Cost Accounting Standards:  The Cost Accounting Standards Board (CASB) set forth broad policies governing sponsored project financial administration.  Four Cost Accounting Standards were added to the Office of Management and Budget (OMB) Circular A-21 on November 8, 1994 and became effective January 9, 1995. These rules were incorporated into A-21 and all awards made on or after July 1, 1996, must follow these requirements.  As a recipient of federal awards, the University of Florida is obligated to comply with numerous rules and regulations promulgated by federal agencies including OMB A-21.

Cost Accounting Standard 501 requires consistency in estimating, accumulating and reporting costs.

Cost Accounting Standard 502 requires consistency in allocating costs incurred for the same purpose.

Cost Accounting Standard 505 requires proper treatment of unallowable costs.

Cost Accounting Standard 506 requires consistency in the accounting periods used for cost accounting.

Cost Accounting Standard (CAS) 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."  A-21 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".