Except that the new rules remove the subawards indirect costs when calculating to see if the prime's budget is within the restricted amount.  Even though the total costs of the subawardees is part of the direct cost to the prime, the subawardee's indirects are not counted when calculating the costs to ensure compliance with the limited amount; in this case the $300,000.  I think the warnings are just system generated and should be ignored.

Matthew D. Katz, MHA
Assistant Vice President,
Sponsored Research and Contract Management
Western University of Health Sciences
309 E. 2nd Street
Pomona, CA  91766
(909) 469-5567
(909) 469-5569 FAX

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Myra Norman
Sent: Monday, October 26, 2009 2:30 PM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] AREA Proposals

Are not subawards with both direct and indirect costs considered direct
costs to the prime grant?  The prime will be paying the subawardee which
will show up in your accounting system as a direct cost.  My guess is
this is why you are getting a warning that you are over the $300,000
cost limit.

--
Myra Norman, PhD
Director, Research & Sponsored Programs
P.O. Box 124
Middle Tennessee State University
Murfreesboro, TN  37132
Tel:  (615) 898-5005
Fax:  (615) 898-5028
xxxxxx@mtsu.edu

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