A bill for an act relating to indirect costs charged to state-funded grants, and including applicability provisions.(See SF 2386.)
Impact
If enacted, SSB3074 would significantly affect how state-funded grants are managed and controlled. It mandates that each grant budget separately identifies direct and indirect costs and that grantees maintain proper documentation for a minimum of ten years. A stricter cap on indirect costs can be adopted under specific circumstances, ensuring flexibility while promoting accountability. The bill also addresses the need for departments to rigorously review budgets prior to granting approvals and to monitor expenses throughout the grant period.
Summary
Senate Study Bill 3074 (SSB3074) proposes a regulatory framework to establish a uniform limit on indirect costs associated with state-funded grants. The bill stipulates that the total amount of indirect costs charged must not exceed five percent of the total grant amount. This regulation aims to ensure that public funds are primarily directed towards program services and to enhance transparency and consistency in the administration of grants across various state departments and establishments.
Contention
The bill's introduction has been met with mixed reactions among stakeholders. Proponents argue that limiting indirect costs will lead to more funding being allocated directly to programs rather than administrative overhead, thus enhancing the effectiveness of public spending. Critics, however, may view such caps as overly restrictive, potentially complicating financial planning for entities reliant on state funding, especially in cases where actual indirect costs may exceed the proposed limit due to various unavoidable expenditures.
A bill for an act relating to health-related matters, including health-related professions, certificates of need, and nutrition, and including applicability provisions.(See SF 2367.)
A bill for an act relating to abusive litigation alleging internet site accessibility violations, and including applicability provisions.(See SF 2380.)
A bill for an act relating to matters under the purview of the department of management, and including effective date and applicability provisions.(See SF 2141, SF 2473.)
Federal Grant Accountability ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs). (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the total amount of indirect costs allowable under a federal research award may not exceed the total amount of indirect costs allowable under private research awards. The Office of Management and Budget must determine the average indirect cost rate applicable to private research awards.Additionally, the Government Accountability Office must study and report on (1) the indirect cost rates allowable under federal research awards to IHEs, including awards made by the National Institutes of Health, the National Science Foundation, and other such organizations; and (2) the indirect cost rates allowable under private research awards to IHEs.
No Subsidies for Wealthy Universities ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.The bill establishes the following limits on the indirect costs allowable under federal research awards:for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; andfor all other IHEs, an indirect cost rate of 15%.The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.