This not an uncommon problem.   I have seen this in particular with smaller units of government (i.e. local governments and special districts).

If there were a codified Federal rule that we could push back on sponsors who do this, this could help in our IDC recovery efforts.

Mike

-----Original Message-----
From: Research Administration List on behalf of Terri Fayle
Sent: Fri 6/25/2010 12:14 PM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] Flow Through Dollars and F&A Rates

Friends,

I've been out of the office a few days, and when I get back I have a letter from a state agency that says the following:

"This indirect cost rate is the maximum that our agency is allowed to pay out for projects that are paid for with federal funds as per the enclosed agreement."  The enclosed agreement is the state agency's Indirect Cost Rate Agreement.

My opinion is this is a complete misread of the rate agreement on the part of the state agency.  Their rate agreement with the feds doesn't affect my project with the state agency.  My rate agreement would do that.  Right?????

Should my opinion be different knowing the arrangement with the state agency is a contract and not a subaward?

I do believe that if the state agency PUBLISHED a policy that said they only pay on pass-thru projects an equivalent amount to what they collect from the feds, I'd not argue the point.  I just believe they've taken the wrong stance.

Please straighten me out!!!

Terri
xxxxxx@ucmo.edu

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