September 12, 2007

To: Project Directors and Grant Administrators

From: Harvey W. Spector, Vice President for Finance and Administration

Re: New Indirect Cost and Fringe Benefit Rates

The United States Department of Health and Human Services, through its cognizant audit agency in New York, has recently completed its review of the most recent indirect cost and fringe benefit rate proposal submitted by the College. The outcome of the review was the establishment of new rates as follows:

INDIRECT COSTS

Period                                   Rate               Basis

9/1/07 to 8/31/09                 68.6%            Salaries and Wages

                  (the old rate was 64.0%)

FRINGE BENEFITS

9/1/07 to 8/31/09                36.4%             Salaries and Wages      Full and Part Time Employees

9/1/07 to 8/31/09                  8.6%             Salaries and Wages      Adjunct Teachers and Hourly

                                                                                                      Employees

The new indirect cost rate is to be applied to all grant and contract proposals and committed renewal applications submitted to federal government agencies. The new fringe benefit rates are to be applied to all new grant and contract proposals to federal, city and state agencies, and private sponsors.

The indirect cost rate applicable to grants from foundations will remain at 15% of total direct cost.

With respect to currently effective grants and contracts, the following policy will be applicable:

1. a)      the new indirect cost rate will be charged to all appropriate federal grants and contracts effective September 1, 2007;
2. b)      if the implementation of the new indirect cost rate results in a deficit on your grant, the College will absorb the cost of the additional indirect cost charge;

The Monthly Grant Status reports for September 2007 will reflect, where applicable, a charge for indirect costs at the new rate of 68.6% of salaries. The new rates will be applied in succeeding months until amended, at which time you will be advised.

Questions regarding the implementation of the new rates should be directed to Joel Steele at extension 3379.

Thank you for your cooperation.

cc:        Tom James

            Bill Baldwin

Hank Perkowski

            Joel Steele

Harvey Spector

Vice President for Finance and Administration

Teachers College, Columbia University

212-678-3042