Procedures & compliance

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What is a sponsored project?

A project supported by an external funding source under a mutually binding agreement that restricts the use of funds to the approved project and stipulates other conditions with which the university must comply. Sponsored projects typically:

  1. are initiated by a formal proposal and award notice
  2. are restricted to a particular purpose as described in the proposal
  3. require technical and/or financial reports
  4. entail other administrative requirements.

The decision to classify a source of support as a sponsored project is coordinated among the Office for Research and Sponsored Projects Administration (ORSPA), the Development Office, and the Comptroller’s Office. See RSP 004, "Definitions" for a more complete definition.

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Sponsored account lifecycle

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Disclosure Statement (DS-2)

On May 13, 2004, Department of Health and Human Services (DHHS) approved ASU's Cost Accounting Standards Board Disclosure Statement.

The Federal Government requires a Disclosure Statement (DS-2) of cost accounting practices from any institution of higher education that receives $25 million or more in sponsored agreements. Universities must demonstrate adherence to Cost Accounting Standards (CAS) as stated in Office of Management and Budget (OMB) Circular A- 21, Cost Principles for Institutions of Higher Education.

The DS-2 is intended to establish a clear understanding of the cost accounting practices that the institution follows or proposes to follow. The DS-2 explains the methodology for distinguishing direct costs from facilities and administrative costs (also known as indirect costs) and identifies the methodology for accumulating and allocating the facilities and administrative costs.

For more information about ASU’s DS-2 Statement:
Anne Feuerborn, Cost & Research Management Analysis
Mail code 3503, or 480.965.4775

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Facilities & administrative (F&A) costs

The F&A Cost Rate page includes ASU's F&A rate agreement as well as how ASU's F&A rate is derived and how it is negotiated.

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Cost Accounting Standards (CAS)

Cost accounting standard 502 establishes a consistency in allocating costs incurred for the same purpose by educational institutions. There are four cost accounting standards.

  • 501 - Cosistency in estimating, accumulating, and reporting costs
  • 502 - Consistency in allocating costs incurred for the same purpose
  • 505 - Accounting for unallowable costs
  • 506 - Cost accounting period

See also: Charging facilities & administrative costs as direct costs.

See also: F&A Costs FAQ.

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Reporting & Record-keeping

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Spending from your account

See the Investigator Handbook's Carrying out your project section.

You may also want to refer to the following Financial Services charts:

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Guidance documents on expenditures