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F& A Waiver Suzette S. Mauney 04 Dec 1998 08:25 EST

We are a Masters I institution and our funding is under
10.0 million. We are looking for policies that institutions
may have in regard to waiving F&A for service contracts
described below. Please respond directly to me at Thank you for any response!

We handle a number of service contracts with various state
and local agencies.  Among these service contracts are some
in which various units of the university provide services
to certain social agencies (group homes, foster care,
half-way houses, etc...).  These agencies may be state,
county, or private and may also have policies in effect
which relate to the payment of F&A.  We are seeking to
recover a certain percent, when allowed,  of the contract
amount in the form of F&A.  Recently, faculty members and
academic administrators who provide these services came to
us arguing that it is inappropriate, unethical, and not in
good conscious to apply F&A costs to contracts of this type
and that any F&A charge reduces the dollars that can go
into the social service provided by the university.  The
inclusion of F&A creates a situation where  (1) services
would have to be reduced to offset the inclusion of F&A,
or  (2) the social agencies, who are on the financial edge
anyway, could no longer afford to contract with us.  The
net effect would be that those who need the services the
most, would lose.  We recognize that service is, and always
has been, a distinct portion of our mission.  But, where do
we draw the line?  We do have other faculty members who
provide services of a different nature and F&A is not
really an issue.  Could you provide us with any thoughts or
Suzette S. Mauney
Appalachian State University
Assistant Director, Sponsored Programs