Office of Sponsored Programs - 500.16 - Cost Accounting Standards Exemptions


Office of Sponsored Programs - 500.16 - Cost Accounting Standards


The purpose of this standard is to document Federal and University practices involving Cost Accounting Standards (CAS) exemptions.

Policy Statement

In extremely exceptional circumstances, expenditures generally considered Indirect or Facilities and Administrative (F&A) costs may be treated as Direct Costs under the directives of the University's Cost Accounting Standards Board Disclosure Statement (DS-2) and in compliance with 2 CFR §200.420-475.

The Office of Sponsored Programs (OSP) must grant prior written approval before encumbrances and expenditures may be claimed as direct charges to sponsored project accounts for items consistently reimbursed as F&A costs. Such requests are considered only when overwhelming support is furnished. OSP closely scrutinizes any justification provided to support the direct charging of costs that represent inconsistent treatment from that described in the University DS-2.


If a research program meets the criteria of a "major project" according to 2 CFR §200.413, direct charging of administrative or clerical staff salaries may be appropriate.

Related Requirements

Contact Information

For questions regarding this operating standard and its related procedure, please contact

For questions regarding Pre-Award management or Post-Award administration, please contact the assigned Sponsored Projects Specialist (SPS).

For invoicing, reporting and other financial matters, please contact the assigned Sponsored Projects Accountant. OSP Staff assignments are found in RAMSeS or on the OSP website.


Document History
Date Revision
07/01/2022 Revised to reflect new office name.
05/15/2018 Revised to coincide with the release of the new OSP Website.

The operating standards in the Office of Sponsored Programs Operating Standards & Procedures Manual supersede any OSP operating standards, procedures and appendices previously included in the University Business Manual, a publication of UNC-Chapel Hill’s Division of Finance.

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Article ID: 132321
Thu 4/8/21 9:28 PM
Fri 1/19/24 12:10 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Research-Office of Sponsored Programs
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Vice Chancellor
Next Review
Date on which the next document review is due.
01/19/2025 12:00 AM
Last Review
Date on which the most recent document review was completed.
01/19/2024 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
07/01/2022 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
07/01/2022 12:00 AM
Date on which the original version of this document was first made official.
07/01/2008 12:00 AM