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Federally Funded Grant Programs at Universities Samuela Evans 16 Aug 1994 15:45 EST

I am interested in following up on Alan Schreier's question about charging
administrative fees when indirect costs are not paid.   It is interesting
that so far none of us have any response to this proposal.  We all struggle
with state government sponsors and private non-profit sponsors who do not
pay are approved indirect cost rates.

Related to this issue on non-payment of approved rates is  federally funded
centers and programs located at higher education
>institutions and other non-profits which do not pay indirect costs (or allow
>some fixed amount like 10%) on their competitive grants to other
>universities.  From my discussions with the staffs of such programs, I
>gather that it is either part of the deal for them to get the center or
>program located at their institution..  The center does not insist that
>overhead for its grants recipients also be paid.  However, the institution
>where the center is located may collect  indirect costs.
>
>Clearly, such programs offer federal agencies a way to avoid paying
>allowable indirect costs.  They set up a center at a higher education or
>non-profit institution and then the program writes an RFP saying it does not
>pay indirect costs despite the fact that the source of the funds is federal.
>I can't say that this practice is proliferating as the number of such
>centers I know about has remain pretty constant for the past couple years.
>I am wondering how other research administrators view this practice and deal
>with it when their campuses receive grants with little or no overhead.
>
>
>Samuela Evans
>Research Administration
>University of California
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