Re: allowable cost? Hawk, Patricia 18 May 2004 17:40 EST

Chuck, I share your opinion about the use of the F&A recovery also.
Once the funds are collected from the Federal government, it becomes the
recovery and then becomes institutional funds, not federal funds.

I believe John's referring to the fact that you have to "keep track" of
lobbying expenses as an unallowable cost for F&A rate proposal purposes.
It has to be separately identified in the F&A rate proposal and go into
the "other institutional activity"--where the rest of the unallowable
activities go.  It's unallowable in terms of it being unallowable for
reimbursement as either a direct or an indirect cost--the Federal
government recognizes that colleges and universities do this, but it has
to be identified and then "taken out of the equation."

Also, I believe the percentage of F&A recovery on research resources
only applies to those institutions shown in Exhibit B of OMB Circular
A-21.

Pat

Patricia A. Hawk
Training Specialist, Research Accounting
Oregon State University
306 Kerr Administration Bldg.
Corvallis, OR  97331
(phone) 541-737-5422
(fax) 541-737-2069

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On
Behalf Of Herbert B. Chermside
Sent: Tuesday, May 18, 2004 1:19 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] allowable cost?

I beg to disagree.  Lori was speaking of F&A recovery, not costs going
into
the F&A pools!  F&A RECOVERY is just paying you back for what you
spent.  I'll admit that there is a commitment to spend 5% of F&A
recovery
on research resources, but that still does not make it "federal funds".

Of course if these institutional funds are spent for lobbying, they must
not get into the F&A base!

Chuck

At 03:58 PM 5/18/2004, you wrote:
>No.  A-21 applies to F & A expenditures as well.  It would be
disallowed
>as part of your F & A base.
>
>John Finn
>Compliance Office
>Office of Sponsored Programs
>Univ. of North Carolina - Wilmington
>601 South College Road
>Wilmington, NC 28403-5973
>xxxxxx@uncw.edu
>V. 910-962-7562
>F. 910-962-4011
>
>
>-----Original Message-----
>From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On
Behalf
>Of Lori Messer
>Sent: Tuesday, May 18, 2004 3:53 PM
>To: xxxxxx@HRINET.ORG
>Subject: [RESADM-L] allowable cost?
>
>
>Good Afternoon,
>
>Can one use recovered F & A costs to pay a consultant who will be doing
>what could be defined as lobbying activities?
>
>Thank you,
>
>Lori Messer, MPA, CRA
>Director
>Research & Sponsored Programs
>Wake Forest University
>P.O. Box 7528 Reynolda Station
>Winston-Salem, NC  27109
>(336) 758-5888
>(336) 758-1959 fax
>
>
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Herbert B. Chermside, CRA
Special Asst. to VP-Research
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Voice:  804-827-6036
Fax     804-828-2051
e-mail xxxxxx@vcu.edu

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