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The Library Development Study draft recommends reducing or eliminating "indirect 
costs" as one way to provide more money for System programs.  (See 
http://www.libraryconsultant.com/TexasLDDraft.htm, Recommendation #2.)

In case you were wondering, "indirect costs" are what a grantee pays to administer 
certain aspects of a grant.  Bookkeeping and audit costs are typical indirect costs, 
along with staff time to oversee the grant and to make reports to the granting agency.

Some granting agencies -- such as TIF -- don't allow indirect costs to be charged to 
the grant.  However, the cities which are the grantees for 9 of the Systems are 
allowed by the State Library to charge for indirect costs.  

The 9 cities have different ways of calculating their costs, and the indirect rate as 
a percentage of the total grant varies from 2.84% in Houston to 16.27% in Abilene.  
I've posted a table for all 10 Systems at http://www.ctls.net/IndirectCosts.htm

Austin's actual indirect rate as a percentage of the total grant is 14.1%.  But 
because the other city-hosted Systems don't charge rent to the grant, rent is included 
to indicate Austin's comparable rate of 22.44% of the total grant.

NTRLS, the 10th System, is operated by a non-profit which doesn't charge indirect 
cost, but does include some costs -- such as rent, bookkeeping, and auditing -- as 
part of the grant.  These costs are included in the rate shown in the table of 12.24% 
of the total grant.

Bob Gaines



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