Office of Sponsored Programs - 500.16 - Cost Accounting Standards Exemptions

Title

Office of Sponsored Programs - 500.16 - Cost Accounting Standards

Purpose

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.

Exclusions

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

• Research Administration Glossary at Carolina
• UNC-Chapel Hill Cost Accounting Standards Board, Disclosure Statement (DS-2)
• 2 CFR §200.420-475 - General Provisions for Selected Items of Cost
• 2 CFR §200.413 - Direct Costs

Contact Information

For questions regarding this operating standard and its related procedure, please contact SponsoredPrograms@unc.edu.

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.

History

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.