February 23, 1998

TO: Deans, Directors, Department Chairs, and Managers

FROM: Jerry G. Fife, Director, Contracts & Grants

SUBJECT: Review of University Space
 
 

I write to inform you of an initiative that is being undertaken by this office in close coordination with Facilities Planning and Design; planning offices in the schools, where appropriate, such as the School of Medicine Planning Office and KPMG Peat Marwick LLP. KPMG has been retained to assist the University in the preparation of the Federal FY 1997, Facilities and Administrative Cost Proposal (Indirect Cost Proposal). The purpose of this initiative is to insure the accuracy of space coding for the fiscal year ending June 30, 1997. This space data will be used in preparing the

FY 1997 indirect cost proposal.

The indirect cost proposal forms the basis for negotiation of the University’s indirect cost rate. The greatest potential for maintaining or enhancing indirect cost recoveries lies in the University’s space data. The University’s space data drives the allocation of all space related costs in the indirect cost proposal including building use allowance, equipment depreciation, interest expense, and operations and maintenance expenses.

In the near future, representatives from this office will begin a review of space coding which will focus on space that has been coded as or should be coded as organized research. Those units that have research expenditures will be asked to send their representative responsible for space coding to a meeting that will more fully describe this initiative. At this meeting, a packet will be provided that will include information regarding space coding, research expenditures, and effort charged to research. We need assistance in correlating this information in a fashion that will satisfy reviews by Federal Auditors during their review of the indirect cost proposal. Training will be provided in the upcoming meetings. After your representative has reviewed the preliminary information and returned it to this office, interviews will be conducted with the unit representative regarding the space coding.
 
 

It is critical that this information be accurate and that requested target dates for return of information be met. The University has received an extension to submit its F&A Cost Proposal until March 31, 1998. Your cooperation in assisting in this is appreciated.