In direct Costs: Getting A i University Bills Paid ing with indirect cost of researche atrthenUniversie tyr.arils e By ROBERT JOHNSTON Last year the University collected about $6 million from research sponsors for indirect costs. The figure will be larger this year. From whom this money is taken and to whom it is given and why is often, to many at this University, a source of con- fusion and misunderstanding. Of the dozen or so persons with whom this reporter has discussed indirect costs, only the upper-echelon administrators directly connected with the indirect-cost system seemed to know how this money was collected, exactly what it was collected for, and what ultimately happened to it. To faculty members, deans, department chairmen and center and institute directors, indirect costs were shrouded in mystery. Only one was able to discuss indirect costs in any knowledgeable wa&, and then using information several years old. Nevertheless, indirect cost reimbursement amounts to $6 mil- lion per year at the University, and all those connected with grant and contract administration must take them into account when research project budgets are made up. The philosophy of indirect costs runs something like this: Only a portion of the University's $137 million budget last year went to pay the direct costs of running this institution, namely faculty salaries and wages. The rest of the money paid for build- ings and maintenance, administration, libraries and other expenses -rangng from the President's salary to lawn mowing on North Campus. Inevitable No matter what the activity, such indirect costs are unavoid- able, whether the direct costs are salaries for teaching or for research. The University's state appropriation is in a lump sum, and pays for both direct and iindirect costs. But the federal government gives the University money for specific purposes through the grant and contract system, and it requires that specific assessments be made for indirect costs. This University-federal government relationship goes back to the post-World War II period, when various agencies, notably the defense department, had problems that they wanted solved and new fields of science they wanted explored. It was to the universi- ties, which had performed well during the war, that they turned. Another reason for federal sponsorship of research soon de- veloped and has since gained in importance. The University's vice- president for research, A. Geoffrey Norman, describes this develop- ment as a "national policy decision to strengthen the scientific and technical capabilities of the nation." That is, more and better training for scientists and engineers was made a goal of national policy. Distribution Device The grant and contract system was worked out as a means of distributing government resources toward attaining these objectives. This, of course, involved money and, predictably, problems devel- oped. Rules and procedures were improvised to meet the problems as they came along. The direct costs of grants and contracts were calculated and budgeted without any trouble. Such direct costs included salaries and wages, travel, equipment, supplies and other expenses involved in the immediate execution of the research project. However, nobody really knew what to do about indirect costs. It was agreed that such costs existed: that there were administra- tive, building, library and maintenances that were caused by the presence of research on a campus. The universities and the govern- ment decided that they needed a simple, efficient way of assess-. ing indirect costs. Both sides agreed that the simplest solution was to take 50 per cent of the amount of money budgeted for a project's salaries and wages and to fix this arbitrarily as the amount which that project should pay for indirect costs. This was deemed much simpler than trying to figure out the "actual" amount of indirect costs, if indeed an "actual" amount could be determined, Arbitrary This method of assessing indirect costs was pulled out of the hat. There was very little study to determine if it was equitable or if it represented an over- or under-payment to the universities for indirect costs. Vice-President for Business and Finance Wilbur K. Pierpont points out that more sophisticated methods have been developed since the postwar period when the 50 per cent concept was the standard. However, the accountants, who produce their figures eight to nine months after the end of each fiscal year, arrive fairly closely to the 50 per cent figure anyway. U.S. Bluebook The first step in refining the methods for determining indirect costs took place in 1947-48, when a "Bluebook" of auditing principles to be used in determining indirect costs was issued, Pierpont was on the national committee which wrote the book, which incorporated many changes in previously used systems. See GOVERNMENT, Page 6 PROBLEMS IN THE HONORS PROGRAM See Editorial Page Sir ~Iait~i CLOUDY Low-23 Snow flurries, windy and warmer Serenty-Four Years of Editorial Freedom VOL. LXXV, No. 138 ANN ARBOR, MICHIGAN, FRIDAY. 