BUDGET NOTE

Indirect cost recovery rates and contributed costs:
As noted in the body of the proposal, participating libraries have agreed to engage in the proposed
preservation activities without recovery of their allowable indirect costs. The indirect costs on
preservation activity waived by the participants totals $224,416. These commitments will not appear in
the budget as "Cost Sharing" and are not included in total project cost, per the pre-existing arrangement
with NEH on cooperative projects.

In addition, Cornell is contributing $39,188 in costs for project administration, and four participants
(Florida, Minnesota, Nebraska and Texas) have made In-kind contributions totaling $59,255 in addition
to waiving indirect cost recovery. These two categories of contributed costs do show up in the project
budget and are included in the total project cost. These commitments, combined with the waived indirect
costs, total $322,859 in cost sharing. Indirect costs waived and other cost shares are outlined in Appendix
H.

As project sponsor Cornell University requests recovery of indirect costs for project administration.
Indirect costs on project administration do appear in the project budget and are included in the total
project cost.