BUDGET NOTE


Cornell University appears in the budget and in the proposal in two ways:
1.) as the project sponsor responsible for administering the total project, and
2.) as one of nine institutional participants conducting preservation of state
and local materials.

Indirect cost recovery rates and contributed costs:
As noted in the body of the proposal, eight of the nine participating libraries,
including Cornell University, 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
$420,966. 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 $46,043 in direct costs in project
administration, and three participants (Nebraska, Texas, and Florida) have
made In-kind contributions totaling $80,011 instead of or 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 $547,120 in cost
sharing.

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