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