12 MARCH 1965 SEVEN CENTSTEPAS Romney's B lue Ribbon Group FPA Overrules Trigon 's Right To Appeal Asks for Flint Postponement Fr~aternity To Ask Second Hearing * * * * * * * * * By JOHN MEREDITH cation in Michigan, will be pre- community colleges as well as ad- The relminry raf ofthesented to the entire committee to- minister state support and capital By LAURENCE MEDOW "ble rbbo" Ctizns ommtte Ho evro a r usual reliable ut cyontains a recommendation The Fraternity Presidents As - an Higher Sducation calls for post-. source predicted yesterday that that the state board work out i sembly last night denied Trigon1 ponement of the University's plans release of the final report will 5-10 year program to aid the new Fraternity the right to appeal to to expand Flint College In the be delayed until April, perhaps as community colleges in making the FPA an earlier decision on fall, the Ann Arbor News report- late as the middle of the month. financial adjustment. Trigon's discrimination case made ed' yesterday. This contrasts with earlier specu- Recommendations in Line by the Interfraternity Council Th daf, ivdd nt svea lation that- the report would be James C. Browning, dean of Port Executive Committee. Trigon's ap- Thedrat, ivied to evealreleased next week, section by sec- Huron Junior College and head oi peal was to have been made at sections, each of which has been tion. the Committee of Community Col- last night's FPA meeting. prepared by a subcommhittee ou~s Cite Recommendations lege Administrators, commentec' Last January 12, the IFC exec- -- In reference to the University'< yesterday that the document's rec- utive committee had found alleg- plans to make Flint a four-year ommendations appeared to be ir ed religious discrimination in Trn- insituioninthe fall, the New' line with the views of state com- gon's membership policies - a article cited several recommenda- munity college officials. violation of IFC bylaws. ~~~~~~~tions in the r epor t that cor res- -Teeeuiecmiterld pond to Gov. Romney's position January 26 that Trigon niust re- Ilu e C ang beheld up until theh stt oardtC R g n snxuetme r fches of Education reviews the project. j-e ble expulsion from IFC. By ALICE BLOCH University Executive Vice-Pres I Uf ~ iel The motion to deny the ap- peal was introduced and passed Sorority housemothers last night detMri iusdcie 7 in response to Trigon's request voiced their questions and com- comment yesterday on this an or a u acyfor a postponement of the hear- plaints about the "parallel pniv- threcm ndtnsmentione' ing. Executive officers felt post- ileges" given to junior sorority in th arce, preferrin to waity OER ENE ponement would be a "great in- women by the Office of Student uni th eoti fiilyr- B OETBNJLW convenience to all concerned in Affairs Wednesday. leased in its final form. An emergency meeting of the the IFC and the FPA" and asked Addressing their remarks to a According to the News, the re University of California regents is that the appeal be denied. panel of eight Joint Judiciary port contains no specific finan planned for tomorrow to discuss A W w iiOmor to hear an appeal Council mnembers at an "All-Cam- cial recommendations for this na the issues of student discipline from Trigon may, however, be in- pus Judiciary Conference," the or the future. However, it does and the resignations of President troduced at the next meeting of housemothers questioned thie ad- recommend that the state boar( Clark Kerr and Berkeley Chancel- FPA, Richard Hoppe, '66, IFC visability and practicality of the "stand above the autonomour bor Martin Meyerson. presi~ent, said. new University rules. The regula- boards which control individua' The resignations followed a "In suite of the motion passed tions state junior women with tax-supported colleges and uni- "filthy speech movement" on the by FPA denying Trigon's appeal parental permission will be free versities." IBerkeley campus. I n f o r m e d of the previous executive commit- to leave and enter "their places Needs Expansion sources said Kerr and Meyerson tee decision of guilty, it is under- of residence" at all hours starting It further states that medica& were pressured by several regents stood that the question of an ap- next fall, schools at the University and to take immediate disciplinary peal can be grought before FPA Wayne State University should be action - against the students in- at a later date. With this in mind', The main problem the house- expanded before a third medical volved. Kerr had said the matter mothers and JJC members foresaw