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8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
COVER SHEET AND CERTIFICATION
0.1 Educational Institution:
(a) Name: Case Western Reserve University
(b) Address: 10900 Euclid Avenue
(c) Cleveland, OH 44106
(d) Not applicable
0.2 Reporting Unit is:
A. ___ Independently Administered Public Institution
B. _x_ Independently Administered Nonprofit Institution
C. ___ Administered as Part of a Public System
D. ___ Administered as part of a Nonprofit System
E. ___ Other (Specify)
0.3 Official to Contact Concerning this Statement:
(a) Name and Title: Hossein Sadid, Assoc. V.P. and Controller
(b) Phone Number: 216/368-2126
0.4 Statement Type and Effective Date:
A. (Mark type of submission. If a revision, enter number)
(a) _x_ Original Statement
(b) ___ Amended Statement: Revision No.
_______
B. Effective Date of this Statement: (Specify) August 10,
1996
0.5 Statement Submitted To (Provide office name, location and
telephone number)
A. Cognizant Federal Agency: Department of Health and Human
Services
Region VI, Dallas,
TX 214/767-3261 x406
B. Cognizant Federal Auditor: Department of Health and Human
Services
Region VI, Dallas,
TX 214/767-3261 x406
FORM CASB DS-2 (rev 10/94) C-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
COVER SHEET AND CERTIFICATION
CERTIFICATION
I certify that to the best of my knowledge and belief this Statement,
as amended in the case of a revision, is the complete and accurate
disclosure as of the date of certification shown below by the
above-named organization of its cost accounting practices as required
by the Disclosure Regulations (48 CFR 9903.202) of the Cost Accounting
Standards Board under U.S.C. § 422.
Date of Certification: August 10, 1996
(Signature)
Hossein Sadid
Associate Vice President and Controller
THE PENALTY FOR MAKING A FALSE STATEMENT IN THIS DISCLOSURE IS
PRESCRIBED IN 18 U.S.C. § 1001
FORM CASB DS-2 (REV 10/94) C-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART I - GENERAL INFORMATION
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
PART I
1.1.0 Description of Your Cost Accounting
System for recording expenses charged to
Federally sponsored agreements (e.g.,
contracts, grants and cooperative
agreements). (Mark the appropriate
lines(s), and if more than one is
marked, explain on a continuation
sheet.)
A. ___ Accrual
B. _x_ Modified Accrual Basis 1/
C. _x_ Cash Basis
D. ___ Other 1/
Integration of Cost Accounting with
Financial Accounting. The cost
accounting system is: (Mark one. If B
or C is marked, describe on a
continuation sheet the costs which are
accumulated on memorandum records.)
1.2.0 A. ___ Integrated with financial
accounting records.
(Subsidiary cost accounts are
all controlled by general ledger control
accounts.)
B. ___ Not integrated with financial
accounting records.
(Costs data are accumulated on
memorandum records.)
C. _x_ Combination of A and B
1.3.0 Unallowable Costs. Costs that are not
reimbursable as allowable costs under
the terms and conditions of Federally
sponsored agreements are: (Mark one)
A. _x_ Specifically identified and
recorded separately in the formal
financial accounting records. 1/
B. ___ Identified in separately
maintained accounting records or
workpapers. 1/
C. ___ Identifiable through use of
less formal accounting techniques that
permit audit
verification. 1/
D. ___ Combination of A, B or C 1/
E. ___ Determinable by other means. 1/
1.3.1 Treatment of Unallowable Costs.
(Explain on a continuation sheet how
unallowable costs and directly
associated costs are treated in each
allocation base and indirect expense
pool, e.g., when allocating costs to a
major function or activity; when
determining indirect cost rates; or,
when a central office or group office
allocates costs to a segment.)
1.4.0 Cost Accounting Period: 7/1 to 6/30
(Specify the twelve month period used
for the accumulation and reporting of
costs under Federally sponsored
agreements, e.g., 7/1 to 6/30. If the
cost accounting period is other than the
institution's fiscal year used for
financial accounting and reporting
purposes, explain circumstances on a
continuation sheet.)
1.5.0 State Laws or Regulations. Identify on
a continuation sheet any State laws or
regulations which influence the
institution's cost accounting practices,
e.g., State administered pension plans,
and any applicable statutory limitations
or special agreements on allowance of
costs.
FORM CASB DS-2 (rev 10/94) I-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
1.1.0 Salary and fringe expenses for non-exempt (hourly)
employees are charged based on the accrual method. All exempt
employee salary and benefits are charged on the cash basis. All
non-salary expenses (supplies, travel, etc.) are charged on the
cash basis.
1.2.0 Cost accounting records and accounts are integrated
with the financial accounting system. Space inventory information
and step-down allocation systems are not kept in the financial
accounting system. These systems, along with the financial accounting
system, are used to prepare the indirect cost rate and the schedule
of federal awards.
1.3.0 Unallowable costs are those that are defined under
OMB Circular A-21 (Section J), terms and conditions of the award,
or any specific agency requirements. Unallowable expense classes
have been established to separate out these costs.
