Hi Kim -

 Thanks for the information.  I am hoping that we will be able to do here
what you are in the process of completing.  I think that your answer is
exactly what I need but - just in case your institution and foundation
follow a different procedure - let me make explicit the detail that
underlies my question.  When we make our Research Foundation the award
recipient, we then "subcontract" the actual effort to the University.  With
other subawards, the University would get its negotiated Indirect Costs.
When the University "waives" its Indirect Costs, are we, in essence,
telling our cognizant agency that we really don't need any F&A support in
order to maintain our research infrastructure?  If your institution has not
run into any attempts by its cognizant agency to reduce the university's
F&A rate, that would remove any of my administration's concerns.
 Thanks again.

Best regards,
Howie

At 04:51 PM 7/22/98 -0500, you wrote:
>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
>