Circular A-21 establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. The principles deal with the subject of cost determination, and make no attempt to identify the circumstances or dictate the extent of agency and institutional participation in the financing of a particular project. The principles are designed to provide that the Federal Government bear its fair share of total costs, determined in accordance with generally accepted accounting principles, except where restricted or prohibited by law. Agencies are not expected to place additional restrictions on individual items of cost. Provision for profit or other increment above cost is outside the scope of this Circular.

Circular A-21 covers topics including, but not limited to:

• Reasonableness, allocability, and allowability of research related costs
• Identification of unallowable costs
• Effort Reporting
• Identification and assignment of F&A costs
• Calculation of F&A cost rates

Circular A-110 sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations. The standards in Circular A-110 are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided in Circular A-110, the provisions of the statute shall govern.

Circular A-110 covers topics including, but not limited to:

• Pre-award requirements, such as forms for applying for Federal assistance
• Post-awards requirements, such as financial and program management
• After-the-award requirements, such as close-out procedures