1.3.1 Unallowable costs are not charged to sponsored projects
(grants and contracts) when allocating direct costs to specific
activities. Unallowable costs are tracked separately on the general
ledger and removed from developing indirect cost rates. Unallowable
costs are only incurred and paid for through the University's
unrestricted general funds. Unallowable costs which were otherwise
allowable (cost overruns on research) are cost-shared and included
in the indirect cost allocation base. However, they are not included
in the indirect expense pool.
1.4.0 Rates for service centers are established for a two-fiscal
year period. The new rates are developed based on the estimated
costs of service and carry forward over/under recovery of costs
for the prior period.
1.5.0 None
FORM CASB DS-2 (rev 10/94) I-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - DIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Instructions for Part II
Institutions should disclose what costs are, or will be,
charged directly to Federally sponsored agreements
or similar cost objectives as Direct Costs. It is expected
that the disclosed cost accounting practices (as defined at
48CFR 9903.302-1) for classifying costs either as direct costs
or indirect costs will be consistently applied to all costs
incurred by the reporting unit.
2.1.0
Criteria for Determining How Costs are Charged to Federally
Sponsored Agreements or Similar Cost Objectives. (For all
major categories of cost under each major function or activity,
such as instruction, organized research, other sponsored
activities and other institutional activities, describe on a
continuation sheet, your criteria for determining when costs
incurred for the same purpose, in like circumstances, are
treated, either as direct costs only, or as indirect costs
only, with respect to final cost objectives. Particular
emphasis should be placed on items of cost that may be treated
as either direct or indirect costs (e.g., Supplies, Materials,
Salaries and Wages, Fringe Benefits, etc.) depending upon the
purpose of the activity involved. Separate explanations on the
criteria governing each direct cost category identified in this
Part II are required. Also, list and explain if there are any
deviations from the specified criteria.)
2.20
Description of Direct Materials. All materials and supplies
directly identified with Federally sponsored agreements or
similar cost objectives. (Describe on a continuation sheet the
principal classes of materials which are charged as direct
materials and supplies.)
2.3.0
Method of Charging Direct Materials and Supplies. (Mark the
appropriate line(s), and if more than one is marked, explain on
a continuation sheet.)
2.3.1
Direct Purchases for Projects are Charged to Projects at:
A. ___ Actual Invoiced Costs
B. ___ Actual Invoiced Costs Net of Discounts Taken
Y. _x_ Other(s) 1/
Z. ___ Not Applicable
2.3.2
Inventory Requisitions from Central or Common,
Institution-owned Inventory. (Identify the Inventory valuation
method used to charge projects):
A. _x_ First In, First Out
B. ___ Last In, Last Out
C. ___ Average Costs 1/
D. ___ Predetermined Costs 1/
Y. ___ Other(s) 1/
Z. ___ Not Applicable
2.4.0
Description of Direct Personal Services. All personal services
directly identified with Federally sponsored agreements or
similar cost objectives. (Describe on a continuation sheet the
personal service compensation costs, including applicable
fringe benefits costs, if any, within each major institutional
function or activity that are charged as direct personal
services.)
FORM CASB DS-2 (rev 10/94) II-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - DIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
2.5.0 Method of Charging Direct Salaries and Wages.
(Mark the appropriate line[s] for each Direct Personal Services
Category to identify the method[s] used to charge direct salary
and wage costs to Federally sponsored agreements or similar cost
objectives. If more than one line is marked in a column, fully
describe on a continuation sheet the applicable methods used.)
Direct Personal Services Category
Faculty Staff Students Other 1/
(1) (2) (3) (4)
A. Payroll Distribution Method x
(individual time card/actual hours
and rates)
B. Plan-Confirmation (budgeted, planned
or assigned work activity, updated to
reflect significant changes)
C. After-the-fact Activity Records x x x
(percentage distribution of employee
activity)
D. Multiple Confirmation Records (employee
reports prepared each academic term, to
account for employee's activities, direct
and indirect charges are certified separately.)
Y. Other(s) 1/
2.5.1 Salary and Wage Cost Distribution Systems
Within each major function or activity, are the methods marked
in Item 2.5.0 used by all employees compensated by the reporting
unit? (If "no," describe on a continuation sheet the
types of employees not included and describe the methods used
to identify and distribute their salary and wage costs to direct
and indirect cost objectives.)
_x_ Yes
___ No
2.5.2 Salary and Wage Cost Accumulation System
(Within each major function or activity, describe on a continuation
sheet the specific accounting records or memorandum records used
to accumulate and record the share of the total salary and wage
costs attributable to each employee's direct [Federally sponsored
projects, non-sponsored projects or similar cost objectives] and
indirect activities. Indicate how the salary and wage cost distributions
are reconciled with the payroll data recorded in the institution's
financial accounting records.)
FORM CASB DS-2 (rev 10/94) II-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - DIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
2.6.0 Distribution of Direct Fringe Benefits Costs.
All fringe benefits that are attributable to direct salaries
and wages and are charged directly to Federally sponsored agreements
or similar cost objectives. (Describe on a continuation sheet
all of the different types of fringe benefits which are
classified and charged as direct costs,e.g., actual or accrued
costs of vacation, holidays, sick leave, sabbatical leave, premium
pay, social security, pension plans, post-retirement benefits
other than pensions, health insurance, training, tuition, tuition
remission, etc.)
