Research Administration Office

University of California

C& G Memo 70-08


I-3. Audit Disputes. There have been reports that individual Federal auditors have questioned certain costs included in the University indirect cost rate, contending that they duplicate costs classified as direct. Since the make-up of the indirect cost rate is carefully reviewed and agreed upon annually by the Federal Government, an individual agency, auditor actually is acting beyond the scope of his authority or understanding if he takes exception to elements of the indirect cost rate. If this question should be raised officially, campuses should not dispute the matter with the audit agency or sponsoring agency but instead refer the matter to the Contracts and Grants Division.

Subject Index: 04

Organization Index: U-115