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PREPARED STATEMENT OF Don I. Phillips 

 Executive Director, GUIR Roundtable 

 National Academy of Sciences 

 Page 4 



local government; eventually, these expenditures 

 will be partially recovered through indirect cost 

 reimbursement for federally-sponsored research. 

 A little over one-fifth of funas are provided by 

 institutional sources, such as tuition and 

 endowment income; while these expenditures are 

 eligible for indirect cost reimbursement only a 

 portion are recovered. 



Just over 10 percent of the funds come from 

 private gifts or donations to institutions; these 

 expenditures are also eligible for reimbursement 

 as indirect costs but again are only partially 

 recovered . 



About 20 percent of the spending on research 

 facilities is financed by tax exempt bonds; 

 interest and principle payments are eligible for 

 indirect cost reimbursement. 

 Direct funding from the federal government 

 provides about 14 percent of the costs; most of 

 these funds come from targeted congressional 

 appropriations; small amounts come from narrowly 

 defined grant programs and direct charges to 

 grants; federal funds used to finance research 

 facilities cannot be recovered through indirect 

 cost reimbursement. 



