Institutions should disclose what costs are, or will be, charged directly to Federally sponsored agreements or similar cost objectives as Direct Costs. It is expected that the disclosed cost accounting practice (as defined at 48 CFR 9903.302-1) for classifying costs either as direct costs or indirect costs will be consistently applied to all costs incurred by the reporting unit.

Item
No.                                                                                                     Item Description

2.1.0     Criteria for Determining How Costs are Charged to Federally Sponsored Agreement or Similar Cost Objectives.(For all major categories of cost under each major function or activity such as instruction, organized research, other sponsored activities and other institutional activities, describe on a continuation sheet, your criteria for determining when costs incurred for the same purpose, in like circumstances, are treated either as direct costs only or as indirect costs only with respect to final costs objectives. Particular emphasis should be placed on items of cost that may be treated as either direct or indirect costs (e.g., Supplies, Materials, Salaries and Wages, Fringe Benefits, etc.) depending upon the purpose of the activity involved. Separate explanations on the criteria governing each direct cost category identified in this Part II are required. Also, list and explain if there are any deviations from the specified criteria.)

1/ Continuation Sheet.
 

2.2.0     Description of Direct Materials. All materials and supplies directly identified with Federally sponsored agreements or similar cost objectives. (Describe on a continuation sheet the principal classes of materials which are charged as direct materials and supplies.)

1/ Continuation Sheet.
 

2.3.0     Method of Charging Direct Materials and Supplies. (Mark the appropriate line(s) and if more than one is marked, explain on a continuation sheet.)
 

2.3.1     Direct Purchases for Projects are Charged to Projects at:

A.          Actual Invoiced Costs

B.    X    Actual Invoiced Costs Net of Discounts Taken

Y.           Other (s) 1 /

Z.          Not Applicable
 

2.3.2     Inventory Requisitions from Central or Common, Institution-owned Inventory.
(Identify the inventory valuation method used to charge projects):

A.         First In, First Out

B.         Last In, First Out

C.         Average Costs 1/

D.         Predetermined Costs 1/

Y.   X    Other(s) 1/

Z.         Not Applicable

1/ Describe on a Continuation Sheet.
 

2.4.0     Description of Direct Personal Services. All personal services directly identified with Federally sponsored agreements or similar cost objectives. (Describe on a continuation sheet the personal services compensation costs, including applicable fringe benefits costs, if any, within each major institutional function or activity that are charged as direct personal services.)

1/ Continuation Sheet.
 

2.5.0     Method of Charging Direct Salaries and Wages. (Mark the appropriate line(s) for each Direct Personal Services Category to identify the method(s) used to charge direct salary and wage costs to Federally sponsored agreements or similar cost objectives. If more than one line is marked in a column, fully describe on a continuation sheet, the applicable methods used.)

Direct Personal Services Category

                                                                                                     Faculty          Staff              Students                  Other 1/

A. Payroll Distribution Method
(Individual time card/actual                                                                                   X                         X
hours and rates)

B. Plan - Confirmation (Budgeted,                                                   X                  X
planned or assigned work
activity, updated to reflect
significant changes)

C. After-the-fact Activity Records
(Percentage Distribution of
employee activity)

D. Multiple Confirmation Records
(Employee Reports prepared
each academic term, to account
for employee's activities,
direct and indirect charges
are certified separately.)

Y. Other(s) 1/

1/ Describe on a Continuation Sheet
 

2.5.1     Salary and Wage Cost Distribution Systems.
Within each major function or activity, are the methods marked in Item 2.5.0 used by all employees compensated by the reporting unit? (If "NO", describe on a continuation sheet, the types of employees not included and describe the methods used to identify and distribute their salary and wage costs to direct and indirect cost objectives.)

       X         Yes

               No
 

2.5.2     Salary and Wage Cost Accumulation System.
(Within each major function or activity, describe, on a continuation sheet, the specific accounting records or memorandum records used to accumulate and record the share of the total salary and wage costs attributable to each employee's direct (Federally sponsored projects, non-sponsored projects or similar cost objectives) and indirect activities. Indicate how the salary and wage cost distributions are reconciled with the payroll data recorded in the institution's financial accounting records.)

1/Continuation Sheet
 

2.6.0     Description of Direct Fringe Benefits Costs. All fringe benefits that are attributable to direct salaries and wages and are charged directly to Federally sponsored agreements or similar cost objectives. (Describe on a continuation sheet all of the different types of fringe benefits which are classified and charged as direct costs, e.g., actual or accrued costs of vacation, holidays, sick leave, sabbatical leave, premium pay, social security, pension plans, post-retirement benefits other than pensions, health insurance, training, tuition, tuition remission, etc.)

1/ Continuation Sheet.
 

2.6.1     Method of Charging Direct Fringe Benefits. (Describe on a continuation sheet, how each type of fringe benefit cost identified in item 2.6.0 is measured, assigned and allocated (for definitions, See 9903.302-1); first, to the major functions (e.g., instruction, research); and, then to individual projects or direct cost objectives within each function.)

1/ Continuation Sheet.
 

2.7.0     Description of Other Direct Costs. All other items of cost directly identified with Federally sponsored agreements or similar cost objectives. (List on a continuation sheet the principal classes of other costs which are charged directly, e.g., travel, consultants, services, subgrants, subcontracts, malpractice insurance, etc.)

1/ Continuation Sheet.
 

2.8.0     Cost Transfers. When Federally sponsored agreements or similar cost objectives are credited for cost transfers to other projects, grants or contracts, is the credit amount for direct personal services, materials, other direct charges and applicable indirect costs always based on the same amount(s) or rate(s) (e.g., direct labor rate, indirect cost) originally used to charge or allocate costs to the project (Consider transactions where the original charge and the credit occur in different cost accounting periods). (Mark one, if "NO", explain on a continuation sheet how the credit differs from the original charge.)

       X         Yes

               No
 

2.9.0     Interorganizational Transfers. This item is directed only to those materials, supplies, and services which are, or will be transferred to you from other segments of the educational institution. (Mark the appropriate line(s) in each column to indicate the basis used by you as transferee to charge the cost or price of inter-organizational transfers or materials, supplies, and services to Federally sponsored agreements or similar cost objectives. If more than one line is marked in a column, explain on a continuation sheet.)

                                                                                                                 Materials                  Supplies                  Services
                                                                                                                        (1)                               (2)                             (3)

A. At full cost excluding indirect costs attributable to group
or central office expense.

B. At full cost including indirect
costs attributable to group or
central office expenses.

C. At established catalog or market price or prices based on
adequate competition.

Y. Other(s) 1/

Z. Inter-organizational transfers are
not applicable.                                                                                              X                                  X                              X