Accounting for Applicable Credits (FA 174)

To ensure that the cost of a sponsored agreement is comprised of the allowable direct costs incident to its performance, plus the allocable portion of the allowable F&A costs of the institution, less applicable credits (OMB A-21 Section C), the University developed Policy FA 174 to address the accounting treatment for credits (i.e., refunds, rebates, incentive payments, and other credits) that are applicable to specific projects or to cost pools used in the development of the University’s Facilities and Administrative rate proposal.

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• Accounting