Virginia does not have a statewide legislation or executive policy
requiring payment of full, or any specific, F&A as between state agencies
and state universities.

We do have a promulgation from the State Controller which states the
following:  "Agencies and institutions must apply the [federally
negotiated] indirect cost rate...to all grants and contracts unless
prohibited by the grantor."

Later it says:
Agencies and institutions that receive federal funds for "pass through" to
subgrantees will:
a.  Allow for a reasonable indirect cost component in the federal funds
that are passed through...
b.  Make available to subgrantees, upon request, all pertinent information
concerning the allowability of indirect costs...."

[ BUT please be aware that state agencies almost always refuse to cooperate
and to comply with these rules.  At best we are likely to get 5-10%, but
usually not even that, because state agencies do not allow for F&A in their
proposals or their budgeting of block grants.]

It also says,
"Agencies and institutions that receive state funds [i.e., appropriated
from state tax revenues] as grants and contracts from other State agencies
may negotiate with the grantor agency to recover indirect costs that they
incur."  All the state agencies take the position that state funds should
never pay indirect, so the state agencies can be assured that "all costs go
toward program activities that the General Assembly intended".  They get
away with it, because if one institution asks for indirect, they just give
the award to another, which will waive indirect.

We would be very appreciative of any compilation of results you get!!

Chuck

At 09:13 AM 9/19/00 -0400, you wrote:
>In Florida, the legislature has written into law a 5% limitation on indirect
>costs that can be charged on contracts between state agencies..  This 5%
>limitation also applies to overhead charged on federal flowthough contracts
>between state agencies.  If your State has similar restrictions on overhead
>rates charged on contracts between state agencies, please let me know. I
>would like to know any restrictions and the allowable rate(s).  Actually if
>your State has no restrictions and allows the agency's full negotiated
>indirect cost rate, please respond with that information.  I'll be happy to
>collect the information and share the results with the group.
>Regards,
>Linda Hayes,
>USF, Office of Research
>
>[This post sent on behalf of Linda Hayes by Rick Skinner, USF, Office of
>Research]
>
>
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Virginia Commonwealth University
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