There could be a problem using Indirect Cost Recovery funds for audit dis-allowances. First of all your PIs would object to the recovery of these funds being used for a problem not caused by them.  Secondly these funds should be used for the purpose of the expense such as facilities and admin reimbursement.  The indirect recovery should be used for positive purposes and in support of research.  Audit dis-allowances should be funded by the operating fund similar to an allowance for bad debt reserve.

Charlie Tardivo, Principal,     RACS LLC
Research Administration Consulting Services    LLC
1092 Homewood Dr        Suite 300
Lakewood OH  44107
tel# 216-403-8176.........fax# 216-221-8066
web site -----   racsconsulting.co

Why choose RACS LLC?   Years of leadership in providing grants management,     cost recovery and regulatory compliance. We are professional Research Administrators. Our hands-on research     administration experience is far and away greater than other firms.  Compare the experiences and you will     realize that the only choice in consulting firms is RACS LLC. We offer Interim leadership in Research Administration and assessments of your research organization structure and processes. Our experiences and our very competitive rates are very pleasing to our clients. Choose a firm that will work for you not a firm that you work for.  Don't delay any longer. Contact Charlie Tardivo founder of RACS LLC with over 35 years of hands on experience in all phases of research administration.

--- On Tue, 2/19/13, Calvery, Kim <xxxxxx@OREGONSTATE.EDU> wrote:

> From: Calvery, Kim <xxxxxx@OREGONSTATE.EDU>
> Subject: [RESADM-L] IC Recovery allocation
> To: xxxxxx@lists.healthresearch.org
> Date: Tuesday, February 19, 2013, 2:10 PM
>
>
>
>
>
> Re: [RESADM-L] flexibility with nonfederal
> funds
>
>
>
>
> Quick poll
> please.
>   
> What percentage, if
> any, does your institution allocate from indirect cost
> recovery to fund potential audit disallowances?
>   
> If you do allocate,
> is there a maximum fund balance you maintain?
>   
> Thanks!
>   
> Kim
>   
>
> ***********************************************************
>
>
> Kim
> Calvery
>
>
> Assistant Director
> Business Affairs/
>
>
> Office
> of Post Award Administration
>
>
> Oregon
> State University
>
>
> PO Box
> 1086
>
>
> Corvallis, OR
> 97339-1086              
>
>
> Phone
> 541 737-2198
>
>
> fax 541
> 737-2069
>
>
>
> ***********************************************************
>
>
>   
>
>
>
>
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