A-21 rule of "allocability". If the expense is unrelated its unallowable

Sent from my iPhone

On Jun 18, 2013, at 6:17 PM, "Scott Niles" <xxxxxx@MOREHEADSTATE.EDU<mailto:xxxxxx@MOREHEADSTATE.EDU>> wrote:

Good afternoon folks,
I have a unique (to me, anyway) scenario I'd appreciate some guidance on.

We have an employee who is funded 97% from a federal grant, and 3% from a private source. We were recently told that notification of new funding from the private source would be delayed. The project period for it typically begins July 1, and now it could be August or later.

The director of this employee wants to increase the employee's effort on the federal grant to 100% in order to cover the lost 3%.

Our office thinks we shouldn't do this, but can't seem to point to any rule or regulation related to this.

Any feedback/advice is much appreciated!

Thanks,
Scott

Scott Niles, MA, CRA
Grants and Contracts Administrator
Office of Research and Sponsored Programs
Morehead State University
901 Ginger Hall
Morehead, KY 40351
Phone: 606-783-2278
Fax: 606-783-2130
Web site: http://www.moreheadstate.edu/research
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