This response is from VCU.

At 09:13 AM 6/9/99 -0500, you wrote:
>Colleagues,
>
>I am interested in learning how public universities handle F&A rates on
>projects funded by state agencies.  My questions are these:
>1.  What rate do you charge on projects supported by state funds (not
>federal flow through), and sponsored by an agency of your own state?

Whatever we can get.  Most refuse to pay any; a couple are now givint 5%.

>2.  What rate do you charge on projects supported by state funds (not
>federal flow through), and sponsored by an agency of another state?

Full F&A -- though we may reduce/waive if they document that, as policy,
they don't pay F&A.

>3.  What rate do you charge on projects supported by federal flow through
>and sponsored by an agency of your own state?

Whatever we can get.  Usually this "flow-through" is really funding to the
state agency for accomplishing something, and then they turn to us because
they cannot do it.  Hence they did not build in any F&A for us.

SOMETIMES, but very seldom, we (i.e., VCU's OSPA) gets into the act when
our faculty are making a joint (i.e., to be subawarded) proposal, and then
we insist on budgeting full freight -- and then usually the state agency
gives it away behind our backs when negotiating with the federal sponsor.

>4. How do you determine the rates charged for each category above?
>

A MAJOR PROBLEM is that the leading state institutios do not get together
at the Presidential level and arrive at a consistent policy.  Thus the
state agencies can whipsaw us by saying "X will not charge F&A!"  Once in a
while aI can get together with my counterparts and all agree, on a specific
program, on a rate we will all adhere to.

In our institution, any forgone F&A is clearly a subsidy to the project.
Further, when we build our budget, we start with costs on one side and
revenues on the other.  The last revenue, the "plug" factor, is student
tuition and fees (fees, now, a stuition has been capped by the Gov, to look
good to the public).  So, in the long run, anything we do for astate agency
at less than full F&A is a subsidy of the state agency which is,
ultimately, paid by the students.  THAT MAKES ME MADD AS @#$%$#@!

>Without specifying institutions or states, I will post a summary of
>responses on each question (including my own institution).  If you prefer to
>respond directly to me rather than the list, please feel free to do so.  If
>you would prefer to have your responses excluded from the summary, please so
>indicate in your response.
>
>Thank you for your input.
>
>Mike
>
>
>Michael J. Warnock, Director
>Sponsored Program Administration
>University of Missouri - Columbia
>310 Jesse Hall
>Columbia, MO  65211
>ph. 573-882-4329       fax 573-884-4078
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-073
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/views/ospa/

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