Cost Principles
Budgeting
Award Management
Cost Accounting Standards (CAS) Exemptions
CAS and Non-Federal Awards
Federal regulations in 2 CFR 200 identify the Cost Principles that must be followed when budgeting for and spending on sponsored projects.
All charges to sponsored projects must be reasonable, necessary for the performance of the project, and allocated appropriately to the project(s) that benefits from the charge.
The University of Florida’s Cost Principles Policy and Cost Principles Directives and Procedures incorporate these regulations and are found on the General Counsel’s Regulations page in the Research section.
UF’s directive on Charging Costs Directly or Indirectly to Federally Funded Sponsored Projects covers normal treatment of costs.
Training in Cost Principles is required for key personnel working on sponsored projects and staff supporting research administration (course RSH500 for faculty and course RSH260 for staff).
When budgeting for a sponsored project, ensure the Cost Principles are followed for each cost included in the budget. If a direct cost that is necessary for the performance of the project is typically unallowable or typically treated as an indirect cost, include clear justification as to why the cost is necessary. Review DSP’s budgeting guidance and course RSH203 for more information.
At award stage, charging expenditures to the correct account code is one of the best ways to help ensure compliance with award terms and conditions. UF’s account codes are available with descriptions at:
Account codes that are normally unallowable or are normally treated as indirect costs are blocked on federal awards. If the circumstances of the award warrant direct charging these costs, a CAS Exemption Request must be submitted through UFIRST. If approved, the cost may be charged to the award.
The University only applies the CAS account restrictions 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 award terms and conditions.
Last updated 12/9/24