Some Federal regulations affecting sponsored project apply equally to non-Federally funded projects. This can arise through several mechanisms.

On the business side:

The business community recognizes a number of policies and procedures as "Generally Accepted Accounting Practices".

• Organizations such as the Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) address such standards.
• University finance areas rely on the National Association of College and University Business Officers (NACUBO) to assure that business practices recognize some of the unique needs of Universities.
• OMB's Circular A-21 which governs sponsored project agreements between Government Agencies and Universities provides that: "Cognizant Federal agencies involved in negotiating facilities and administrative (F&A) cost rates and auditing should assure that institutions are generally applying these cost accounting principles on a consistent basis." A-21 also includes a appendix outlining "Cost Accounting Standards for Educational Institutions." OMB includes an independent body called the Cost Accounting Standards Board (CASB) which deals with the standards that must be applied. A-21requires the filing of an institutional certification of its business practices (DS-2).

In non-business areas, such as those covered by assurances of ethical practices in research (e.g., humans, laboratory animals), most universities extend the principles embodied in such assurances to all sponsored projects.

How are F&A (Indirect) Cost Rates determined?
See F&A Rates Basics