Administrative Fee Michael Ludwick 13 Oct 1994 09:14 EST

(I'm putting on my bureaucrat hat)

Having previously worked at a Federal agency I find the idea of the
administrative fee troubling.  In terms of Federal agencies, as I
understand it based on my A-21 training, if a cost is in an
institution's indirect cost pool and goes in to calculating the
indirect cost, the cost cannot be charged as a direct cost.
Otherwise you are double dipping, getting money for a cost directly
and indirectly.  I understand the desire to play both sides of the
street when indirect costs are restricted or not provided in order to
recoup as much as possible for the institution, but it sounds
downright deceitful as well as illegal.

Moreover, I can understand wanting to charge an administrative fee
to foundations that don't allow indirect, but don't you think they
will catch on that the administrative fee is really the indirect in
disguise, and a thin one at that?

What's the solution?  Push harder to justify indirect costs to the
Feds, not go around the regs.

(I'm removing my bureaucrat hat now)

Please comment.  I'd like to hear responses or different
interpretations.

Mike

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 Michael Ludwick                                    / \
 Associate Director of Sponsored Programs ___  __   |o|   __  ___
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