University of Vermont

Cost Accounting Services 

Cost Accounting Standards Cost Accounting Principles for Benefit Rates

The cost accounting principles for determining and applying benefit rates are:

  • the costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, non-Federal entity-employee agreement, or an established policy of the University.
  • Benefit costs must be allowable, allocable, reasonable and treated consistently
  • Benefit costs assigned to each benefit rate (numerator) are actual costs or are allocated based on salaries/wages (base) of employees receiving the benefits
  • Benefit costs related to salaries or wages treated as direct costs on sponsored agreements must also be treated as direct costs
  • Benefit costs related to salaries or wages treated as F&A costs must also be treated as F&A costs
  • Unallowable costs such as tuition remission for spouse and dependents are not included in the benefit costs of the rates.
  • Health insurance for postdoc fellows/trainees are not included in any of the benefit rates.
  • Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages (base)

These cost principles are based on the applicable Federal Governmental regulations (Uniform Guidance 200.431)

Last modified July 03 2017 09:00 AM