Word: indirections
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...maelstrom is a set of arcane rules, installed gradually after World War II, that turned the Federal Government into America's primary sponsor of university research. Under these regulations, the government foots the bill for research and many of the overhead costs of doing research. These so-called indirect costs, which are not attached to any single project, include university-wide expenses like administration, libraries, roads, utilities and building maintenance. Every university charges the government a different rate for overhead, based on such considerations as geography, which determines a school's energy and wage costs, and the size...
...rates to certain research-related expenses. Equipment purchases, for instance, are not permitted in the total; neither are subcontracts over $25,000. Thus if a Johns Hopkins professor gets a $100,000 grant to cover his direct costs of research, he may be able to apply his school's indirect-cost rate -- 65% -- to only $60,000 of it, making the tab for overhead $39,000. Consequently, the university would receive a total of $139,000 in government funds...
Jewett said that the College would only take disciplinary action against those hanging offending symbols if someone were to file a charge of harrassment. He added, however, that the flags' effects are so indirect that such a charge would be difficult to substantiate...
Stanford's Byer says that through "very cost-effective" means, the university can claim the indirect costs of research it is entitled and still retain competitiveness for grants. The school received more than $97 million in reimbursements for overhead expenses in fiscal 1990, according to Stanford Comptroller Franklin G. Riddle...
Jeffrey D. Ullman, chair of computer science at Stanford, says the problem is more with the national economy than with indirect cost rates...