2.6.1 Method of Charging Direct Fringe Benefits.
(Describe on a continuation sheet how each type of fringe benefit
cost identified in Item 2.6.0 is measured, assigned and allocated
[for definitions, See 9903.302-1]; first, to the major functions,
[e.g., instruction, research]; and, then to individual projects
or direct cost objectives within each function.)
2.7.0 Description of Other Direct Costs. All other
items of cost directly identified with Federally sponsored agreements
or similar cost objectives. (List on a continuation sheet the
principal classes of other costs which are charged directly, e.g.,
travel, consultants, services, subgrants, subcontracts, malpractice
insurance, etc.)
2.8.0 Cost Transfers. When Federally sponsored
agreements or similar cost objectives are credited for cost transfers
to other projects, grants or contracts, is the credit amount for
direct personal services, materials, other direct charges and
applicable indirect costs always based on the same amount(s) or
rate(s) (e.g., direct labor rate, indirect costs) originally used
to charge or allocate costs to the project? (Consider transactions
where the original charge and the credit occur in different cost
account periods.) (Mark one. If "No," explain on a
continuation sheet how the credit differs from original charge.)
_x_ Yes
___ No
2.9.0 Interorganizational Transfers. This Item
is directed only to those materials, supplies, and services which
are, or will be, transferred to you from other segments of the
educational institution. (Mark the appropriate line(s) in each
column to indicate the basis used by you, as transferee, to charge
the cost or price of interorganizational transfers or materials,
supplies and services to Federally sponsored agreements or similar
cost objectives. If more than one line is marked in a column,
explain on a continuation sheet.)
Materials Supplies Services
(1) (2) (3)
A. At full cost excluding indirect costs
attributable to group of central office
expenses
B. At full cost including indirect costs
attributable to group or central office
expenses
C. At established catalog or market price or
prices based on adequate competition.
Y. Other(s) 1/
Z. Interorganizational transfers are not x x x
applicable
Note: See 3.2.0, Service Centers
FORM CASB DS-2 (rev 10/94) II-3
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
2.1.0 The University follows the OMB Circular A-21, Section
D, for charging costs direct to federally sponsored agreements.
Direct costs are those that can be identified specifically to
federally sponsored agreements, or other similar final cost objectives,
relatively easily with a high degree of accuracy through specific
identification, specialized service facilities rates, proportional
benefit and reclassifying. Cost can be identified to final cost
objectives through specific identification, specialized service
facilities rates, proportional benefit, and recharging. The University
follows the criteria outlined in Section E of OMB Circular A-21
for indirect costs. Indirect costs are those that are incurred
for common or joint objectives and therefore cannot be readily
and specifically identified with a single federally sponsored
agreement or other institutional activity. Costs incurred for
the same purpose in like circumstances are treated consistently
as either direct or indirect costs with respect to final cost
objectives. For those types of cost which are sometimes accounted
for as direct and sometimes accounted for as indirect--e.g., administrative
and clerical, postage, local telephone--charging the costs as
direct is determined by the difference circumstance and purpose
under which they are incurred. The criteria of a different circumstance
and purpose may be specific performance requirements beyond those
required for routine or general support to the agreement or the
costing practices specified by federal agency policy. Normally
treated indirect costs that are directly charged must be specifically
identified to the federally sponsored agreement and explicitly
budgeted for in the award.
2.2.0 The following are the principal classes of materials
which are charged as direct materials and supplies:
1. Chemicals, radioactive materials and bio-hazardous material
2. Glassware
3. Gases including cylinder rental
4. Other laboratory supplies (gloves, computer supplies, research
notebooks, etc.)
2.3.1 Direct purchases for projects are charged based on
actual payment to vendors which may be the invoice cost or the
actual invoice cost less the early payment discount, if available.
Any vendor credit received after payment is rendered is credited
to the project which was charged for the original invoice.
2.3.2 To establish an inventory account, the monthly inventory
balance must be $25,000 or more.
2.4.0 Direct personal services costs consist of salaries
and wages plus fringe benefits of regular full time faculty, principal
investigators, professional and administrative staff, temporary
academic or research professionals, etc. Salaries and wages are
charged directly to benefitting federally sponsored agreements
based on the payroll distribution system as supported by after-the-fact
effort certification for faculty and exempt staff and individual
time-and-attendance sheets for nonexempt staff.
FORM CASB DS-2 (rev 10/94) II-4
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
2.5.0 Hourly staff (non-exempt) salary and fringe are distributed
based on time and attendance reports filed monthly. These reports
track the actual time spent on various projects and activities.
Other employee salary and fringe are distributed using an after-the-fact
effort distribution system. Each month certification reports
are filed by department administrators distributing PIs and other
employee efforts based on the actual time spent on various projects
and activities.
2.5.1 The effort distribution or time and attendance system
described in Item No. 2.5.0 is not used for employees whose time
is not charged to a single federally sponsored agreement or other
cost objectives.
