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”.
The Uniform Guidance does allow for exemptions where cost items normally treated as indirect (F&A) costs may be charged directly if certain conditions are met.
Principal Investigators (PIs) who believe circumstances of their federally funded project warrant a CAS exemption that would allow direct charging costs that are normally treated as indirect (F&A) must submit a Cost Accounting Standard (CAS) exemption request through UFIRST.
To comply with the Federal government’s Uniform Guidance, codified at 2 CFR 200, which incorporates the Cost Accounting Standards (CAS) 48 CFR 9905.501, 9905.502, 9905.505, 9905.506, the University of Florida has determined the following costs shall normally be treated as indirect (F&A) or unallowable as a direct charge to a federally sponsored award unless a CAS Exemption is approved.
All University Departments.