Thanks, Chris.  We're interested in moving to that policy.  We're losing
about $1M/year in unrecovered indirects by keeping direct costs stable.

Kim

-----Original Message-----
From: Chris Cox [mailto:xxxxxx@UTK.EDU]
Sent: Wednesday, July 02, 2003 3:32 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] Really Quick IDC Question!

At The University of Tennessee,  $10,000 awarded in equipment and
subsequently reallocated to supplies would result in a PI being able to
spend $6896 on supplies and the University recovering the associated $3103
in F&A (45% MTDC).  In the event $10,000 was awarded in supplies and
subsequently reallocated to equipment, a PI would be able to spend $14,500
on equipment, i.e. $10,000 plus $4500 originally budgeted in F&A (45% MTDC).

 At 02:40 PM 7/2/2003 -0700, you wrote:
>         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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Chris Cox
Director of Grants and Contracts &
 Facility Security Officer
The University of Tennessee
Office of Research
404 Andy Holt Tower
Knoxville, TN  37996-0140
(865) 974-2465
FAX:  (865) 974-2805

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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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