Hello folks,

I am working on a budget to be submitted to the U.S. Department of
Education (the program is the Personnel Preparation to Improve Services
and Results for Children with Disabilities).  The guidelines state that
we are to use 8% of total direct costs, minus student trainee costs, as
the IDC rate.

Here is the tricky bit:  our budget includes a subcontract to another
university to the tune of $140,000, $74,000 of which is going toward
student trainees.  I've hunted in the OMB and EDGAR documents, and
haven't found an answer to the following question:  Should I charge the
8% rate -- A) on the first $25,000 of the subcontract, B) on the total
subcontract amount, or C) on the $66,000 that does not involve student
costs? (or maybe there's an answer D) Other, that I haven't
considered...)

I appreciate your sharing your expertise with me, so I can do this
correctly!

Sincerely,

Victoria Jensen
Associate Director
Office of Research and Sponsored Programs
California State University, Hayward