school is established in Michigan would go through regular chan- OR E TO was that of security. While Uni- -a position in line with the con- nels.CO E TO versity residence halls employ clusions of an earlier renort on' The campus is still mindful of Contrary to a story in yester- "night assistants" to open and the medical school controversy, the vast student demonstrations day's Daily, the University did tieslc dono. Terforsengeshose- The preliminary draft, accord- which swept across it in the fall. not receive an increase of 10 mothers expressed fear that care- ing to the News, goes on to ca1' Kerr saidthe did not take harsh per cent over las yar in th less sorority members would leave MSU's plans for a two-year med aton inth reetcen or hdern nmerfdsa applicants.per open or forget to re-lock the doors ical program in conflict with th travodreiionfnscdmo- nted appliatiyon.hs ran 2 e aftr losngthe. b cesexpesed te erle Strong Discipline was 10 per cent ahead of what .No Definite Suggestions The News states the draft on- The regents, however, seem in the admissions office had pre- Although JJC members and the poses creation of additional bran"' favor of strong discipline and are dicted. ..-z.~ ni ~ ~ . - ex..pecptedl to name a ma n s- Residence0 Halls Sees Possible Fee REV. REEB DIES-: PledgeFedera Ai nem By The Associated Press WASHINGTON - Atty. Gen. Nicholas Katzenbach yesterday pledged swift federal prosecution of Alabama police officers respon- sible for last Sunday's violence against marching Negroes in Sel- ma, Ala. Katzenbach told a news confer- ence there is no question that ,ederal 'law has bee n violated there. In Birmingham, Rev. Janmes J. Reeb of Boston, who was beaten by white men while participating in a civil rights demonstration in Selma Tuesday night, died of a fractured skull. Earlier in the day, Selma police arrested a fourth white man and charged him with the assault. He is Odel Hoggle, a Selma auto me- chanic. He ad the othe thre me wilface federal charges of cn spiracy to violate Rev. Reeb's :ivil rights, as well as murder charges in Alabama. -Associated Press EVENTS IN SELMA, ALA., brought demonstrations across the nation. Above, federal officials forcibly remove protestors from Raie Cutle Cites Food, Manufacturing, Counseding Affect Roomning Char-ges By LESLEY FINKELMAN It appears likely that a raise in residence hall room and board fees will be recommended for the fall semester, according to a state- ment made yesterday by Richard L. Cutler, vice-president for stu- dent affairs after a meeting of the University Residence Halls Board of Oovernors. "No definite rate increase has been decided, but it looks as if there will be one. We don't know how much the fee will be in- creased because many aspects of dormitory living have yet to be investigated," Cutler said. The Board of Governors, ~n agreement with Cutler's statement tioning residenc hall sye m isn necessary," discussed in passing several topics which may affect dormitory fees this fall. Among them were the University debt service requirement, the rising cost of livig and the increase in wages for services, maintenance and counseling. SShip Must Float "Because our 'ship' must float, each student must pay a small portion of the University's debt requirements for residence halls as he pays for room and board," Director of Residence Halls Eu- gene Haun said. "We also must pay our help and the cost of more expensive food," he added. Based on a report made in No- vember by Wilbur K. Pierpont University vice-president for busi- ness and finance, Haun said an increase in the minimum wage would very likely result in in- creased fees from students in resi- dence halls so the University can pay its student employes. tha wages sould not be lowee in dormitories, because students deserve good wages for the hard work- such as bussing tables - The board considered some pos- sible modifications in the resi- dence hall system to save money, but it has not decided definitely to implement them. Maid Service One suggestion was to dispense with maid service in rooms. Haun expressed concern about whether the rooms cOuld ' be maintained without it. reIncreasing cost offood is also Cutler sair "For indtnenap e An' estimated 450 Negroes, led by an area used by mail trucks outside Los Angeles' Federal Bldg. a Cincinnati minister, had main- Students staged a lengthy demonstration there yesterday. Bimngham before his death was James Farmer, national direc- in Selma. Ann Arbor CORE will annuncd. tor of the Congress of Racial be arranging bus trips for anyone Thnue deosrtinsele f-Equality, has issued a call to all who wants to make the trip. :).te 2U sLtdents atten~inglI the conference had no definite sug- gestions for the improvement of security measures, JCC stressed colleges to meet the need to ex pand higher education facilities ir ;Michigan. Instead, the reoort oro poses the state be "blocked out the freedom of each house to im- ;into 29 community college districte plement University regulations. 