This sounds VERY bizarre.  Let's see if I get this correct.  You are going to
send the state money so they can claim it as a "donation" and then return it to
you commingled with the federal funds?  Can we say "audit exception?"

As I said in my cost sharing presentation at Region III last year, keep it
simple.  Stuff like this draws auditors like ants to a picnic.

"Freed, Linda" wrote:

> 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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--
Gregory K. Schmidt
Assistant Controller
Florida A&M University
201 FHAC
Tallahassee, FL  32307

850.561.2956 voice
850.561.2461 fax

"In dreams begins responsibility."

 W.B. Yeats - Responsibilities

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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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