>>It had always been my assumption that using federal grant funds for
>>endowments was specifically disallowed (in addition to the more general
>>provisions regarding income earned from advance payments and such).  Does
>>anyone know if this is true, and if so, where such language appears?
>
> (stuff deleted) ......
>Endowments are accumulated capital assets; hence, contributions are
>basically fund transfers and not a result of an expense.  Federal sponsored
>projects reimburse expenses; not fund transfers.  The only exceptions I am
>aware of are Federal programs that provide for accumulation of endowment
>funds' like the NEH endowment program & the Dept. Education program that
>assists targeted, smaller institutions in becoming financially stable.
>Therefore, the answer seems clear by extension from A-21 & the fact that no
>expense is involved in building an endowment.

How is it, then, that programs like NEH and DOEd circumvent A-21, and might
a similar case be made for special programs under other federal agencies.  I
would guess that programs like NEH and DOEd's endowment programs must have
been specifically legislated.  Does anyone know if that was the case?
____________________________________________________
Randall Legeai (xxxxxx@mailhost.tcs.tulane.edu)
Institutional Program Development & Government/Agency Affairs
Tulane University, 327 Gibson Hall
6823 St. Charles Ave.
New Orleans, Louisiana  USA
(phn) 504/865-5758 ---  (fax) 504/865-5274