Christy,

Yes, your clients can use the money recouped from the F&A costs.  An
earlier respondent was correct, the F&A rates are based on real costs
and are meant to reimburse the university for those costs.  However,
universities pay the real costs (heat, lights, snow-removal, etc.) out
of one "account" and F&A reimbursements get deposited into another
"account". It is up to the university where they ultimately distribute
the money from the F&A account.  They can put it back in the light bill
account or they can use it for cost-sharing or as "discretionary" money
for departments or PI's to further their work.

Ruth Tallman
Lehigh University

Christy Jarrett wrote:
>
> It seems by the recent response of F&A distribution that the funds can
> be spent any way the college chooses.  As someone more familiar with
> proposal writing than the administration of federal grants in the
> university setting, I use this LISTSERV as a learning tool and hope
> you will not mind if I ask questions from time to time.
>
> One of my clients is a small university where a lot of grant
> opportunities have to be passed upon due to the cash match required.
> Could they not use the money recouped from their indirect cost rate to
> build up a matching fund pool?  I welcome your thoughts and opinion.
>
> Christy Jarrett,
> President, Jarrett & Associates
> PO Box 416
> Powellton, WV 25161
>
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