2.5.2 The distribution data is accumulated using either
an Effort Distribution form or Time and Attendance form. The
data from these forms are fed into the general ledger via the
Salary Distribution System. Each faculty, staff or student is
placed in a home department account where all related federally
sponsored projects, non-sponsored projects or similar cost objectives
are placed. All salaries to these activities are then allocated
to specific activities (except budget 2) based on the actual time
spent on these activities. The Salary Distribution System processes
distribution of payroll based on actual effort and reconciles
automatically the total payroll, actual payments to employees,
to the total amount charged to departments at every payroll cycle.
Departments receive monthly effort distribution, salary analysis
and expense statements showing in detail and summary all payroll
charges.
2.6.0 The following costs are included in the fringe benefit
rate: FICA, retirement, life insurance, tuition benefits, severance
allowance, disability insurance, benefits salary, worker's compensation,
unemployment insurance, health insurance, dental insurance and
consulting for benefits.
2.6.1 The university uses a single blended fringe benefit
rate to allocate fringe benefits expenses to federally sponsored
projects, non-sponsored projects and similar cost objectives.
All salary expenses (except students) receive an allocation of
fringe benefit costs at a single fixed rate. Students do not
qualify for fringe benefits. The over/under recovery of fringe
benefit expenses is carried forward to next year, and the fringe
rate is established using the estimated fringe costs plus-or-minus,
under/over recovery from the prior year. Fringe expenses in the
fringe pool are actual expenses paid during the fiscal year.
These expenses are allocated to actual salaries and wages paid.
2.7.0 The following are the principal classes of other
costs which are charged directly:
1. Equipment
2. Outside services (consultants, salary billings from affiliates,
temporary
workers, subcontractors, and patient care).
3. Internal service centers (animals, machine shops, xeroxing,
etc.)
4. Travel and meeting expenses
5. Other direct (postage, telephone and freight, where allowable)
6. Maintenance service contracts
7. Rentals
8. Stipends, tuition for trainees.
FORM CASB DS-2 (rev 10/94) II-5
End of Part II
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Instructions for Part III
Institutions should disclose how the segment's total indirect
costs are identified and accumulated in specific indirect cost
categories and allocated to applicable indirect cost pools and
service centers within each major function or activity, how service
center costs are accumulated and "billed" to users,
and the specific indirect cost pools and allocation bases used
to calculate the indirect cost rates that are used to allocate
accumulated indirect costs to Federally sponsored agreements or
similar final cost objectives. A continuation sheet should be
used wherever additional space is required or when a response
requires further explanation to ensure clarity and understanding.
The following Allocation Base Codes are provided for use in connection
with Items 3.1.0 and 3.3.0:
A. Direct Charge or Allocation
B. Total Expenditures
C. Modified Total Cost Basis
D. Modified Total Direct Cost Basis
E. Salaries and Wages
F. Salaries, Wages and Fringe Benefits
G. Number of Employees (head count)
H. Number of Employees (full time equivalent basis)
I. Number of Students (head count)
J. Number of Students (full time equivalent basis)
K. Student Hours - classroom and work performed
L. Square Footage
M. Usage
N. Unit of Product
O. Total Production
P. More than one base (Separate Cost Groupings) 1/
Y. Other(s) 1/
Z. Category or Pool not applicable
3.1.0 Indirect Cost Categories - Accumulation and Allocation.
This item is directed at the identification, accumulation and
allocation of all indirect costs of the institution. (Under the
column heading "Accumulation Method," insert "Yes"
or "No" to indicate if the cost elements included in
each indirect cost category are identified, recorded and accumulated
in the institution's formal accounting system. If "No,"
describe on a continuation how the cost elements included in the
indirect cost category are identified and accumulated. Under
the column heading of "Allocation Base," enter one of
the allocation base codes A through P, Y, or Z to indicate the
basis used for allocating the accumulated costs of each indirect
cost category to other applicable indirect cost categories, indirect
cost pools, other institutional activities, specialized service
facilities and other service centers. Under the column heading
of "Allocation Sequence," insert 1, 2 or 3 next to each
of the first three indirect cost categories to indicate the sequence
of the allocation process. If cross-allocation techniques are
used, insert "CA." If an indirect cost category listed
in this section is not used, insert "NA.")
FORM CASB DS-2 (rev 10/94) III-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Accumulation Allocation Allocation
Indirect Cost Category Method Base Code Sequence
(a) Depreciation/Use Allowances/Interest 1
Building Yes L
Equipment Yes L
Capital Improvements to Land 1/ Yes L
Interest 1/ Yes L
(b) Operation and Maintenance Yes Y 2
(c) General Administration and General Yes D 3
Expense
(d) Departmental Administration Yes D
(e) Sponsored Projects Administration Yes Y
(f) Library Yes P
(g) Student Administration and Services Yes P
(h) Other 1/
3.2.0 Service Centers. Service Centers are departments
of functional units which perform specific technical or administrative
services primarily for the benefit of other units within a reporting
unit. Service Centers include "recharge centers" and
the "specialized service facilities" defined in Section
J. of Circular A-21. (The codes identified below should be inserted
on the appropriate line for each service center listed. The column
numbers correspond to the paragraphs listed below that provide
the codes. Explain on a continuation sheet if any of the services
are charged to users on a basis other than usage of the services.
Enter "Z" in Column 1, if not applicable.)
