I have a question about the impact of an institution's decision to allow
its Research Foundation to retain all recovered Indirect Costs.  Here's the
context.  My institution's recently incorporated, nonprofit Research
Foundation is about to become operational and the intention is to have the
Foundation be the applicant/recipient for all awards.  The university is a
unit of a state-wide system of public colleges and universities.  The
System has established a formula for determining each institution's share
of the Indirect Costs recovered by its Research Foundation.  My question:
what are the implications for the institution's federally authorized
Indirect Cost Rate if the university chooses to waive its share of the
Indirect Costs - i.e., to let the Foundation keep all of the Indirect Costs
it recovers from external sponsors?  (There are three points of information
that might affect the implications.  First, the university's authorized
rate was negotiated using the "short form"; second, the rate is applied to
a Salaries-and-Wages base; and, third, there is a single rate for all
sponsored programs - including research, instruction, and service awards;
both on campus and off.)

Thanks for your insights.

Howard M. Kaplan, Director
Research Services & Sponsored Programs
Georgia Southern University
P.O. Box 8005, Highway 301 So. Building
Statesboro, GA 30460-8005
Tel. 912-681-5465; FAX. 912-681-0719; e-mail. xxxxxx@gasou.edu