Certified Research Administrator Practice Exam

What guide assists hospitals in establishing cost principles for indirect costs related to grants?

1. CFR 200.103

2. OMB Circulars

3. OASC-3

4. Medicare Cost Report

The correct answer is: OASC-3

The correct answer is OASC-3, which stands for "Office of Management and Budget (OMB) Circular A-21 - Cost Principles for Educational Institutions." This guide specifically addresses the principles related to costs incurred by educational institutions, which can include hospitals, especially those that are affiliated with universities or research institutions. OASC-3 provides a framework for determining the allowability, allocability, and reasonableness of indirect costs associated with federal awards. It outlines how institutions can properly allocate their indirect costs to grants, ensuring compliance with federal guidelines. By utilizing the principles laid out in OASC-3, hospitals can consistently apply cost principles when accounting for indirect costs, which is crucial for effective financial management and ensuring grant compliance. The other options relate to different aspects of indirect costs and regulations but do not primarily focus on hospitals establishing cost principles for indirect costs related to grants. For instance, CFR 200.103 pertains to overarching requirements for uniform grants management but is not specific to healthcare settings. OMB Circulars encompass a wide range of federal guidance, but may not specifically target the needs of hospitals. The Medicare Cost Report is specific to the reimbursement mechanisms and reporting requirements for hospitals under Medicare but does not serve as a comprehensive guide for establishing cost principles