That has happened to us with USDA grants, but rarely.  It mostly becomes an
issue when there are severalsubs on the grant and the TDC base takes a big
bite out of the total cost limit allowed by the program.  In that case, our
VP has agreed to take the 23.456% only on the first 25K of the subs or
return a portion of the IDC to the PI.

Overall, rarely do we get more IDC back on a USDA grant than we would have
when using our negotiated rate.

Maryellen O'Brien
Assistant Director
Grant and Contract Administration
Office of Research and Sponsored Programs
Rutgers University
Cook College
88 Lipman Drive, Room 125
New Brunswick, NJ  08901

-----Original Message-----
From: Jeffrey Silber
To: xxxxxx@HRINET.ORG
Sent: 1/28/04 2:57 PM
Subject: Re: [RESADM-L] F&A question

I'm in full agreement with what has been said regarding the
applicability of the negotiated rate to non-federal projects.

What position do people take where it is a federal sponsor statutorily
has a TDC rate?  For example, a USDA project with a TDC award providing
equipment could exceed what would be provided on a MTDC base.

At 08:39 AM 1/28/2004 -0700, you wrote:

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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 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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