Question:  we have a proposal budget in to a federal agency for Phase II of
a project.  In Phase I we included administrative support as a direct cost
under A-21 F.6.b major project.  We replicated this in Phase II.  The
agency is now questioning these costs in our Phase II budget, and do not
feel that it meets all the criteria under Exhibit C.

We disagree and are looking at providing a further written justification
for direct charging these expenses to this project.  For those of you that
have gone through this before, what type of justification did you
provide?  Were there particular phrases or examples that proved to be
especially effective/persuasive?

Any assistance the group could provide would be greatly
appreciated!  Please respond either to me directly or to the listserve (I'm
sure there are other institutions that are facing this!!)

Thanks!

Valrey V. Kettner
Assistant Vice President
Sponsored Programs Administration

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