CONTRACT COST PRINCIPLES AND PROCEDURES physical plant, and charges representing use allowance or depreciation applicable to the buildings and equipment utilized in the performance of the functions included in this category. 15-804.2 Expenses—Instruction Activity. The expenses in this category are generally applicable in their entirety to the instruction activity. They should be allocated to applicable cost objectives within the instruction activity, including educational service agreements, when such agreements reasonably benefit from these expenses. Such expenses should be allocated on the basis of population served (computed on the basis of full-time equivalents including students, faculty, and others as appropriate) or other methods which will result in an equitable distribution to cost objectives in relation to the benefits received and be consistent with guides provided in 15-305.2. 15-805 Direct Costs of Educational Service Agreements. Direct costs of work performed under educational service agreements will be determined consistent with the principles set forth in 15-304. 15-806 Indirect Costs of the Instruction Activity. The indirect costs of the instruction activity as a whole should include its allocated share of administrative and supportive costs determined in accordance with the principles set forth in 15-804 and 15–306. Such costs may include other items of indirect cost incurred solely for the instruction activity and not included in the general allocation of the various categories of indirect expenses. Costs incurred in behalf of the institution by State and local governments are allowable as provided for in 15-303.6. 15-807 Indirect Costs Applicable to Educational Service Agreements. The individual items of indirect costs applicable to the instruction activity as a whole should be assigned to (1) educational service agreements, and (2) all other instructional work through use of appropriate cost groupings, selected distribution bases, and other reasonable methods as outlined in 15-305.2. A single indirect pool may be used for all educational service agreements provided this results in a reasonably equitable distribution of costs among agreements in relation to indirect support services provided. However, when the level of indirect support significantly varies for work performed either on campus or off campus under a particular agreement or group of agreements, separate cost pools should be established consistent with the principles set forth in 15-307.1(b). Where direct charges are provided for under educational service agreements for such things as commencement fees, student fees, and tuition, the related indirect costs, through separate cost groupings, should be excluded from the indirect costs allocable to the service agreements. 15-808 Indirect Cost Rates for Educational Service Agreements. An indirect costs rate should be determined for the educational service agreement pool or pools, as established under 15-807. The rate in each case should be stated as the percentage which the amount of the particular educational service agreement pool is of the total direct salaries and wages of all educational service agreements identified with such pool. Indirect costs should be distributed to individual agreements by applying the rate or rates established to direct salaries and wages for each agreement. When a fixed rate is negotiated in advance of a fiscal year, the over- or under-recovery for that year may be included as an adjustment to the indirect cost for the next rate negotiation as in 15-307.4 and '15-307.5. 15-808 ARMED SERVICES PROCUREMENT REGULATION CONTRACT COST PRINCIPLES AND PROCEDURES 15-809 General Standards for Selected Items of Cost. The standards for selected items of cost as set forth in 15-309.1 through 15-309.46 applicable to research agreements will also be applied to educational service agreements with the following modifications: 15-809.1 Commencement and Convocation Costs (15-309.5). Expenses incurred for convocations and commencements apply to the instruction activity as a whole. Such expenses are unallowable as direct costs of educational service agreements unless specifically authorized in the agreement or approved in writing by the sponsoring agency. For eligibility of allocation as indirect costs, see 15-804. 15-809.2 Compensation for Personal Services (15-309.7). Charges to educational service agreements for personal services will normally be determined and supported consistent with the provisions of 15-309.7. However, the provisions for stipulated salary support will not be used for educational service agreements. Also, charges may include compensation in excess of the base salary of a faculty member for the conduct of courses outside the normal duties of such member provided that: (i) extra charges are determined at a rate not greater than the basic salary rate of the member; (ii) salary payments for such work follow practices consistently applied within the institution; and (iii) specific authorization for such charges is included in the educational service agreement. 15-809.3 Scholarships and Student Aid Costs (15-309.35). Expenses incurred for scholarships and student aid are unallowable as either direct costs or indirect costs of educational service agreements, unless specifically authorized in the educational service agreement or approved in writing by the sponsoring agency. 15-809.4 Student Activity Costs (15-309.40). Expenses incurred for student activities are unallowable as either direct costs or indirect costs of educational service agreements, unless specifically authorized in the educational service agreement or approved in writing by the sponsoring agency. 15-809.5 Student Services Costs (15-309.41). Expenses incurred for student services are unallowable as direct costs of educational service agreements unless specifically authorized in the agreement or approved in writing by the sponsoring agency. For eligibility of allocation as indirect costs, see 15-804. 15-809.5 ARMED SERVICES PROCUREMENT REGULATION A list of current CFR volumes, a list of superseded CFR volumes, and a list of CFR titles, subtitles, chapters, subchapters and parts are included in the CFR Index to the Code of Federal Regulations which is published separately and revised annually. Table of CFR Titles and Chapters Alphabetical List of Agencies Appearing in the CFR Redesignation Table List of CFR Sections Affected |