1 / 9

What Every Departmental Administrator Needs to Know about F&A Proposals

What Every Departmental Administrator Needs to Know about F&A Proposals. Diane Winter, University of Michigan Julie Jarvis, University of Illinois. Overview of Cost Accounting Standards (CAS ) CAS 501 – Consistency in estimating, accumulating and reporting costs

inge
Télécharger la présentation

What Every Departmental Administrator Needs to Know about F&A Proposals

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What Every Departmental Administrator Needs to Know about F&A Proposals Diane Winter, University of Michigan Julie Jarvis, University of Illinois

  2. Overview of Cost Accounting Standards (CAS) • CAS 501 – Consistency in estimating, accumulating and reporting costs • Consistent application of cost accounting practices; comparable transactions treated alike; facilitates reliable proposal budgets; important basis for reliable financial control… • CAS 502 – Consistency in allocating costs incurred for the same purpose • …in like circumstances; each type of cost allocated once and only on one basis; same criteria for all cost objectives; guards against overcharging and double counting… • CAS 505 – Accounting for unallowable costs • Costs expressly unallowable or mutually agreed to be unallowable shall be identified and excluded from any federal billing or claim… • CAS 506 – Cost Accounting Period • Educational institutions should generally use their fiscal year as their cost accounting period; reduces the effect of variations in the flow of costs within each cost accounting period; enhances objectivity, consistency, and verifiability; promotes uniformity and comparability …

  3. FACILITIES AND ADMINISTRATION (F&A) COST CALCULATION DIRECT COST BASES These become the denominator (base) in the rate calculations MODIFIED TOTAL COSTS Depreciation of Building & Equipment Operations & Maintenance(e.g. utilities, janitorial, repairs, security, grounds) Instruction (e.g. Prof. Salaries, TA, Training) Library (e.g. purchase of books & materials, librarian salaries) Organized Research (e.g. R&D costs separately budgeted & accounted for) General & Administrative (e.g. President’s Office, Controller, HR, Payroll, Legal) Student Services Administration (e.g. Admissions, bursar, Registrar, Student Health Other SponsoredProjects (e.g. community service projects, workshops, non- federal drug studies) Departmental Administration (e.g. Academic Dean’s Offices, Dept Chairs, admin & clerical staff, office supplies) Sponsored Project Administration (e.g. Pre-award office, Post-award office) Other Institutional Activities (e.g. athletics, dining halls, dorms, theaters) F&A COST POOLS After cross-allocations – these become the numerator in the rate calculations

  4. Overview of F&A Components Facilities • Utilities • Equipment • Buildings • Debt • Space Administration • Central • Departmental Unallowables F & A Costs = Rate Research Base

  5. Calculation of Research F&A Rate F&ACosts(overhead) = F&A Rate Organized Research Base (includes University Research) Committed Cost Sharing Sponsored project costs Overdrafts Salaries Over the Cap All direct expenses (MTDC) related to Organized Research University-funded competitive awards

  6. Fiscal Year 2012 Rate Schedule - Research

  7. What Every Administrator Needs to Know About F&A Rates & Calculations • F&A are real costs to the institution • To waive IC on grants/contracts is giving money away • It is NOT a tax • Space Survey is the major driver to allocate Facility Costs (uncapped) • Impact of Cost Sharing on the F&A Rate • Allowable vs. Unallowable (2 CFR, Part 220 / OMB Circular A-21, Section J) • Consistency • Optimizing institutional financial structure – object codes, functions • Impact of organization decisions on F&A

  8. What Every Administrator Needs to Know About F&A Rates & Calculations • Dept Admin’s are a valuable institutional resource • Dept Admin’s are key component of internal controls • Dept Admin’s are key part of internal control systems • Help drive institutional standards like separation of duties, integrity, objectivity, consistency • IC is essential to the partnership, strength of compliance and F&A proposal quality • In decentralized environments well structured accounting systems is an element of good IC • Dept Admin’scan positively or negatively impact institutional risk/exposure • Dept Admin’swith F&A knowledge can take federal cost reimbursement to a higher level • Institutions who look for Dept Admin’swith F&A knowledge for key leadership positions have a strategic advantage to institutions who do not

  9. QUESTIONS

More Related