'with establishment of 26 new com- Also, the housemothers feared munity colleges in the districts." many parents who sign the per- Recommend as Site mission slip would never see the Ann Arbor is among the citie' GSA letter explaining the new recommended as the site of a regulations. new community college, the NewF JJC members said more copies ,article states. Each community of the letter would be made avail- college would be independent ir able and the individual houses respect to "governing board, fac- should make rules enabling the ulty budget, buildings and salar- housemothers to keep track of ies." juniors and seniors. A suggested. The preliminary draft reported- solution was to require all wom- ly emphasizes that the state board en leaving the houses after closing should act to coordinate the pro- to sign out. grams and campuses among the KICKS OFF FILM FESTIVAL: By MICHAEL JULIAR Filmmaker Gregory Markopoulos ,last night brushed aside the fact that he did not have a prepared speech, tried to ignore a small element in the audience that annoyingly laughed at some of his comments and delivered several remarks to kick off the third Ann Arbor Film Festival. Attempting to elucidate some of the characterics of the contem- porary American filmmaking scene for the audience at the Archi- tecture Aud., Markopoubos emphatically declai'ed that "all the arts are quite dead, except the film." siblyforme Chanello Edmud Triori ill dfinitly coside re- rORee's dathtwssannunce.rCOR chapers semarnteon Thoseinteestedin ngong t Strong ow on eavce, or dudT will dei nipely fronmd FrA- Mry ofe tse resentbsgano d Washington Monday unless Presi- Washington should call the local Ston, o o laewh ilqTrwng Prsn David Hall, '6," sin freom shos. prsn ea dent Johnson takes strong action CORE office at 663-3475, tak effective action. Such action TinPrsdnDadHa,'6,sg rdmsng. - ---- - --- ---- - About as many church workers might, however, "lead to mass said resignations of the faculty," Jesse Trigon's reasons for requesting -u See WASHINGTON, Page 3 M. Unruh, a member of the board a postponement were 1) that all 11 I-~S ~iilV of regents, warned, the representatives presenting Trn.- port is seen as being directly be- last right because of insufficier' hind Kerr and Meyerson. The notice of the date and 2) that S campuses of the California cam- changed officers and created con- By JULIE FITZGERALD pus complex have urged Kerr to flicts in presenting the case. reconsider his resignation. IIFC contended that the responi- Democratic condidate for mayor Mrs. Eunice Burns said last Berkeley faculty and students, sibijity for setting the date resisnghtheminaadpyhoogalbtatyfdicmntin meanwhile, have termed Meyerson with tlm' executive committee, that igh the Aroionals and pe shogyical brutality tisriinpaon a "popular, fair and effective Trion had sufcin notice of the inAnAbri uta ela h hsclbuaiytkn lc chancellor" and have expressed date and that the responsibiliev in Selma, Ala. their desire to have him remain for bemng prepared rests with Tri- Speaking at a coffee hour, she said she had participated in as chancellor. jon. Wednesday's peace march in Ann Arbor to protest the brutality - - - ---=-in Selma. Mrs. Burns added the Abor is mnore subte than in the South and perhaps for this reason & the need for anti-discriminatory C~ At s Dead, xcept Film' measures is harder to get across. "The Democrats on city coun- CR' AE AMR cil are trying to extend coverage COESJMSFRE menits. So I went up to the front of the room and addressed the people of the Fair Housing Ordinance there, telling them what the 'new' movies were about." and simultaneously would like to To P c e o Films Old-Fashioned start an educational program to Later, Markopoulos said "films are still being made in very old-~ change people's attitudes,"' she 6 IVa9e k fashioned ways, but there are now new ways." He felt these "new commented. , ways" are best in evidence in such films as Stanley Brackhage's want torn dodsomthn posite "Flaming Creatures" (which, by mutual agreement between the rather than just state plattues. The University of Michigan Stu- filmmaker and the city of New York, cannot be publicly shown be- As mayor she would pledge her- dent Employes Union will picket cause it is considered "obscene" by the city for its showing of the self to this sort of program, she the Administration Bldg. at 3 sexual organs), Brackhage's four and one-hour production entitled said. "The Art of Vision" and Markopoulos' own award winning film,'I Also speaking was Mrs. Phylis O'clock today to demand a $125 minimum wage for student work-