The Cost Accounting Standards Board (CASB) set forth broad Cost Accounting Standards for Education Institutions. The federal CAS regulations are established in 48 CFR Part 9905 and the Uniform Guidance 2 CFR 200.
- Cost Accounting Standard 9905.501 requires consistency in estimating, accumulating and reporting costs.
- Cost Accounting Standard 9905.502 requires consistency in allocating costs incurred for the same purpose.
- Cost Accounting Standard 9905.505 requires proper treatment of unallowable costs.
- Cost Accounting Standard 9905.506 requires consistency in the accounting periods used for cost accounting.
Adherence to these cost accounting procedures has significant implications for the preparation and approval of budget material for inclusion in proposals to federal sponsors. Recipients of federally funded awards are obligated to ensure that costs are allocated in accordance with federal statute.