Cost Accounting Memo

November 20, 1996

To: Deans, Directors, Department Chairs, and MSOs

Subject: Cost Accounting Standards (CAS)

The federal government has recently issued new regulations in Office of Management and Budget (OMB) Circular A-21 concerning the way costs on federally-sponsored research projects must be budgeted, charged, and reported. These new regulations which focus on consistent treatment of costs will have an impact on many of our daily financial activities, including the preparation of proposal budgets, charges on contract and grant awards, the vacation leave accrual systems, and rate and recharge activity. Attached you will find a short summary of the new regulations and the campus' plan to respond to them.

Informational meetings about the CAS requirements and their potential impact on the campus will be held in December. Because the impact on the campus is expected to be broad-based, all departments are asked to send at least one representative to one of these meetings. Appropriate attendance would include the departmental MSO and/or financial or accounting personnel, and in the case of departments with research funding, contract and grant liaisons. Input from these meetings will also be used to help formulate campus policy. These meetings will be held:

In order to determine the degree of current compliance with these new regulations, we request your department complete the attached short survey. Please also designate a CAS Coordinator using the attached form. This will be our contact for future commun ications regarding CAS implementation and training. Please return your departmental survey and the CAS coordinator form to Sandra Schoenfeld in Accounting and Financial Services no later than December 31, 1996.

I look forward to seeing you at one of the informational meetings.

- David N. Sheldon -

For further questions or comments regarding the above information, please contact help@accounting.ucsb.edu.