Howie --

We began the process of moving all sponsored projects from the University to our foundation in July 1997.  For us, the IDC follows the grant.  That is, the grants that are still in transition and have not moved to the foundation earn IDC that is given to the university by the sponsor.  The university can do with it what it chooses.  The grants that have made the transition -- which takes a while! -- and are in the foundation have their IDC on deposit with the foundation.

We have had no problems with that particular aspect.  If you want more information, please give me a call.  This has NOT been a simple process.

Kim

Kim Moreland, Director
Contract Negotiations & Research Compliances
The University of Kansas
Center for Research, Inc.
785/864-7431 (phone)
785/864-5049 (fax)
email:  xxxxxx@ukans.edu

>>> "Howard M. Kaplan" <xxxxxx@GSVMS2.CC.GASOU.EDU> 07/22 4:05 PM >>>
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