(1) (2) (3) (4) (5) (6)
(a) Scientific Computer Operations Z
(b) Business Data Processing Z
(c) Animal Care Facilities A A D A B B
(d) Other Service Centers with annual
operating budgets exceeding $1,000,000
or generating significant charges to
Federally sponsored agreements, either as
a direct or indirect cost. (Specify below;
use a Continuation Sheet, if necessary.)
None Z
FORM CASB DS-2 (rev 10/94) III-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
(1) Category Code: Use code "A" if the service
center costs are billed only as direct costs of final cost objectives;
Code "B" if billed only to indirect cost categories
or indirect cost pools; "C" if billed to both direct
and indirect cost objectives.
(2) Burden Code: Code "A" - center receives
an allocation of all applicable indirect costs; Code "B"
- partial allocation of indirect costs; Code "C" - no
allocation of indirect costs.
(3) Billing Rate Code: Code "A: - billing rates
are based on historical costs: Code "B" - rates are
based on projected costs; Code "C" - rates are based
on a combination of historical and projected costs; Code "D"
- billings are based on the actual costs of the billing period;
Code "y" - other (explain on continuation sheet).
(4) User Charges Code: Code "A" - all users
are charged at the same billing rates; Code "b" - some
users are charged at different rates than other users (explain
on a continuation sheet).
(5) Actual Costs vs. Revenues Code: Code "A"
- billings (revenues) are compared to actual costs (expenditures)
at least annually; Code "B" - billings are compared
to actual costs less frequently than annually.
(6) Variance Code: Code "A" - Annual variances
between billed and actual costs are prorated to users (as credits
or charges); Code "B" - variances are earned forward
as adjustments to billing rate of future periods; Code "C"
- annual variances are charged or credited to indirect costs;
Code "Y" - other (explain on a continuation sheet).
FORM CASB DS-2 (rev 10/94) III-3
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.3.0 Indirect Cost Pools and Allocation Bases
(Identify all of the indirect cost pools established for the
accumulation of indirect costs, excluding service centers, and
the allocation bases used to distribute accumulated indirect costs
to Federally sponsored agreements or similar cost objectives within
each major function or activity. For all applicable indirect
cost pools, enter the applicable Allocation Base Code A through
P, Y, or Z, to indicate the basis used for allocating accumulated
pool costs to Federally sponsored agreements or similar cost objectives.)
Indirect Cost Pools Allocation
Base Code
A. Instruction
___ On Campus D
___ Off Campus Z
___ Other 1/ Z
B. Organized Research
___ On Campus D
___ Off Campus D
___ Other 1/ Z
C. Other Sponsored Activities
___ On Campus D
___ Off Campus Z
___ Other Z
D. Other Institutional Activities 1/
3.4.0 Composition of Indirect Cost Pools. (For
each pool identified under Items 3.1.0 and 3.2.0, describe on
a continuation sheet the major organizational components, subgroupings
of expenses, and elements of cost included.)
3.5.0 Composition of Allocation Bases. (For each
allocation base code used in Items 3.1.0 and 3.3.0, describe on
a continuation sheet the makeup of the base. For example, if
a modified total direct cost base is used, specify which of the
elements of direct cost identified in Part II, Direct Costs, that
are included, e.g., materials, salaries and wages, fringe benefits,
travel costs, and excluded, e.g., subcontract costs over first
$25,000. Where applicable, explain if service centers are included
or excluded. Specify the benefitting functions and activities
included. If any cost objectives are excluded from the allocation
base, such cost objectives and the alternate allocation method
used should be identified. If an indirect cost allocation is
based on Cost Analysis Studies, identify the study and fully describe
the study methods and techniques applied, the composition of the
specific allocation base used, and the frequency of each recurring
study.)
FORM CASB DS-2 (rev 10/94) III-4
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART II - INDIRECT COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.6.0 Allocation of Indirect Costs to Programs That
Pay Less Than Full Indirect Costs. Are appropriate direct
costs of all programs and activities included in the indirect
cost allocation bases, regardless of whether allocable indirect
costs are fully reimbursed by the sponsoring organizations?
A. _x_ Yes
B. ___ No 1/
1/ Describe on a continuation sheet
FORM CASB DS-2 (rev 10/94) III-5
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.1.0 (a) Capital improvements to land are classified as
expenses if they are below $100,000. If capitalized, they are
treated similarly to other capital projects.
Interest is expensed as it is paid. The initial capitalized
interest is included in the construction cost and depreciated
over the life of the asset.
3.1.0 (b) Operation and maintenance expenses are allocated
using two different methods. Utility expenses are allocated based
on an energy study performed during the base year. The study
determines the actual factors of energy consumption in various
classes of space. Other maintenance expenses are allocated based
on square footage.
3.1.0 (e) The University allocates these costs based on
a weighted modified total direct cost.
3.1.0 (f) The University follows the guidelines outlined
in OMB Circular A-21 for allocating library costs.
3.1.0 (g) The University allocates these costs based on
graduate student salaries with consideration given to the dual
role of graduate students.
3.2.0 As of June 30, 1995, the Animal Care facility is
the only service center at CWRU which has an operating size exceeding
$500,000. Per the University's service center policy, service
centers with an operating budget of $500,000 or more are required
to establish their rates using both direct and indirect costs.
