Re: Subcontractor Costs Rhodes, Kris E 22 Sep 2004 17:14 EST
You should treat the entire cost of the subcontract as a direct cost in your institution's budget. You will only charge F&A on the first $25,000 of the subcontract. Here are two examples that may make it clearer -
If the subcontract is $12,000 direct cost and $6,000 in indirect the total cost in year one for budget purposes is $18,000. You will apply your F&A to entire $18,000.
If the subaward is the same in year two, you should only charge F&A on $7,000.
I assume you are with a non-profit the referenced for the subaward cap on F&A recovery is addressed in A-122 D.3.f under the Multiple Allocation Method for distributing F&A discussion. The key is that the circular does not reference just direct cost as the base for distributing, it states the first $25,000 of the subaward.
Office of Sponsored Projects Administration
University of Kentucky
From: Research Administration List on behalf of Doyle-Wandell, Greg
Sent: Wed 9/22/2004 5:15 PM
Subject: [RESADM-L] Subcontractor Costs
I'm working on a R01 application and need some help answering a question
about how to treat subcontractor's F&A. The question is: do I treat the
subcontractor's total expenses (direct and F&A) as my direct expense, or
just their direct costs?
Director of Sponsored Programs
J. Craig Venter Institute, Inc.
9704 Medical Center Drive, 4th Floor
Rockville, Maryland 20850
Phone: (240) 268-2755
Fax: (240) 268-4000
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")