The Cost Accounting Standards Board (CASB) provides guidelines on cost accounting practices, referred to as Cost Accounting Standards (CAS). University practice may differ from agency policy. CASB imposed these standards for the following reasons:<\/p>\n\n\n\n
NC State abides by the following cost accounting standards:<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n CAS will apply to sponsored awards that meet any one of the following criteria:<\/p>\n\n\n\n Awards not covered under CAS administration are still subject to the requirements listed in the award as well as all university and state guidelines. Just because an award is not under CAS administration does not mean expenditures unrelated to the award can be charged. All expenditures on an award must be reasonable, allocable and allowable.<\/p>\n\n\n\n Awards not covered under CAS administration that are also not \u201cFixed Price\u201d awards (see NC State\u2019s Policies, Rules and Regulations<\/a>) include either audit clauses and\/or financial reporting requirements. These clauses allow for the review of supporting documentation for all expenditures. The supporting documentation should validate the relationship between the expenditure and the purpose of the award.<\/p>\n\n\n\n \n \n\n Institutions and researchers must comply with externally imposed requirements related to the management of research funds. The objectives of good fiscal management are twofold:<\/p>\n\n\n\n Formal cost accounting standards as set forth by the federal government and institutional fiscal policy help set the appropriate fiscal protocols for researchers and the university.<\/p>\n\n\n <\/p>\n <\/details>\n\n\n \n \n\n This is a key component of compliance with federal regulations. Noncompliance may result in financial penalties for NC State and could affect our ability to qualify for federal funds.<\/p>\n\n\n <\/p>\n <\/details>\n\n\n \n \n\n Anyone authorizing the expenditure of federal funds must have a working understanding of the underlying cost principles as set forth in the Uniform Guidance (UG)<\/a>. These principles govern costs that may be charged either directly or indirectly to the government by educational institutions.<\/p>\n\n\n <\/p>\n <\/details>\n\n\n \n \n\n The CASB, an independent legislatively-established board within the executive branch of the federal government, provides guidelines on cost accounting practices, referred to as Cost Accounting Standards (CAS). In 1994, CAS imposed four standards on universities receiving significant awards from federal agencies. In 1996, A-21 was revised to include the four CAS standards and made these standards applicable to all types of federal awards. CASB imposed these standards to:<\/p>\n\n\n\n \n \n\n NC State must comply with the CAS requirements to ensure the recovery of direct and indirect (F&A) costs. As a required element of CAS, NC State University must disclose its cost accounting practices in writing to the federal government. NC State satisfied this requirement with the disclosure statement (DS-2) submitted to the federal government in 1997, with the most recent revision being approved in 2010.<\/p>\n\n\n\n NC State abides by the following cost accounting standards:<\/p>\n\n\n\n For further clarification of the requirements of these standards view Uniform Guidance (UG) \u00a7200.419<\/a>.<\/p>\n\n\n <\/p>\n <\/details>\n\n\n <\/div>\n <\/div>\n\n\n\n \n \n\n The following policies have been clarified due to the implementation of Cost Accounting Standards (CAS) by educational institutions. While many of these policies have been in place for some time, it is important to have comprehensive written policies and procedures which address CAS.<\/p>\n\n\n\n CAS will apply to sponsored awards that meet any one of the following criteria:<\/p>\n\n\n\nCAS Applicability<\/h2>\n\n\n\n
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Key Terms<\/h2>\n\n\n
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Fiscal Management<\/h2>\n <\/summary>\n
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Proper Classification of Costs<\/h2>\n <\/summary>\n
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Uniform Guidance (UG)<\/h2>\n <\/summary>\n
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Cost Accounting Standards Board (CASB)<\/h2>\n <\/summary>\n
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NC State Compliance<\/h2>\n <\/summary>\n
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This standard ensures that practices used to estimate proposal costs are consistent with practices used to record expenditures against funds.<\/li>\n\n\n\n
This standard describes how costs are allocated.<\/li>\n\n\n\n
This standard requires that all unallowable costs be identified and excluded from any billing, claim, or proposal under a federal government award.<\/li>\n\n\n\n
This standard describes the cost accounting period, which for NC State is the fiscal year: July 1 \u2013 June 30.<\/li>\n<\/ul>\n\n\n\nGuidance<\/h2>\n\n\n
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Federal Regulations on Treatment of Costs<\/h2>\n <\/summary>\n