The University permits the equivalent of 2 months of annual operating expense (calculated based on prior fiscal year) to be retained as “Working Capital” by a Fee-for-Service Educational Activity (FSEA).
All Fee-for-Service Educational Activities (FSEA), no matter the size, are subject to the cost principles set forth in the U.S. Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 C.F.R. §200 Subpart E §200.468 (“Uniform Guidance”).
Units must go through a rate development process to ensure an accurate composition of allowable costs on a cost recovery basis. Although units may vary in size, complexity, and services provided by the units, they are required to follow common administrative practices.
All fee-for-service educational activities.