Source of Funds


AUI’s activities are generally supported by funding derived from long-term contractual agreements for the operation of Federally-funded research and development centers (FFRDCs) (see 48 CFR 35.017). In addition to funding provided by the FFRDC’s sponsoring agency, a Research Center may derive secondary sources of support from other governmental and non-governmental organizations. The legal form of such support may be through cooperative agreements, contracts, grants, purchase orders, or any other legally binding, written agreement governing the delivery of goods and/or services in exchange for funding. AUI’s policy for obtaining funding from secondary sources of support is contained in Section 7, “Outside Support.”

Financing of Research Center Operations

Research Centers operated for agencies of the U. S. Government are normally financed by cash advances (electronic transfers) received from the U.S. Treasury Department. Cash balances in bank accounts maintained for the operations of Research Centers are maintained at minimum levels consistent with prudent cash management requirements. When permitted by the terms of a contract, the letter of credit method of financing may be used to keep cash advances to a minimum.

Financing of the Corporate Office Operations

Funding of the Corporate Office operations is derived by allocating expenses to the direct cost base of its contractual agreements or other funding arrangements through an indirect cost rate. Funding also comes from a management fee when appropriate.

Indirect Cost Rate

The indirect cost rate is negotiated periodically with the sponsoring agency. Indirect costs are defined in OMB Circular A-122.

Management Fees

The Corporation receives management fee allocations from funding agencies for operating Research Centers as compensation for costs not reimbursed under its indirect cost allocation. Management fees are negotiated periodically with the sponsoring agency.

Donations

As a tax-exempt charitable organization under Sections 501(c) (3) and 509(a) (2) of the Internal Revenue Code, AUI is authorized to accept donations. All donations in excess of $250 shall be acknowledged in writing by an officer of the Corporation. Such acknowledgments will include the following:

  • the date of the contribution;
  • the name and address of the donor;
  • the amount of cash and/or the description of the property donated;
  • a statement as to whether or not AUI provided any goods or services to the donor. If goods or services were provided to the donor, a detailed description and good faith estimate of the value of such goods and services will be provided; and
  • the signature, title of Corporate Officer and date the acknowledgment is signed.

In the event that AUI receives a non-cash donation of more than $5,000, AUI will, upon request of the donor, execute the appropriate portion of an “Appraisal Summary.” Execution of the Appraisal Summary is not required for certain publicly traded stocks.