University of California, San Diego
August 10, 2001
SUBJECT: Cost Accounting Standards
As a recipient of federal awards, UCSD is required to comply with various federal regulations in the administration of its sponsored projects. Significant changes in these regulations resulted in the formation of a campus workgroup. Comprised of representatives from Vice Chancellors' offices, the Controller's Office, and other administrative offices working with consultants from PriceWaterhouseCoopers, this workgroup has completed work on updating campus policy and procedures related to these standards.
A number of policy changes were necessary for UCSD to be responsive to the change in regulations. One element of new policy, which may vary from some past practice, is that inclusion of administrative or clerical costs in an award budget DOES NOT necessarily mean those costs are acceptable under federal regulations. For more details on this and other policy changes, please review the following PPMs on line:
PPM 150-40 - Cost Accounting Standards Compliance (NEW)
It is important for all individuals having contract and grant management and administrative responsibility to be familiar with these policies. In addition to the policies on the web noted above, the following information resources are now, or soon will be, available to you to support the transition of your accounting practices:
1. A brief summary of PPM 150-40, 150-42, and 150-43 Significant
Points is available at:
Please avail yourself of these resources. Thank you for your diligence as we work together to ensure that UCSD's accounting practices meet sponsor expectations.