Leveraging programs aren't that uncommon. Social Security Administration
and many DHHS awards leverage the amount of "State certfied match". In
other words, the more we can document as a contribution, the more funding
will be provided. State agencies are catching on to the fact that unrecoved
indirect cost may represent an untapped source of certified match. The
possiblity exists to use uncapped indirect cost rates to determine the
match. See DHHS DAB 1717 for a recent apepals decision affecting such
programs.
-----Original Message-----
From: Therese Kummer [mailto:xxxxxx@OAKLAND.EDU]
Sent: Monday, June 26, 2000 7:10 AM
To: xxxxxx@HRINET.ORG
Subject: Re: Cost-sharing Question
At 04:33 PM 6/13/00 -0400, you wrote:
>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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>
I am out of the office today, returning on Monday, June 26th.
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