|CAS 502 Exception|
Please attach in a separate e-mail a copy of the proposed/approved budget along with a copy of the relevant pages of the grant that describe the scope of the grant. Once this form has been submitted, the user will automatically be directed to submit an e-mail. Please attach copies of all relevant pages to this e-mail.
Please note that a budget transfer has to be submitted after this request has been approved
back to top
This form is used to support a direct cost that is normally treated as an indirect cost. Cost Accounting Standard 502 and OMB Circular A-21, Section F.6.b, establish the cost principle that certain expenses should normally be treated as indirect costs. FAU’s Costing Policy states that the following items are typically treated as indirect costs:
1. Administrative and Clerical Salary and the following Non-Labor Administrative Costs:
Certain circumstances exist that allow the above expenses to be charged as direct costs to a Federal award. For Administrative and Clerical Salary, the circumstance is called a “Major Project”. For the Non-Labor Administrative Costs, the situation is called ‘special circumstances”. When these situations exist, the PI should complete this form and submit it along with the complete proposal package to Sponsored Programs to request approval to charge these items as direct costs.
This form should be used only for proposals submitted to Federal and Federal Flow Through agencies, along with any related Cost Share Accounts. Non Federal agencies are not subject to OMB Circular A-21 or the Cost Accounting Standards. Therefore, proposals submitted to Non Federal agencies do not require this form.
A “Major Project” is defined by OMB Circular A-21, Section F 6 b (2) as a project that requires an extensive amount of administrative or clerical support, which is significantly greater than the routine level of such service provided by an academic department. For the clerical and administrative salaries to be allowable on a Federal award, one of the “Major Projects” must exist in the Scope of Work of the project. The box should be checked on the form to indicate the circumstance that applies to the proposed project. The circumstance should be consistent with the Scope of Work of the project.
“Special Circumstances” exist when a cost meets the following criteria:
When “Special Circumstances” exist, the PI can use the CAS 502 Exception Form to request approval to charge the expense item as a direct cost to the Federal award, as opposed to the typical allocation method, which is treating the expense item as indirect costs.
The signatures are required for documentation of the approval of the PI, Department Chair, and College Dean or his/her designee. If Research Accounting approves the form and if the funds are awarded and the sponsor approves the proposed budget (or does not expressly disapprove any of the expense items included in the proposal budget), these expense items are deemed to be Exceptions to Cost Accounting Standard 502 and allowable as direct costs on the Federal award.
For more information regarding the allowability of costs on Federal awards, please go to Research Accounting. If you have questions concerning this form, please contact your Sponsored Programs Representative.