SUBJECT:

Federal Cost Accounting Standards (CAS) Orientation Forums

As previously announced, the Federal Government has imposed four Cost Accounting
Standards (CAS) on universities. This will have a major impact on our cost
reimbursement. Because of its large Federal volume, UCSD is required to comply
with these standards, and was required to submit a cost accounting Disclosure
Statement (DS-2) to the Federal Government by June 30, 1996. The campus DS-2
has been completed and submitted to the Federal Government. The campus DS-2 has
been installed on the UCSD Business and Financial Services Website; the URL is:
http://www-bfs.ucsd.edu/emf/cas/casbds2\dsindex.htm.

However, the CAS compliance process is not finished. The campus now needs to
develop and clarify policies and procedures, and to provide orientation and
training for all affected personnel. We will continue to seek input on CAS
compliance and policy/procedure revisions from all affected campus personnel,
through their representatives on the CAS Implementation Team, the CAS Steering
Committee, or other CAS working groups. In addition, three campus CAS
Orientation Forums have been scheduled as follows:

  Tuesday, October 1, 1996, noon    SIO Sumner Auditorium
  Tuesday, October 1, 1996, 4 pm    SOM Garren Auditorium
  Wednesday, October 9, 1996, 10 am  Price Center Ballroom A

The forums will take one hour (approximately), but the presenters and a Coopers
and Lybrand representative will remain for as long as necessary to answer all
questions and discuss CAS issues. We urge all who are involved in Federal
contract and grant activity to attend.

It is clear that the Federal imposition of Cost Accounting Standards on
universities is resulting in major changes for us, and will require a large
amount of effort to ensure compliance. We hope that all at UCSD will take the
time to learn and understand the changes, and will cooperate to ensure that
costing practices at UCSD comply with the CAS requirements.

Please feel free to contact Bill Brophy, CAS Project Director, at
bbrophy@ucsd.edu or x46517, if you have any questions or comments on these
efforts, or if you need guidance on costing practices pending policy
development/revision and campus orientation.

Sincerely, David D. Sworder Acting Vice Chancellor for Research Steven W. Relyea Vice Chancellor Business Affairs John A. Woods Vice Chancellor Resource Management and Planning