Dear Chuck, thanks, this is how I see the issue; however, my Accounting staff has gotten a preliminary read the other way from our outside auditors. If the final answer my Accounting office accepts goes the "wrong way" (saying the foregone indirect as a cost share reduces the subsequent indirect cost proposal, lowering the rate), I will be in need of references to OMB circulars or some such to win the day. Please stay tuned.
Thanks, Dan Snyder
Mr. Dan Snyder
Administrative Director
Patrick Center for Environmental Research
Academy of Natural Sciences
1900 Ben Franklin Parkway
Philadelphia, PA 19103-1195
Phone: (215) 299-1065
FAX: (215) 299-1079
xxxxxx@acnatsci.org
http://www.acnatsci.org/research/pcer/
>>> xxxxxx@VCU.EDU 04/23/04 01:38PM >>>
Someone got it right: "since no actual indirect costs are involved in the
cost share, only foregone revenue, the cost share has no effect on the
subsequent indirect cost proposal."
Indirect costs are real costs. You pay them. And they apply to all like
(research, education, other) projects, no matter what external agency funds
the projects. Whether or not you get reimbursed for them makes no
difference in how you count them in your proposal for setting a
reimbursement rate.
NEVER let anyone confuse the indirect costs you spend, and the
reimbursement you may (or may not) get to cover these already paid costs.
Chuck
At 09:00 AM 4/23/2004, you wrote:
>Does foregoing indirect costs to provide cost sharing have any effect on
>our subsequent indirect cost proposal? For example: We are preparing a
>proposal to a state agency that requires cost sharing. They are willing to
>accept foregone indirect costs as a form of cost sharing. So, we will
>only charge an indirect cost rate of 10% MTDC, which is well below the
>rate negotiated with our cognizant federal agency.
>
>So far, so good. However, the question has arisen here internally as to
>whether this form of cost sharing has any effect on the next indirect cost
>proposal we prepare for our cognizant federal agency. One view is that
>since we promised these foregone indirect costs as cost sharing to the
>state agency, we must deduct the amount of indirect cost recovery foregone
>from our stated indirect costs in the next proposal to the cognizant
>federal agency. The other view is that since no actual indirect costs are
>involved in the cost share, only foregone revenue, the cost share has no
>effect on the subsequent indirect cost proposal.
>
>We are in the process of tracking down information to enlighten our
>internal debate, and would appreciate input from you experts who inhabit
>this list! Thanks for any help.
>
>Mr. Dan Snyder
>Administrative Director
>Patrick Center for Environmental Research
>Academy of Natural Sciences
>1900 Ben Franklin Parkway
>Philadelphia, PA 19103-1195
>
>Phone: (215) 299-1065
>FAX: (215) 299-1079
>
>
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