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Financial Management: CASB--Educational Institutions

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Report Type Reports and Testimonies
Report Date Dec. 17, 1992
Report No. AFMD-93-24R
Subject
Summary:

GAO reviewed the Cost Accounting Standards Board's (CASB) proposed rulemaking removing certain exemptions for educational institutions receiving federal negotiated contracts. GAO noted that: (1) in response to its recommendation, CASB was requiring educational institutions to file periodical statements disclosing their cost accounting practices and to follow 4 of 19 cost accounting standards; (2) the filing requirements would significantly reduce the costs of responding to auditors' recurring questions about institutions' cost accounting practices, necessary auditors' testing, and disagreements between auditors and the institutions; and (3) requiring institutions to follow the 15 remaining standards could place an unnecessary accounting burden, since educational institutions must already follow certain standards in accounting for federal grants.

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