Cost Principles
Stanford policy and federal regulations such as the Uniform Guidance state fundamental principles of research administration.
An expense qualifies as a direct cost to a sponsored project only when it meets the following four principles.
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Allowable: Allowable and unallowable costs are defined by federal regulations and in the terms of specific awards
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Allocable: Only those costs that BENEFIT a project may be charged to that project
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Reasonable: Costs must reflect what a prudent person would pay
- Consistent: Costs must be handled consistently across the university by following Stanford policy
Everyone that authorizes expenses at Stanford for any purpose must confirm prior to approving a transaction that the expenditures are:
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reasonable and necessary
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consistent with established Stanford policy and practices, as well as a sponsor's terms & conditions
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applicable to the work of Stanford, which includes instruction, research, and public service
Created: 12.21.2020
Updated: 03.23.2021