FORM CASB DS-2 (rev 10/94) III-6
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.4.0 The following components, subgrouping of expenses,
and elements of cost are included in the University's indirect
cost pools:
Building Depreciation Depreciation on some buildings
is allocated on a room-by-room basis based on net square feet.
Depreciation on other buildings is allocated on a building-wide
basis based on net square feet.
Fixed Equipment Use The University has elected to
take Equipment Use rather than depreciation on the fixed equipment
portion of the sixteen componentized buildings.
Movable Equipment Use The University has elected to
take equipment use rather than depreciation on its movable equipment.
Equipment use is calculated on a room-by-room basis for 21 buildings.
Equipment use for the remaining buildings is calculated on a
building-by-building basis.
Interest Interest payments on funds borrowed from
external sources for the construction of buildings are allocated
on the square foot basis.
Operations and Maintenance Includes all salary and
nonsalary expenses for maintaining University facilities and grounds.
Major nonsalary expenses are utilities and supplies. Utility
usage is determined on a room-by-room basis. The University allocates
non-utility costs to individual buildings and then further allocates
the costs based upon square feet. O&M costs that cannot be
identified with specific buildings are accumulated and then allocated
on a campus-wide basis.
General Administration Includes salaries and nonsalary
expenses for accounting, provost, finance and treasurer, human
resources and other support activities. The University allocates
these costs to all functions of the University based upon a modified
total direct cost basis.
Departmental Administration Includes academic administrative
support and deans offices. The University allocates these costs
on a department-by-department basis. The University has used
a DCE calculation to arrive at the amount of non-salary expenses
in each department.
Sponsored Projects Administration The University allocates
these costs on a weighted modified total direct cost basis.
Library Includes all library expenses of salary and
nonsalary type. The University allocates these costs in accordance
with the guidelines in Circular A-21.
Student Services The University allocates these costs
based upon the allocation of Graduate Student Salaries taking
into account the dual role of students.
FORM CASB DS-2 (rev 10/94) III-7
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.5.0 The allocation base codes used in Item 3.1.0 have
the following cost components and functions. These areas don't
include any cost center costs.
Allocation base L: depreciation/ allowance/interest for buildings,
equipment, capital improvements and interest.
Allocation base Y: all salary and nonsalary expenses of maintaining
facilities are included. Major categories of nonsalary expenses
are utilities and supplies. The functional areas included here
are all plant operations, safety and security.
Allocation base D: includes salaries and wages, fringe benefits,
travel costs, supplies and excludes nonallowable expenses, e.g.,
alcohol, development and fundraising), equipment, subcontract
costs of $25,000, patient care, etc.
Allocation base E: includes salaries and wages, supplies, books,
periodicals and other nonsalary expenses, excluding nonallowable
expenses and equipment. General administration includes all general
support activities of the University, including accounting, provost,
financial services and human resources. Departmental administration
includes academic administrative support services, such as deans'
offices. The sponsored project administration consists of the
research administration office.
The allocation base codes used in Item 3.3.0 have the following
cost components and functions. These areas don't include any
cost center costs.
Allocation base D: On campus instruction includes
all salaries and wages, fringe benefits, supplies, and travel;
it excludes equipment, subcontract costs over $25,000, and nonallowable
expenses. These costs are captured in the account system through
separate budget codes.
Organized research includes all salaries and wages, fringe
benefits, supplies, travel and other nonsalary expenses; it excludes
equipment, renovation, subcontract costs of $25,000 and nonallowable
expenses. These costs are recorded under separate accounting
codes.
FORM CASB DS-2 (rev 10/94) III-8
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
3.5.0 Allocation base D: (continued)
Other sponsored activities include salaries and wages,
fringe benefits, supplies, travel and other nonsalary expenses;
it excludes equipment, nonallowable expenses, subcontract costs
over $25,000, patient care, etc. Again, these costs are tracked
separately on the University's books.
Allocation methods for each cost component are described in 3.4.0
above.
FORM CASB DS-2 (rev 10/94) III-9
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART IV - DEPRECIATION AND USE ALLOWANCES
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Part IV
4.1.0 Depreciation Charged to Federally Sponsored Agreements
or Similar Cost Objectives. (For each asset category listed
below enter a code from A through C in Column (1) describing the
method of depreciation; a code from A through D in Column (2)
describing the basis for determining useful life; a code from
A through C in Column (3) describing how depreciation methods
or use allowances are applied to property units; and Code A or
B in Column (4) indicating whether or not the estimated residual
value is deducted from the total cost of depreciable assets.
Enter Code Y in each column of an asset category where another
or more than one method applies. Enter Code Z in Column (1) only
if an asset category is not applicable.)
