COST ACCOUNTING STANDARDS FOR EDUCATIONAL INSTITUTIONS (CAS)

CAS 501

• Consistency in Estimating, Accumulating, and Reporting Costs by Educational Institutions
• Practices for estimating costs must be consistent with those practices used in accumulating and reporting costs during contract performance
• Should be able to compare proposal estimate with actual costs for any “significant” cost

CAS 502

• Consistency in Allocating Costs Incurred for same Purpose by Educational Institutions
• Each type of cost must be allocated once and on only one basis to any contract or other cost objective
• If a contract is charged directly for a cost, the same type of costs should not be in the indirect cost rate, and vice versa
• Same principle as OMB Circular A-21, Section F.6.b. – but requires more detailed documentation as well as certification by CFO

CAS 505

• Accounting for Unallowable Costs
• Does not provide additional guidance on what is unallowable – schools will still follow A-21
• Visibility requirement – Detailed records should establish and maintain visibility of identified unallowables, including allocation and cost accounting treatments

CAS 506

• Cost Accounting Period
• Institutions must use fiscal year as its cost accounting period
• Can use a different period only with prior government approval
• Potential area of concern could be the costing of service centers based on prior year costing data