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The Office of
104 Airport Drive Suite 2200, CB 1350
Chapel Hill, NC 27599-1350
Phone: (919) 966-3411
Fax: (919) 962-5011 or (919) 962-3352
Email: resadminosr@unc.edu
RAMSeS Help desk: (919) 843-2594
Download the Cost Accounting Standards Exemption Request form: (MS Word) or (PDF).
MEMORANDUM
FEBRUARY 11, 2003
TO: University Research Administrators/Faculty
Via RASG and Business Managers Lists
FROM: W. Scott Blackwood, Interim Senior Director
Office of Sponsored Research
SUBJECT: University Research Proposals CAS Guidelines—REMINDER
Section II of the University's Cost Accounting Standards (CAS) Board Disclosure Statement (DS-2) specifies that clerical and administrative salaries, memberships, postage, subscriptions, telephone line (local) charges, and office supplies are treated as facilities and administrative (F&A or indirect) costs. Expenditures for these cost categories are generally not charged directly to sponsored projects. Circumstances occasionally arise when these costs have such a specific relationship to the research being performed that treatment as a direct cost may be considered an allowable exception to CAS 502 and the DS-2.
In these exceptional circumstances, the costs in question should be explicit, described in detail, and appropriately supported and justified in proposals and accompanying budgets. The Cost Accounting Standards Exemption Request Prior Approval (CAS Exemption) form is used when requests are made to direct charge costs that are normally treated in the F&A category and are not appropriately detailed and supported in the proposal. Prior approval (in the form of a CAS Exemption or on the proposal) must be granted before submission of personnel and non-personnel encumbrances and expenditures to directly charge sponsored project accounts for items normally reimbursed through F&A receipts.
The Office of Sponsored Research will review any justification provided to support the direct charging of costs that represent inconsistent treatment from that described in the University's DS-2. Approval of such requests is expected to be rare. These requests should be submitted only when overwhelming support can be furnished. Acceptance or rejection of such requests by the Office of Sponsored Research will be based upon information currently available regarding compliance with the Cost Accounting Standards and in accordance with the University's DS-2.
If you have questions regarding the use of the CAS Exemption Form, please contact me at 962-4675.
Download the Cost Accounting Standards Exemption Request form: (MS Word) or (PDF).