We are now (and have in the past few months) been dealing with the issue of charging of indirect costs on flow through monies from the US Department of Education.  In these cases, public schools are subcontracting portions of the funds to us.  The problem is that we are putting the allowable 8% indirect cost in our budget.  Then, the US Department of Education folks are telling our schools (and us) that we are limited to the indirect cost rates of the schools (which are usually substantially lower).

When questioned, we are told that their interpretation 75.562 EDGAR is that the "recipient" is the school and that we are forced to use their indirect cost rate instead of ours.  We have argued that each participant is a recipient and is, therefore, entitled to charge their own indirect cost rate or 8% (whichever is lower) in accordance with the guidelines.

We have not yet won this argument.  Has anyone else experienced this recently?  If so, were you able to get it resolved (and how)?  Any suggestions on how to have this clarified?  If I am wrong here, please let me know but I can't see how we can be held to another institution's indirect cost rate.

HELP!

Thanks in advance for your time!

Deb

Debbie Newton

Associate Director

Office of Research and Sponsored Programs

600 S College Avenue

Tulsa, OK  74104

Phone: 918-631-2192

Fax: 918-631-2073

xxxxxx@utulsa.edu

Debbie Newton

Associate Director

Office of Research and Sponsored Programs

600 S College Avenue

Tulsa, OK  74104

Phone: 918-631-2192

Fax: 918-631-2073

xxxxxx@utulsa.edu

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