Re: Cost-sharing Question Quinn, Bradley L 26 Jun 2000 11:49 EST
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 >> >> ====================================================================== >> 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") >> ====================================================================== > >-- >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 > > >====================================================================== > 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") >====================================================================== > I am out of the office today, returning on Monday, June 26th. ====================================================================== 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") ====================================================================== ====================================================================== 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") ======================================================================