I don't know the particulars of your state's laws and policies regarding
grants administration. Texas uses Uniform Grants Management Standards.

Is there a pass through of federal dollars through the state agency?

If it is strictly state dollars, it seems that your state and funding agency
policies will determine the answer to your question.

Again, without knowing your state laws, it seems that if your funding agency
does not allow indirect costs, then you would not be able to use any of
those dollars for indirect (be it for you, your sub-awardees, or your
contractors). (Of course you would be free to use other funds to pay these
costs if you want to -- I assume that you don't want to.)

You refer to this private party as a sub-award. I wonder - were they listed
on your proposal to the agency and was their budget included in the proposal
(and did this budget include indirect costs)?

Does your state agency consider them to be a sub-awardee, or might they
really be a vendor or contractor. If the later, then a different set of
rules would apply.

Your best bet at this point might be to take the proposal and budget
(including their indirect charges) from your 'sub-awardee' to your funder
for a determination on whether you can be reimbursed for these costs from
their agency. If they say yes (and you believe them) --no problem. If they
say no, then you have the answer you need. The funding agency most likely
would be able to point to an agency rule, policy, or state law to back up
their statement.

Mike Mastrangelo
Center for Sustainable Development
University of Texas at Austin

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of
Linda Manley
Sent: Monday, February 19, 2007 7:41 AM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] indirect costs on a subaward

Sorry, not enough information was given. The original grant that we are a
subcontract on is from the state. That particular type of funding does not
allow for indirect. Our subaward is with a private agency. Given this
information that it is not federal dollars, can we allow the private
agency's budget to have indirect built in?

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