UCD Directives

UC DAVIS: OFFICE OF THE CHANCELLOR
          OFFICE OF THE PROVOST

October 17, 1997

DEANS, DIRECTORS, DEPARTMENT CHAIRS, AND CAMPUS ADMINISTRATIVE OFFICERS

SUBJECT:  Facilities and Administrative Rate Review

All research universities are periodically required to justify and
renegotiate their Facilities and Administrative Rate (commonly known as the
Indirect Cost Rate) with representatives of the Federal government.  UC
Davis's present rate, which was authorized by the Federal government in
1994, expires on June 30, 1998.  The Davis campus has engaged the
accounting and consulting firm of  KPMG Peat Marwick LLP (KPMG) to assist
in preparing appropriate justification for our rate review.

This project represents a significant undertaking and will require the
assistance of various campus departments to identify, gather, and develop
needed campus costing and allocation information.  A Facilities and
Administrative Rate Project Team, consisting of University and KPMG staff,
has been established to perform the required tasks.  Some of the major
tasks to be performed by the Project Team include:

*     Classifying accounts into Office of Management and Budget (OMB) Circular
      A-21 functional categories;
*     Developing campus space-functional usage data; and
*     Reviewing the campus's equipment inventory database.

The Project Team has estimated that the proposal will require approximately
four to five months to complete.  During this time, the Project Team may
request your department to provide assistance in developing the required
information.  I will appreciate your cooperation in providing requested
data in a timely manner.

Questions regarding this project may be directed to Project Team member
George Max, 757-8523, or Special Assistant to the Provost Jerry Hallee,
752-9747.

Sincerely,

Robert D. Grey
Provost and Executive Vice Chancellor

97-135

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