshops I've attended over the past six
months, however, I have heard several times that doing this will ultimately
bring down an institution's F&A rate.

I'm curious as to whether other institutions have any policies regarding
this issue and how frequently this practice is used when cost sharing is
required and F&A cost restriction are required or strongly encouraged.

And could someone who understands better than I do the issues surrounding
the negotiation of indirect rates explain (again) to me why it might be a
bad idea to do this?

Thanks.
Laura C. Hartley, Ph.D.
Grants Officer/Staff Writer
Office of the Provost
Lesley College
29 Everett Street
Cambridge, MA 02138-2790
Phone: 617-349-8795
Fax: 617-349-8974
email: xxxxxx@mail.lesley.edu

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