Faculty and administrative concern over the rising indirect cost rates at Cornell University (New York) precipitated this study, focusing on research funding and the expenses not easily identifiable with specific projects. Some of the questions addressed include: what are the costs, who pays for them, and which arrangements, policies, partnerships, and cooperative interactions among the stake holders are effective? A mail survey of the top 100 public and 34 private colleges and universities was undertaken to determine the full cost of a sample project including indirect costs and fringe benefits. The Cornell Institute for Social and Economic Research (CISER) checked responses and coded for analysis. Of the reporting 113 institutions, the average indirect cost rate was 48.4% of the modified total direct cost. The rate of recovery was found to be 24% of the complete research cost. When compared with governmental studies, the actual recovery appears to be about $78 million lower than former government estimates. Underrecovery of direct costs is concluded to be a major problem for universities, with only 35% of respondents having a carry forward provision to recover in future years any underrecovery. It is important that a sound collaborative effort between universities and government agencies be established to deal with this problem. Part 2 of this report contains survey results summary tables. (SM)