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I have a grant with a subcontract. Does the F&A rate base include or exclude the contract amount when it exceeds $25,000?

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I have a grant with a subcontract. Does the F&A rate base include or exclude the contract amount when it exceeds $25,000?

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The F&A cost policy did not change. F&A costs for all research training awards will be budgeted and reimbursed at 8% of modified total direct costs, exclusive of tuition and fees, expenditures for equipment and subgrants and contracts in excess of $25,000.

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