Claire,

Thanks for the response.  We've found the same problem that you did.  If the
faculty doesn't have to be responsible for total costs, they don't budget as
carefully.!

Kim

-----Original Message-----
From: Carlson, Claire [mailto:xxxxxx@MSO.UMT.EDU]
Sent: Wednesday, July 02, 2003 3:14 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] Really Quick IDC Question!

Kim,

As long as the sponsor allows us to rebudget between direct and indirect, we
use your option #2.  We started doing this about 4 years ago.  To not do so
encourages PIs to overbudget equipment initially, and then rebudget to
categories assessed indirect later as a way to reduce the their IDC burden.

The only time we follow your option #1 is when the sponsor does not allow
rebudgeting between direct and indirect (Commerce is one agency that has
this rule).

Hope this helps.

Claire L. Carlson
Associate Vice President for Research
The University of Montana
Research and Sponsored Programs
University Hall 202
Missoula, Montana  59812-4104
Phone (406) 243-5796
Fax (406) 243-5739

-----Original Message-----
From: Moreland, Kim [mailto:xxxxxx@FHCRC.ORG]
Sent: Wednesday, July 02, 2003 3:41 PM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] Really Quick IDC Question!

 I would really appreciate your response to the question below.  At
the Hutchinson Center, we currently follow option #1, but we're looking at
making a change.  Thanks very much!

 What does your institution do when a PI reallocates budget funds
from a category like equipment, which is excluded from indirect costs, into
a category like supplies, on which indirect costs are earned?
 (1) Leave the total direct costs at the level awarded, even
though you would not be able to recover the full indirect costs earned?  OR
 (2) Move the associated indirect costs in relation to the
direct costs, thus moving within the total costs awarded (rather than just
within total directs?

 Kim

 Kim Moreland, Director
 Grant and Contract Administration
 Fred Hutchinson Cancer Research Center
 1100 Fairview Avenue, N
 M/S J6-500
 Seattle, Washington  98109
 xxxxxx@fhcrc.org
 206/667-4868 (voice)
 206/667-6221 (fax)

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 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
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