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Posted by / 10-Jul-2017 01:35

(e) Cost accounting standards—educational institutions. (1) The contracting officer shall insert the clause at FAR 52.230-5, Cost Accounting Standards—Educational Institution, in negotiated contracts awarded to educational institutions, unless the contract is exempted (see .201-1 (FAR Appendix)), the contract is to be performed by an FFRDC (see .201-2(c)(5) (FAR Appendix)), or the provision at .201-2(c)(6) (FAR Appendix) applies.(2) The clause at FAR 52.230-5 requires the educational institution to comply with all CAS specified in (FAR Appendix), to disclose actual cost accounting practices as required by .202-1(f) (FAR Appendix), and to follow disclosed and established cost accounting practices consistently.Also, the CFAO shall— (i) If the Disclosure Statement is adequate, notify the contractor in writing, and provide a copy to the auditor with a copy to the contracting officer if the proposal triggers submission of a Disclosure Statement.The notice of adequacy shall state that— (A) The disclosed practices are adequately described and the CFAO currently is not aware of any additional practices that should be disclosed; (B) The notice is not a determination that all cost accounting practices were disclosed; and (C) The contractor shall not consider a disclosed practice, by virtue of such disclosure, an approved practice for estimating proposals or accumulating and reporting contract and subcontract cost data; or (ii) If the Disclosure Statement is inadequate, notify the contractor of the inadequacies and request a revised Disclosure Statement.(b) Any determination that it is impractical to secure a subcontractor’s Disclosure Statement must be made in accordance with .202-2 (FAR Appendix).Federal awards issued prior to December 26, 2014 should be managed in accordance with OMB Circulars A-21, A-110, and A-133.(a) When the Government requires determinations of adequacy of subcontractor disclosure statements, the CFAO for the subcontractor shall provide this determination to the CFAO for the contractor or next higher-tier subcontractor.The higher-tier CFAO shall not change the determination of the lower-tier CFAO.

(2) The clause at FAR 52.230-6 specifies rules for administering CAS requirements and procedures to be followed in cases of failure to comply.Federal awards issued on or after December 26, 2014 should be managed in accordance with 2 CFR Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (The Uniform Guidance).It is important to verify the appropriate regulations applicable to your award.Documentation of appropriate regulations may be found in the Award Notice issued by the funding agency.These guidelines pertain to federally sponsored projects and should be used as guidance for all sponsors unless specifically addressed in a non-Federal sponsor’s policies and/or procedures.

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Such action should include requesting a revised Disclosure Statement that corrects the CAS noncompliance.

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