John,

 One citation that you may be looking for is OMB Circular A-21 (Revised
10/27/98), along with one or more of the sections and subsections referenced
in the cited paragraph:

"Section G. Determination and application of F&A cost rate or rates.
1. F&A Cost Pools
a....(3) Each institution's F&A cost rate process must be appropriately
designed to ensure that Federal sponsors do not in any way subsidize the F&A
costs of other sponsors, specifically activities sponsored by industry and
foreign governments.  Accordingly, each allocation method used to identify
and allocate the F&A cost pools, as described in Sections E.2 and F.2
through F.9, must contain the full amount of the institution's modified
total costs or other appropriate units of measurement used to make the
computations.  In addition, the final rate distribution base (as defined in
subsection 2) for each major function (organized research, instruction,
etc., as described in Section B.1) shall contain all the programs or
activities which utilized the F&A costs allocated to that major function.
At the time a F&A cost proposal is submitted to a cognizant Federal agency,
each institution must describe the process it uses to ensure that Federal
funds are not used to subsidize industry and foreign government funded
programs."

Best regards,
Howie Kaplan
**********************************************
Director, Research Services & Sponsored Progs.
Georgia Southern University
Hwy. 301 So. Office Bldg., P.O. Box 8005
Statesboro, GA 30460-8005
912-681-5465; FAX: 912-681-0719
xxxxxx@gasou.edu
**********************************************

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On Behalf
Of F. John Case
Sent: Friday, March 16, 2001 9:29 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] funding sources - need help quick

Hello all,

I am asking my fellow research administrators a question I thought I
could put my hands on quickly, but can't.  I have been asked by the
upper level administration to get the citation for "charging all
expenses the same across all funding sources."  My interpretation of
their question is that we can't only charge sponsored research projects
for additional benefits, we must charge all fund sources (state, trust
funds, endowment income and grants/contracts) for theses benefits.  I
may not have stated this to well, but it goes back to the concept that
just because you have grant funds that can be rebudgeted, you can charge
them for pay increases and not charge the other types of funds (I am not
sure that simplified my issue?).

Does anyone have the exact citation from the federal regs - I looked in
the OMB Circulars and couldn't put my finger on it (maybe I missed it).
I need it today - any help/guidance is appreciated.

Thanks a lot and have a great weekend.

John

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