Written by Justo Torres, Director for Contracts and Grants.
Cost Accounting Standards (CAS) are a uniform set of accounting principles issued by the U.S. government through the Cost Accounting Standards Board (CASB), an independent board within the U.S. federal government. Their goal is to achieve uniformity and consistency in the cost accounting practices governing the measurement, assignment and allocation of costs to contracts with the United States.
When you hear the term “cost accounting standards,” you might think of the Controller’s Office and/or the university’s financial statements. While that is not incorrect, there is more to the story.
The uniform guidance defines when cost accounting standards (CAS) apply to contracts and grants. The determination of applicability is based on the volume of federal awards administered at institutions of higher education. As a major research university, CAS applies to NC State.
Cost Accounting Standards
The list below outlines some of the standards that apply to NC State and the topics they cover.
- 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.
- Cost Accounting Standard (CAS) 9905.502 states, “All costs incurred for the same purpose, in like circumstances, are either direct costs only (can be charged to a grant) or indirect costs only (must be paid with unrestricted funds) with respect to final cost objectives.” Uniform Guidance 2 CFR 200 then goes on to list specific costs that the federal government considers to be normally charged indirectly, “Items such as salaries of administrative and clerical staff, office supplies, postage, local telephone costs and memberships”.
Additional Information
For additional information, please refer to the Cost Accounting Standards (CAS) page.