University of Florida word mark

Cost Principles

The Uniform Guidance, codified at 2 CFR 200, issued by the Office of Management and Budget (OMB) includes revised cost principles for federal awards made on or after December 26, 2014.

Subpart E sets forth the standards that an allowable cost must be necessary reasonable, and allocable for the performance of the project or activity being supported by the federal award, subject to any special terms and conditions.

The University of Florida’s Cost Principles Policy and the Cost Principles Directives and Procedures are found at Finance and Accounting’s Department of Cost Analysis.

The University of Florida also requires Mandatory Training in Cost Principles (Course RSH260 for staff & RSH500 for faculty) with more information found at Sponsored Programs Training.

Cost Accounting Standards (CAS)

The Uniform Guidance incorporates the Cost Accounting Standards (CAS)  48 CFR  9905.501, 9905.502, 9905.505, 9905.506 which establishes the principles that costs will be consistently treated as a direct or indirect (F&A) costs.

The University of Florida’s CAS Policy is posted at Charging Costs Directly or Indirectly to Federally Funded Sponsored Projects.

CAS Exemptions

Project Managers who believe the circumstances of their project warrant a CAS Exemption that would allow direct charging costs that are normally unallowable or normally treated as F&A (indirect costs) must complete and submit a request via UFIRST with all required documents to UF Research for a final determination of allowability.

CAS and Non-Federal Sponsored Agreements

CAS Exemptions apply to federally funded awards. For non-Federal awards all costs that are reasonable, allocable and necessary for the performance of the project or activity being supported by the non-federal award may be direct charged, subject to any special terms and conditions.