under certain conditions. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section F.6.). (2) Office supplies, postage, local telephone costs and memberships are normally treated as indirect. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section F.6.). f. Capital expenditures for general and special-purpose equipment may be charged direct to awards with approval of the awarding agency. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section J.18.). g. Test costs direct charged to Federal awards and indirect costs accumulated in the educational accounting system for adequate accounting of institution’s unallowable costs (A-21 section C.12 and FAR Appendix, 48 CFR section 9905.505). h. Determine that the educational cost accounting period for institution’s accumulating costs on Federal awards and indirect cost pools are consistent with the fiscal year. If not, determine that the institution has met the institution’s criteria for an exception described in A-21, section C.13 and that it has been approved by the cognizant Federal agency (A-21, section C.13 and FAR Appendix, 48 CFR section 9905.506). Allowable Costs Special Requirements Internal Service, Central Service, Pension, or – – Similar Activities or Funds 1. Compliance Requirement Charges made from internal service, central service, pension, or similar activities or funds, must follow the applicable cost principles provided in A-21. 2. Audit Objectives Obtain an understanding of internal control, assess risk, and test internal control as required by OMB Circular A-133 §___.500(c). Determine whether charges made from internal service, central service, pension, or similar activities or funds are in accordance with A-21.
under certain conditions. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section F.6.). (2) Office supplies, postage, local telephone costs and memberships are normally treated as indirect. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section F.6.). f. Capital expenditures for general and special-purpose equipment may be charged direct to awards with approval of the awarding agency. Sample these costs when they have been charged direct to Federal awards to determine consistent treatment for non-Federal awards, instructional activity, or other institutional activity (A-21, section J.18.). g. Test costs direct charged to Federal awards and indirect costs accumulated in the educational institution’s accounting system for adequate accounting of unallowable costs (A-21 section C.12 and FAR Appendix, 48 CFR section 9905.505). h. Determine that the educational institution’s cost accounting period for accumulating costs on Federal awards and indirect cost pools are consistent with the institution’s fiscal year. If not, determine that the institution has met the criteria for an exception described in A-21, section C.13 and that it has been approved by the cognizant Federal agency (A-21, section C.13 and FAR Appendix, 48 CFR section 9905.506). Allowable Costs – Special Requirements – Internal Service, Central Service, Pension, or Similar Activities or Funds 1. Compliance Requirement Charges made from internal service, central service, pension, or similar activities or funds, must follow the applicable cost principles provided in A-21. 2. Audit Objectives Obtain an understanding of internal control, assess risk, and test internal control as required by OMB Circular A-133 §___.500(c). Determine whether charges made from internal service, central service, pension, or similar activities or funds are in accordance with A-21.
pt3.docx