Depreciation Useful Property Residual
Asset Category Method Life Unit Value
(a) Land Improvements N/A N/A N/A N/A
(b) Buildings A C A B
(c) Building Improvements A C A B
(d) Leasehold Improvements A C A B
(e) Equipment C D A B
(f) Furniture and Fixtures C D A B
(g) Automobiles and Trucks C D A B
(h) Tools N/A N/A N/A N/A
(i) Enter Code Y on this line if other
asset categories are used and
enumerate on a continuation sheet
each such asset category and the
applicable codes. (Otherwise
enter Code Z.) Z B Z Z
Column (1)-Depreciation Method Code Column (2)-Useful Life Code
A. Straight Line A. Replacement Experience
B. Expensed at Acquisition B. Term of Lease
C. Use Allowance C. Estimated Service Life
Y. Other or more than one method 1/ D. As presented
for use allowance by Office
of Management and Budget
Circular No. A-21
Column (3)-Property Unit Code Column (4)-Residual
Value Code
A. Individual units are accounted for separately A. Residual
value is deducted
B. Applied to groups of assets with similar B. Residual value
service lives is not deducted
Y. Other or more
C. Applied to groups of assets with varying than one method 1/
service lives
Y. Other or more than one method 1/
1/ Describe on a Continuation Sheet
FORM CASB DS-2 (rev 10/94) IV-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART IV - DEPRECIATION AND USE ALLOWANCES
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
4.1.1 Asset Valuations and Useful Lives. Are the
asset valuations and useful lives used in your indirect cost proposal
consistent with those used in the institution's financial statements?
(Mark one.)
A. _x_ Yes
B. ___ No 1/
4.2.0 Fully Depreciated Assets. Is a usage charge
for fully depreciated assets charged to Federally sponsored agreements
or similar cost objectives? (Mark one. If yes, describe the
basis for the charge on a continuation sheet.)
A. _x_ Yes
B. ___ No
4.3.0 Treatment of Gains and Losses on Disposition of
Depreciable Property. Gains and losses are: (Mark the appropriate
line or lines; if more than one are marked, explain on a continuation
sheet.)
A. ___ Excluded from determination of sponsored agreement
costs
B. ___ Credited or charged currently to the same pools
to which the depreciation of the assets was originally charged.
C. ___ Taken into consideration in the depreciation cost
basis of the new items where trade-in is involved.
D. ___ Not accounted for separately but reflected in the
depreciation reserve account.
Y. ___ Other(s) 1/
Z. _x_ Not applicable
4.4.0 Criteria for Capitalization. (Enter [a] the
minimum dollar amount of expenditures which are capitalized for
acquisition, addition, alteration, donation and improvement of
capital assets, and [b] the minimum number of expected life years
of assets which are capitalized. If more than one dollar amount
or number apply, show the information for the majority of your
capitalized assets and enumerate on a continuation sheet the dollar
amounts and/or number of years for each category or subcategory
of assets involved which differs from those for the majority of
assets.)
A. Minimum Dollar Amount $500
B. Minimum Life Years 2 yrs.
4.5.0 Group or Mass Purchase. Are group or mass
purchases (initial complement) of similar items, which individually
are less than the capitalization amount indicated above, capitalized?
(Mark one.)
A. ___ Yes 1/
B. _x_ No
1/ Describe on a Continuation Sheet
FORM CASB DS-2 (rev 10/94) IV-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
4.2.0 For fully depreciated assets, use allowance on buildings,
building improvements, and leasehold improvements are calculated
according to Circular A-21, J.12 (c).
FORM CASB DS-2 (rev 10/94) IV-3
End of Part IV
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART V - OTHER COSTS AND CREDITS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Part V
5.1.0 Method of Charging Leave Costs. Do you charge
vacation, sick, holiday and sabbatical leave costs to sponsored
agreements on the cash basis of accounting (i.e., when the leave
is taken or paid), or on the accrual basis of accounting (when
the leave is earned)? (Mark applicable line[s].)
A. _x_ Cash
B. _x_ Accrual 1/
5.2.0 Applicable Credits. This item is directed
at the treatment of "applicable credits" as defined
in Section C of OMB Circular A-21 and other incidental receipts
(e.g., purchase discounts, insurance refunds, library fees and
fines, parking fees, etc.). (Indicate how the principal types
of credits and incidental receipts the institution receives are
usually handled.)
A. _x_ The credits/receipts are offset against the specific
direct or indirect costs to which they relate.
B. ___ The credits/receipts are handled as a general adjustment
to the indirect pool.
C. ___ The credits/receipts are treated as income and
are not offset against costs.
D. Combination of methods 1/
Y. Other 1/
FORM CASB DS-2 (rev 10/94) V-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
5.1.0 Hourly staff (non-exempt) leave costs are charged
to sponsored agreements on the accrual basis. All other employees
leave costs are charged on the cash basis.
FORM CASB DS-2 (rev 10/94) V-2
End of Part V
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART VI - DEFERRED COMPENSATION AND INSURANCE COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
Instructions for Part VI
This part covers the measurement and assignment of costs for
employee pensions, post retirement benefits other than pensions
(including post retirement health benefits) and insurance. Some
organizations may incur all of these costs at the main campus
level or for publication situations at the governmental unit level,
while others may incur them at subordinate organization levels.
Still others may incur a portion of these costs at the main campus
level and the balance at subordinate organization levels.
Where the segment (reporting unit) does not directly incur such
costs, the segment should, on a continuation sheet, identify the
organizational entity that incurs and records such costs. When
the costs allocated to Federally sponsored agreements are material,
and the reporting unit does not have access to the information
needed to complete an item, the reporting unit should require
that entity to complete the applicable portions of this Part VI.
