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\n\tPolicy Number: 12000.001<\/strong>\n<\/p>\n \n\tUnit: Grants and Contracts<\/strong>\n<\/p>\n \n\t1.0 Policy Statement\n<\/p>\n \n\tAll direct costs associated with a federally sponsored program must be determined as allowable, allocable and reasonable. This determination is required to support and validate all claims of both direct cost and Facilities and Administrative (F&A\/Indirect Cost) reimbursements of funds from the federal sponsoring agency.\n<\/p>\n \n\t2.0 Purpose\n<\/p>\n \n\tThis policy is designed to outline the University’s adherence to federal regulations for determining allowability and allocability of cost.\n<\/p>\n \n\t3.0 Definitions\n<\/p>\n \n\t3.1 Allocable Cost – Cost that can be assigned or charged to a particular Federal award when the goods or services involved are chargeable or assignable to that Federal award in accordance with relative benefits received. \n<\/p>\n \n\t3.2 Allowable Cost – Any cost that conforms to the limitations outlined in federal regulations, award guidelines, generally accepted accounting principles and University policies.\n<\/p>\n \n\t3.3 Direct Cost – Any cost that can be specifically identified and\/or associated with a particular sponsored project\/activity relatively easily with a high degree of accuracy. (§200.413)<\/a>\n<\/p>\n \n\t3.4 Facilities and Administrative (F&A\/Indirect Cost) – Costs incurred and shared in support of sponsored programs, in general, but not identifiable with any single project. (§200.414)<\/a>\n<\/p>\n \n\t3.5 Reasonable Cost – Any cost recognized as necessary for the performance of the sponsored project and reflects the action that a prudent person would have taken under the prevailing circumstances at the time of the decision to incur the cost.\n<\/p>\n \n\t3.6 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) – Federal policy and guidance issued by the Office of Management and Budget for the administration of federal grants and awards.\n<\/p>\n \n\t4.0 Additional Information\n<\/p>\n \n\t4.1 Determination of cost allowability, allocability and reasonableness is based upon guidance outlined the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). \n<\/p>\n \n\t \n<\/p>\n