With regards to the IDC base, once you are working with a non-federal sponsor, unless that sponsor's specifically says that the IDC base will be the base from your federally-negotiated F&A rate agreement, it would seem that the base would be whatever the sponsor defines it as.

That said, I've found that a lot of non-profits have not thought through the complexities of an IDC base - many times you are in the position of defining it for them.   If needed, talk to them, and have them define the correct base to be used.

In the absence of additional guidance from the sponsor, so long as the sponsor is asserting that a rate to be applied to some type of base (rather than a total cost formulation), I would apply the rate to the Total Direct Costs.  Recovery on subawards, as a line item on your direct cost budget, would only be limited (similar to the $25K rule with federal F&A rate agreements) if the sponsor specifically defines a limit...or if you have some institutional rules that come into play.

Mike

Michael Joseph Kusiak
Research Policy Analyst
University of California, Office of the President
Email: xxxxxx@ucop.edu
Phone: 510-987-0659

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Hearns, Rene
Sent: Tuesday, July 31, 2012 5:44 AM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] indirect and subaward question

Hi Angela,

I believe you would either have to subcontract with the institution or set up a consultant PO with the teacher.  Your indirects depends on the rate.  If you are using Salaries and Wages, neither method would enable you to collect indirects.  If you are Modified Total Direct Costs, then it would be collected on either method.

To me it is not appropriate to "hire" the teachers and place them on your payroll.  But that is determined by state law and institutional policy.

Cheers,
Rene

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Angela Carron
Sent: Monday, July 30, 2012 3:22 PM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] indirect and subaward question

One of our University faculty members submitted a proposal that would be submitted to a private foundation and I have a couple questions that I'm hoping someone can assit with.  Our faculty member would be the PI on the grant.

Part of the proposal covers the cost of work performed by eight high school teachers, from multiple high schools.  These teachers would be developing and creating curriculum that is integral to the completion of this proposed project.  The cost for each teacher's work is budgeted at a payroll cost of $15,000.

1)  Would you create subaward agreements with the institutions where these teachers normally work? or Would you pay these teachers through your own payroll system for the work performed on the project?

2)  Provided indirect cost recovery is allowed by the awarding agency, can we recover indirect costs on the payroll costs of these high school teachers just like we normally would with own employees?

Thank you,

Angela Carron
Truman State University
xxxxxx@truman.edu
660-785-4157

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