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PPS 5.15


Policy and Procedure Statement 5.15 Applicable Cost Standards
Review Date: 08/01/2015 for Sponsored Programs
Review Cycle: E4Y (5 paragraphs)
Reviewer: Director, Sponsored Programs  


  1. Many funding agencies place different sets of applicable cost standards on sponsored programs. In order to prevent unallowable costs charges to a sponsored program, the university has set the following as applicable cost standards for all grants except for a sponsor’s individual policies which will supersede these set standards. This policy applies to all sponsored programs. The applicability of this policy is to ensure a consistent cost basis for audit purposes and for the Facilities and Administrative Cost Rate (F&A) proposal submitted to the US Dept. of Health and Human Services.


  1. Allowable Costs – Those costs which are deemed to be allocable, allowable and applied consistently with university policy and sponsored program guidelines.


  1. Unless otherwise stated, the university shall adhere to the following as its standard policy unless superseded by a specific sponsor’s policy or procedure.
    1. Office of Management and Budget (OMB) Circulars http://www.whitehouse.gov/omb/circulars_default
      1. OMB A-21 Cost Principles for Educational Institutions
      2. OMB A-110 Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations
      3. OMB A-133 Audits of States, Local Governments and Non-Profit Organizations
    2. Office of the Governor, State of Texas
      1. Uniform Grant Management Standards
        1. http://governor.state.tx.us/grants/what/


  1. Proportional Costs for Certain Services – Certain costs (such as cellular phone services) may only be charged to a sponsored program in direct proportion to the current payroll appointment of the subject employee.


  1. This PPS has been approved by the reviewer listed below and represents Texas State’s Division of Academic Affairs policy and procedure from the date of this document until superseded.

Review Cycle ______________________    Review Date: ______________

Reviewer: _________________________    Date:    ____________________

Approved:_________________________    Date:    _____________________

Gene Bourgeois
Provost and Vice President
for Academic Affairs

Texas State University-San Marcos
Provost and Vice President for Academic Affairs
Last Updated: August 31, 2011
Send Comments and questions to: tg12@txstate.edu