|
COST ACCOUNTING
STANDARDS
As part of Virginia
Commonwealth University's research mission, the University accepts
grants and contracts from the Federal government. By accepting
these grants and contracts, VCU agrees to abide by the rules governing
the use of these funds. These rules are outlined in the Office of
Management and Budget (OMB) Circular A-21, which includes the Cost
Accounting Standards. For questions related to OMB Circular A-21
or the Cost Accounting Standards, please contact the Office of Grants
and Contracts Accounting.
OMB Circular A-21 is Office of
Management and Budget (OMB) circular of Cost Principles for Educational
Institutions. It establishes principles for determining costs applicable
to grants, contracts, and other agreements with educational
institutions. The principles are designed to provide that the Federal
government bear its fair share of total costs, determined in accordance
with generally accepted accounting principles, except where restricted
or prohibited by law.
OMB Circular A-21 requires educational
institutions to adhere to the following Cost Accounting Standards (CAS):
Consistency in Estimating,
Accumulating and Reporting Costs:
The purpose of this standard is to ensure that each educational
institution’s practices used in estimating costs for a proposal are
consistent with cost accounting practices used by the educational
institution in accumulating and reporting costs.
Consistency in Allocating Costs
Incurred for the Same Purpose:
The purpose of this standard is to require that each type of cost be
allocated only once and on only one basis to any contract or other cost
objective.
Accounting for Unallowable Costs:
The purpose of this standard is to facilitate the negotiation, audit,
administration and settlement of contracts by establishing guidelines
covering:
- Identification of costs specifically
described as unallowable; at the time such costs first become
defined or authoritatively designated as unallowable.
- The cost accounting treatment to be
accorded such identified unallowable costs in order to promote the
consistent application of sound cost accounting principles covering
all incurred costs.
Consistency in Using the Same Cost
Accounting Period: The purpose
of this standard is to provide criteria for the selection of the time
periods to be used as cost accounting periods for contract cost
estimating, accumulating and reporting.
Return to
Top of Page
Return
to Main Index to Post-Award Financial Administration Guidelines
|