Jeff:

An important issue to remember is that space and base need to be consistent.
However clinical trials might be classified in the base the space must also
be classified that way. If clinical trials use less space than research, it
may be appropriate to calculate a rate different from the research rate.

You may want to initiate dialogue with your cognizant office.

Anne

Anne Habel
Regulatory Manager
Community Research Initiatives
320 Washington St.
Brookline, Ma. 02445-6850

email:   xxxxxx@crine.org
phone:  617.566.4004 ext 225
fax:        617.566.8226

-----Original Message-----
From: Jeff Myers [mailto:xxxxxx@SIU.EDU]
Sent: Tuesday, April 03, 2001 12:59 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] IDC Proposal Question

Hello all:

We are in the middle of compiling the data for our upcoming indirect cost
rate negotiation.  A consultant has recommended that we categorize clinical
trials as "other sponsored programs" for IDC purposes.  Currently clinical
trials are tabbed here as research (and in the research base potentially
reducing our rate).  The consultant has indicated that many medical schools
are handling it this way.  I'm looking for verification that this
consultant is correct.  Any comments anyone has on pros and cons would also
be appreciated.  One potential downside mentioned by a colleague was that
clinical trials were designated as research to avoid potential UBIT
issues.  I wouldn't think that changing the designation for financial
statement purposes would impact UBIT.  I would think that the nature of the
activity would be a more important UBIT test.

Thanks in advance.

Jeff Myers
Southern Illinois University

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 subscription information and a web-searchable archive, are available
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