United States Department of Agriculture

Research, Education, and Economics

ARS CSREES ERS NASS

Bulletin

Title:	Reimbursement of Indirect Costs and Tuition Remission on ARS Extramural Agreements

Number:	03-150

Date:	07/21/03	Expiration: 07/20/04

Originating Office:	Extramural Agreements Division, AFM/ARS

This Replaces:	Previous guidance provided in ARS Extramural Agreements Manual 280.0 and Bulletin 99-150 issued February 5, 1999.

Distribution:	ARS Headquarters, Areas, and Locations

1. Background

Extramural Agreements Division (EAD) has reviewed ARS policy prohibiting tuition remission under all types of extramural agreements. This effort was undertaken in response to growing concerns that current policy has become counterproductive to ARS's program interests.

2. Policy

EAD's finding is that the Federal statute (7 U.S.C. 3319) prohibiting tuition remission is applicable, by definition, to Specific Cooperative Agreements (SCA) with State cooperative institutions only. The statute is not applicable to Research Support Agreements, Grants, or SCA's with non-State cooperative institutions. EAD has consulted with the Office of General Counsel on this issue and have been advised that our interpretation of the statute is legally correct.

Therefore, Tuition shall be treated as an allowable cost, subject to negotiation, where reimbursement of such costs are not prohibited by law.

Again, the effect of this policy change is that tuition remission is prohibited only under SCA's with State cooperative institutions. Tuition remission is permitted under SCA's with non-State cooperative institutions, or any other type of extramural agreement with any type of recipient organization, subject to negotiation.

The attached chart (attachment 1) describing indirect cost limitations should be inserted in the manual at Chapter 1200, Exhibit 12-1.3 as a replacement.

Curtis Wilburn

Director

Extramural Agreements Division

Attachment

Attachment 1

LIMITATIONS ON PAYMENT OF INDIRECT COSTS

AND TUITION REMISSION

Type of Agreement
Type of Performing Organization	Cooperative Research Agreements	Grant Agreements	Cost Reimbursable Agreements
State Cooperative Institutions	Indirect Costs/ Tuition Remission are Prohibited(1)	Negotiated Indirect Cost Rate Not to Exceed the Audited Rate of Any Federally Recognized Audit Agency

Tuition Remission is Allowable	Negotiated Indirect Cost Rate Not to Exceed 10 Percent of Total Direct Costs (2)

Tuition Remission is Allowable
Non Profit Organizations Other than State Cooperative Institutions	Negotiated Indirect Cost Rate Not to Exceed 10 Percent of Total Direct Costs (3)

Tuition Remission is Allowable	Negotiated Indirect Cost Rate Not to Exceed the Audited Rate of Any Federally Recognized Audit Agency

Tuition Remission is Allowable
Organizations Other than State Cooperative Institutions and Nonprofit Organizations	Negotiated Indirect Cost Rate Not to Exceed the Audited Rate of Any Federally Recognized Audit Agency

Tuition Remission is Allowable	Negotiated Indirect Cost Rate Not to Exceed the Audited Rate of Any Federally Recognized Audit Agency

Tuition Remission is Allowable

(1) 7 U.S.C. 3319, Restrictions on Treatment of Indirect Costs and Tuition Remission

(2) 7 U.S.C. 3319a, permits USDA to enter into Cost-reimbursable Agreements with State Cooperative Institutions and/or other colleges or universities. No other performing organization type may receive this type of award from USDA

(3) This limitation appears annually in the General Provisions to the USDA Appropriations Act.

Revised 6/20/03