Our university has been a subcontractor for federal flow-through dollars
from a certain state agency for several years.  Until now there has been no
cost-share requirement for these funds.  The state agency has now decided
(discovered?) that they can leverage more federal dollars if they require us
and their other subcontractors to provide cash cost-share.

However......As I understand from from the agency representative, he does
not really want "cost-sharing funds" to be provided by us as subcontractors
on a grant, at least not "cost-sharing" in the sense of direct expenditures
from institutional funds in support of the project that operates on our
campus.  What he really wants is "front money" --  He wants us to make a
"donation" to  his agency, which he can put into an account at his agency
and they can use our dollars, combined with similar donations from other
subcontractors, to leverage federal dollars.  Eventually, these dollars
would flow back to us in contracts from his agency.  There is the assumption
that when the dollars come back to us, they will be accompanied by some of
the federal dollars that his agency obtained by using our dollars as
matching funds.

I have never encountered an arrangement like this, and it strikes me as
risky at best.  I'd appreciate reactions and/or insights from colleagues who
may have experience with anything similar. Thanks.......

Linda S. Freed
Office of Grants and Sponsored Programs
Austin Peay State University
P. O. Box 4517
Clarksville, TN  37044
voice:  931-221-7881; fax: 931-221-7304
e-mail:  xxxxxx@apsu.edu

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