CFFICE MEMORANDUM © STANFORD UNIVERSITY © OFFICE MEMORANDUM e@ STANFORD UNIVERSITY «© OFFICE MEMORANDUM

To

FROM

SUBJECT:

Date: April 15, 1971

J. Lederberg

E, Levinthal oD
Overhead Contribution of ACME to Medical School

For the fifth year of the ACME grant (8/1/70-7/31/71) estimated indirect
charges equal $143,775. Of this amount Medical School retains approximately
41.62/57.00 x $143,775 = $104,980. (Here I have used 1968-69 rates, 15.38%
and 57%, and have assumed proportional changes for 1970/71). The attached
chart gives the basis of this distribution. Plant and operation for

Anatomy /Microbiology/Physiology is charged by the University on a sq. ft.
basis. The remainder of plant and operation are taken care of by the
Medical School by buying services from the hospital on negotiated sq. ft.
basis.

The "cash flow" to the Dean resides in 21.97% D & A, 5.86% (6.51%-.65%)
Depreciation, and 5.75% (8.21%-2.46%) library. This equals 33.58%, or for
1970/71, $84,701. This neglects 1.57% from Student Services which I
haven't analyzed.

 

 

 

Of this amount a maximum of 7% and, in my mind, a probable amount of 4%*
are Dean's office expenses. Using 4% this leaves 29.58% or $74.610/yr,
assuming 1970/71 to be typical. From this we must subtract $20,058 as
Medical School contribution to SCC management. There is no cost-sharing
on the grant. Contributions of faculty to management in dollars is
estimated to be negligible (less than 1 man month).

You are aware that on the "average" grant the Dean receives less than
41.62% (57%-15.38%) of direct salaries due to some grants at Medical
School receiving less than 59%. This is part of the subsidy that ACME
provides other research objectives at the Medical School.

In addition to glass enclosure built with non-university funds, ACME
occupies 2247 net sq. ft. built at a cost of approximately $51,203 with
Medical School funds.

CONCLUSION: We have a reasonable claim on $55,0M/year.

*This amount will be established by Rowland. It is cost of Dean's Office
divided by direct labor base of Medical School grants (i.e., Internal
Medical School G & A).

WNGNVYOWFW FJDddO © ALISHIAINN GYOANVIS @

WNONVYOWAW FJD1ddO © ALISUZAINA GHYOINVLS © WAGNVAOWFIW 3dIddO @ ALISHTAINN GYOINVILS
Rates for 1968-69

 

 

Percent of Points Retained by
Item Direct Salaries the University

General Administration 10.58 9.95
Department Administration 21.97

Plant Operation & Maintenance 7.49 1.65
Library Expense 8.21 2.46
Depreciation & Use of Facilities 6.51 05
Student Sérvices 2.24 67

Total $57.00 15.38