Michael,

Since you are totally responsible for the subcontractor's performance, you
must have audit access.  I would tell them it is non-negotiable.  As a
non-profit, I can't see why this should even be an issue for them.  I have
never had anyone -- non-profit or for-profit -- balk at allowing us access
to their books when we are subcontracting to them.

Claire L. Carlson
Associate Vice President for Research
The University of Montana

At 05:27 PM 12/2/2002 -0500, you wrote:
>I am currently negotiating a subaward to a well-established nonprofit
>corporation under an NSF grant .  The corporation will not provide audit
>access to my institution but is willing to provide audit access to
>representatives of the federal government.   The justification for denying
>audit access is that salary data and the F&A rate are considered
>proprietary information.   My opinion is we need this access in order to
>carry out our responsibilities as the grantee.   Over the years I have
>never run into trouble around this particular issue when subcontracting to
>a wide range of commercial, nonprofit and educational institutions.
>
>I would very much appreciate hearing any suggestions and the experiences of
>others who have run into this issue.
>
>Thanks as always for your good advice.
>
>Michael Pelletier
>Assistant Director, Office of Sponsored Programs
>Education Development Center, Inc.
>(617)618-2227
>
>
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Claire L. Carlson
Associate Vice President for Research
The University of Montana
E-mail: xxxxxx@selway.umt.edu
Phone: 406-243-5796
Fax: 406-243-5739

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