You should find your federally-negotiated rate agreement makes no
attempt to cover the rates you charge other customers. If the state
mandates a rate, you should use it regardless of the circumstances.

Dudley
Dudley Q. Sharp
Contracts Officer
Office for Research and Sponsored Projects Administration  Arizona State
University
480-965-0273
xxxxxx@asu.edu
-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On
Behalf Of Kim Chanley
Sent: Wednesday, January 28, 2004 8:40 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] F&A question

Hello colleagues,
I've asked around but haven't gotten any clear guidance on this
question:

Our institution's current federally-negotiated F&A rate is 46% of
Salaries and Wages. However, the State Board of Education's policy is to
allow 25% of Total Direct Costs on all state grants.  In some
circumstances, therefore, there is a potential for us to collect F&A in
excess of our federally-negotiated rate (i.e., on state grants that are
primarily Other Direct Costs with little salary).  Is this allowable?

Thanks in advance for your advice!

Kim Chanley

Kimberly Chanley
Operations Manager
Sponsored Projects Accounting
Boise State University
208.426.1791

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