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indirect costs Martha M. Taylor 04 Nov 1994 12:52 EST

I am always disgusted when someone says, "I am writing a grant" when they
really mean a proposal to obtain a grant.  The one thing that bugs me more,
however, is when people say they are distributing indirect costs back to
anyone.  It is my understanding that, at Auburn, the university general
fund gets all the indirect cost recovery and pays the bills (for the most
part).  The money given to the dean, dept or PI is incentive/reward for
obtaining extramural funds.  They use it to further their programs but that
does not necessarily mean they are spending it for things that are normally
considered an indirect cost.

At Auburn, we have compounded the misunderstanding by calling the accounts
which receive the funds, "ICRE" accounts - meaning Indirect Cost Recovery
accounts.  Our interim Vice President started a process to rename the
accounts and call them program development funds or some other name and
distribute a formal policy/procedure statement explaining exactly what is
going on.  We are still working on that and hope to educate ourselves, the
faculty and staff of the university as to what is really happening.  We can
assure everyone (as I'm sure you can) that the university doesn't have any
extra money floating around.

Our distribution of the "program development/incentive funds" is 60% to the
general fund and 40% split between the Dean, Department and/or Institute or
Center if applicable.  Just the fact that we fill out a "distribution form"
at the time we establish the project account and we physically distribute
the funds as the expenditures are incurred using the distribution formula
is another factor contributing to global misunderstanding about what is
going on.  Two colleges give a portion to the PI from the Dean's share.
All PI's would like some of the dollars but we have not decided what to do
yet.  On one hand, it seems fair to give it to the person who worked the
hardest to earn it.  On the other hand, Barbara Gray made a good argument
for not letting this get out of control.

It is all an education process.  If those who are the experts on indirect
costs use incorrect terminology or explain things incorrectly amongst
themselves, imagine how confused the faculty must be.

I just had another thought!!!!  Maybe I don't know what is going on!!!!!

----------------------------------------------------------
Martha M. Taylor, Acting Director               (205) 844-4438
Contracts and Grants Administration         FAX (205) 844-5953
307 Samford Hall
Auburn University,  AL  36849-5112
xxxxxx@mail.auburn.edu