Recently we received a letter from an NCI prime recipient (a
foundation supporting multi-center clinical trials) from whom
we are a subrecipient.  A letter from the prime states that they have
"determined that the funds which will be subcontracted to your
institution from the Grant and processed by the Foundation to support
your activities will allow no more than a 20% indirect cost allocation
to your institution."

Our negotiated rate is 46%, which we apply to federally funded
research projects.

Has anyone else had this situation occur?  How was it handled?  Did
you accept the lower rate?  How does this jive with A-21?  Can we
accept the lower rate for federal funds?
_________________________
Nancy Borders, M.B.A.           VOICE:  (419) 381-4252
Director, Grants Management     FAX:  (419) 381-4262
Medical College of Ohio         e-mail: xxxxxx@VORTEX.MCO.EDU
3000 Arlington Ave.
Toledo, OH  43699