Re: grant accounting Ross, Stuart 05 Sep 2001 19:42 EST
I'd like for you to explain more of this to me some day..... -----Original Message----- From: May, Linda [mailto:xxxxxx@EXCHANGE.FULLERTON.EDU] Sent: Wednesday, September 05, 2001 2:35 PM To: xxxxxx@HRINET.ORG Subject: Re: [RESADM-L] grant accounting I am not sure what your VP means by "cost accounting," but that term usually refers to the type of accounting used in commercial operations, i.e. cost of goods sold, gross profit, net profit, changes in equity, etc. The Federal requirements are fund accounting oriented. GASB versus FASB. They expect your costs to be "reasonable, necessary, and allocable," allocable being the operative word for your question. Allocable = specifically identifiable as an expense by that grant activity and that grant activity alone. -----Original Message----- From: xxxxxx@SBLHS.ORG [mailto:xxxxxx@SBLHS.ORG] Sent: Wednesday, August 22, 2001 6:36 AM To: xxxxxx@HRINET.ORG Subject: [RESADM-L] grant accounting Hi, all -- The finance VP at my organization has asked me a very basic grant accounting question, and my forte is not in post-award issues, so I'm asking you all for help. We are a not-for-profit health care center (not university affiliated, not presently conducting any grant-funded research projects, though we do have federal grant expenditures which approach/exceed $300K annually -- we are apparently right on the bubble until we can make a determination about some of the state flow-through awards). We have not (yet) negotiated a federal indirect cost rate, but we are researching that issue. Here is the VP's question: Are awardees of federal grants required to operate cost accounting systems to demonstrate that even direct costs are providing identifiable benefit to work for which a particular grant is awarded? I ask because both A-21 and 45 CFR 74 App. E, in "Basic Considerations," specify that even direct costs must be identified by "conforming to generally accepted cost accounting practices consistently followed by the institution." ----------------- Molly Daniel Grants Specialist Planning Dept. Sarah Bush Lincoln Health Center 1000 Health Center Drive Mattoon, IL 61938-0372 tel. 217-258-2195 fax 217-258-4135 email: xxxxxx@sblhs.org <mailto:xxxxxx@sblhs.org> web: www.sarahbush.org <http://www.sarahbush.org> ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================