(See Item 4, Page (i), General Instructions.)
6.1.0 Pension Plans
6.1.1 Defined-Contribution Pension Plans. Identify the
types and number of pension plans whose costs are charged to Federally
sponsored agreements. (Mark applicable line[s] and enter number
of plans.)
Type of Plan Number of Plans
A. Institution employees participate in
State/Local Government Retirement Plan(s)
B. x Institution uses TIAA/CREF plan or other
defined contribution plan that is managed
by an organization not affiliated with the
institution. one
C. Institution has its own Defined-Contribution
Plan(s) 1/
6.1.2 Defined-Benefit Pension Plan. (For each defined-benefit
plan, other than plans that are part of a State or Local government
pension plan, describe on a continuation sheet the actuarial cost
method, the asset valuation method, the criteria for changing
actuarial assumptions and computations, the amortization periods
for prior service costs, the amortization periods for actuarial
gains and losses, and the funding policy.)
6.2.0 Post Retirement Benefits Other Than Pensions (including
post retirement health care benefits) (PRBs). Identify on
a continuation sheet all PRB plans whose costs are charged to
Federally sponsored agreements. For each plan listed, state the
plan name and indicate the approximate number and type of employees
covered by each plan.)
Z. Not Applicable
FORM CASB DS-2 (rev 10/94) VI-1
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
PART VI - DEFERRED COMPENSATION AND INSURANCE COSTS
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
6.2.1 Determination of annual PRB costs. (On a continuation
sheet, indicate whether PRB costs charged to Federally sponsored
agreements are determined on the cash or accrual basis of accounting.
If costs are accrued, describe the accounting practices used,
including actuarial cost method, the asset valuation method, the
criteria for changing actuarial assumptions and computations,
the amortization periods for prior service costs, the amortization
periods for actuarial gains and losses, and the funding policy.)
6.3.0 Self-Insurance Programs (Employee Group Insurance).
Costs of the self-insurance programs are charged to Federally
sponsored agreements or similar cost objectives: (Mark one)
A. _x_ When accrued (book accrual only)
B. ___ When contributions are made to a nonforfeitable
fund
C. ___ When contributions are made to a forfeitable fund
D. ___ When the benefits are paid to an employee
E. ___ When amounts are paid to an employee welfare plan
Y. ___ Other or more than one method 1/
Z. ___ Not applicable
6.4.0 Self-Insurance Programs (Worker's Compensation,
Liability and Casualty Insurance)
6.4.1 Worker's Compensation and Liability. Costs of such
self-insurance programs are charged to Federally sponsored agreements
or similar cost objectives: (Mark one)
A. ___ When claims are paid or losses are incurred (no
provision for reserves)
B. _x_ When provisions for reserves are recorded based
on the present value of the liability.
C. ___ When provisions for reserves are recorded based
on the full or undiscounted value, as contrasted with present
value, of the liability.
D. ___ When funds are set aside or contributions are made
to a fund.
Y. ___ Other or more than one method 1/
Z. ___ Not applicable
6.4.2 Casualty Insurance. Costs of such self-insurance
programs are charged to Federally sponsored agreements or similar
cost objectives: (Mark one.)
A. ___ When losses are incurred (no provision for reserves)
B. _x_ When provisions for reserves are recorded based
on replacement costs.
C. ___ When provisions for reserves are recorded based
on reproduction costs new less observed depreciation (market value)
excluding the value of land and other indestructibles.
D. ___ Losses are charged to fund balance with no charge
to contracts and grants (no provision for reserves)
Y. ___ Other or more than one method 1/
Z. ___ Not applicable
1/ Describe on a Continuation Sheet.
FORM CASB DS-2 (rev 10/94) VI-2
8/10/96
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS
CONTINUATION SHEET
NAME OF REPORTING UNIT:
Case Western Reserve University
Item No. Item Description
6.1.2 The University has benefit plans covering substantially
all of its full time employees. Under the University's defined
contribution plans, annual contributions for the insured annuity
plans for faculty and key administrative personnel are determined
principally as a fixed percentage of annual compensation and are
funded currently. Other employees have a defined benefit plan
which provides for benefits based on length of continuous service
and a fixed percentage of annual compensation. The University's
policy is to fund at least the minimum amount required by ERISA.
6.2.0 In addition to the University's retirement plans,
University retirees and their spouses are eligible to benefit
from the University's employee tuition plan for life. Retirees'
dependents are eligible for eight years after retirement of the
employee. The University believes the post-retirement tuition
benefit does not result in an additional expense to the University.
As such, no accrued liability has been reported in the balance
sheet for the retirees tuition benefit program. In addition,
retirees are eligible to participate in the University's medical
and dental health plans and are required to pay in full for enrollment
in those plans. It is not practical to determine the present
value of the University's obligation to provide retirees with
the University's group health rate without incurring significant
additional costs. Furthermore, there is no evidence that the
retiree's portion of the health plans causes an increase in the
overall medical and dental plan rates.
FORM CASB DS-2 (rev 10/94) VI-3
End of Part VI
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