*** Reply to note of 03/10/97 17:31

You can change your indirect cost rate when you decide to do so. It must be
prospective unless you want to renegotiate an already existing rate - this
part of DHHS's advice is correct. But be deliberate when you decide to do so.
There are issues such as write off of existing equipment, write off of
unrecovered balances, etc. These write offs can be significant.It is not
necessary for you to jump immediately to the $5K level. You can increase
incrementally or partially depending upon how your numbers crunch out

Norman A. Meeks_________________Voice: 507-266-4884
Mayo Foundation_________________Fax:   507-284-1772
200 First Street SW_____________OV:    MRB5535
Rochester MN 55905______________email: xxxxxx@mayo.edu