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094483 1 (1969-04-22)

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           United States General Accounting Office
                   Washington, D.C. 20548


                                  FOR RELEASE ON DELIVERY
                                  Expected at 10:00 a.m. EST
                                  April 22, 1969


                        STATEMENT OF
  ELMER B. STAATS, COMPTROLLER GENERAL OF THE UNITED STATES
                         BEFORE THE
             SUBCOMMITTEE ON GOVERNMENT RESEARCH
  COMMITTEE ON GOVERNMENT OPERATIONS, UNITED STATES SENATE


  Mr. Chairman and Members of the Subcommittee:
      At your request, we appear before you today to present
 information developed by the General Accounting Office in
 its study to assist the legislative and appropriation com-
 mittees in achieving a realistic and uniform formula for
Ejscertaining indirect costs on research grants] based on
sound accounting principles.

                   WHY THE STUDY WAS MADE
      Department of Defense appropriation acts for fiscal
 years 1966 through 1968 provided that any recipient of a
 DoD grant for the conduct of a research project would not
 be paid the entire cost of the project. Recipients of re-
 search grants, therefore, were required to share in the
 costs. Similar cost-sharing requirements were contained in
 appropriation acts of other agencies awarding Federal re-
 search grants.
      The 1969 Department of Defense appropriation bill
 passed by the House of Representatives, and approved by the



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