Policies & Compliance
- Research Conduct
- Combatting Human Trafficking
- Federal Disclosure Requirements
- Research Handbook
- 1. Roles & Responsibilities
- 2. Standards for Conduct of Research
- 3. Overview of Sponsored Projects Administration
- 4. Funding Sources & Opportunities
- 5. Proposal Development
- 6. Budget Development
- 7. Procedures for the Submission of Proposals
- 8. Award Acceptance
- 9. Award Management
- 10. Research Related Regulations, Policies & Procedures
- 11. Other Conduct of Research Issues
- 12. Acronyms & Definitions
- 13. Glossary
- Procedure Library
- Regulations Library
Budget Development
6.1 Cost Accounting Standards
The majority of externally sponsored funding at the University is provided by the federal government. As a recipient of federal awards, the University is required to comply with cost accounting standards established by the Office of Management and Budget (OMB) and codified in the Uniform Guidance (2 CFR Part 200). These standards govern how costs are budgeted, charged, and accounted for on sponsored projects.
The Uniform Guidance subparts most relevant to cost accounting for institutions of higher education include:
- Subpart E - Cost Principles
- Subpart D - Post Federal Award Requirements
- Subpart F - Audit Requirements
To be charged to a federally sponsored project, costs must meet all of the following criteria:
6.1.1 Reasonable
A cost is reasonable if its nature and amount reflect what a prudent person would incur under similar circumstances, considering the purpose of the project, institutional policies, and market conditions.
6.1.2 Allocable
A cost is allocable to a sponsored project if it provides a direct benefit to that project. A cost that benefits more than one project may be allocated proportionally based on the relative benefit received.
6.1.3 Consistent
Costs incurred for the same purpose, in like circumstances, must be treated consistently throughout the University as either direct costs or indirect (F&A) costs, in accordance with institutional policy.
6.1.4 Allowable
A cost is allowable if it complies with the cost principles and any specific limitations or exclusions identified in the Uniform Guidance, sponsor terms and conditions, and University policy.
Examples of costs that are generally unallowable on federal awards include, but are not limited to:
- Alcoholic beverages
- Entertainment expenses
- Administrative and clerical salaries
- Telephone charges, postage, and general office supplies
- Memberships in civic, social, or professional organizations
If a cost is unallowable as a direct expense on a federal award, it is also not allowable as cost sharing or matching.
Non-federal sponsors may apply different cost principles or restrictions. PIs are responsible for carefully reviewing sponsor guidelines and award terms and should consult with Cost Accounting and Analysis or the Office of Sponsored Projects for guidance when questions arise.
