Purple Sheep CPE™

MODULE TITLE

Purple Sheep CPE™ — Institutional Funding & Proposal Development (Pre-Award) Module 3: Cost Allowability, Allocability & Financial Judgment

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PROGRAM IDENTIFICATION

Purple Sheep CPE™
Institutional Funding & Proposal Development (Pre-Award) Series™
1.0 CPE Contact Hour | Self-Paced Professional Education

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MODULE OVERVIEW

Cost determination is not a calculation. It is an institutional judgment point with direct implications for compliance, audit exposure, and financial integrity.

Institutions are responsible for ensuring that all proposed and incurred costs meet established standards for allowability, proper assignment to the project, and reasonableness within the regulatory environment. These determinations are not procedural. They require consistent application of institutional judgment supported by documentation and internal controls.

This module provides a structured, risk-based examination of how institutions evaluate costs within sponsored programs. It emphasizes disciplined financial judgment, documentation defensibility, and the identification of high-risk cost scenarios that create exposure during sponsor review.

Institutional exposure rises when cost decisions are inconsistent, unsupported, or based on informal interpretation rather than governed standards. These weaknesses create recurring risk because cost determinations often appear compliant at the point of entry but fail under audit scrutiny.

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KEY AREAS OF FOCUS

This module examines:

• Foundations of cost allowability, proper assignment to the project, and reasonableness
• Institutional application of financial judgment in sponsored cost decisions
• Documentation standards required to support defensible cost determinations
• High-risk cost scenarios and escalation triggers
• Institutional risk exposure during sponsor review and audit

These areas represent critical decision points where financial compliance is either established or compromised.

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PROGRAM STRUCTURE & INSTRUCTIONAL DESIGN

This module is structured to reinforce disciplined financial judgment and institutional control system alignment.

The module includes:

• Scenario-based analysis reflecting real institutional cost decision challenges
• Structured evaluation of cost determination risk points and documentation gaps
• Applied learning activities designed to test financial judgment and defensibility
• Knowledge validation through formal assessment

Topic structure follows the standardized Purple Sheep CPE™ model, including required engagement activities and a formal knowledge check to support audit defensibility.

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REGULATORY & COMPLIANCE ALIGNMENT

This module aligns with established regulatory and internal control frameworks, including:

• 2 CFR 200 (Uniform Guidance)
• ICH Good Clinical Practice (E6)
• Applicable FDA regulations governing sponsored and clinical activity
• COSO Internal Control Framework principles

Content reflects how cost principles are interpreted, applied, and validated within institutional environments.

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LEARNING OBJECTIVES

Upon completion of this module, participants will be able to:

• Evaluate institutional exposure created through cost determination decisions
• Assess whether cost determinations meet regulatory standards and institutional expectations
• Apply structured financial judgment to complex sponsored cost scenarios
• Identify documentation gaps that weaken cost defensibility
• Recognize high-risk cost conditions requiring escalation or additional review
• Analyze how cost decisions withstand sponsor review and audit scrutiny

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COMPLETION & AUDIT VERIFICATION

Completion of this module requires:

• Full review of all instructional content
• Completion of required engagement activities
• Successful completion of the knowledge check assessment

Participant progression and completion data are recorded to support institutional documentation and audit verification requirements.

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SERIES CONTINUITY

This module builds on financial stewardship systems by defining how cost decisions are evaluated, justified, and defended within institutional frameworks.

It supports subsequent modules addressing:

• Subrecipient governance and third-party accountability
• Documentation systems and financial compliance controls
• Award closeout governance and institutional exposure

The strength of financial judgment at this stage directly influences audit outcomes, institutional credibility, and long-term compliance sustainability.

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CPE STATEMENT

This module, combined with required engagement activities, represents 1.0 CPE contact hour.

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CREDENTIAL ALIGNMENT

This module is designed to support continuing education and professional development aligned with:

• Research Administrators Certification Council (RACC) expectations (CRA, CPRA, CFRA)
• Clinical research compliance and certification domains, including the Certified Clinical Research Professional (CCRP) credential administered by the Society of Clinical Research Associates (SOCRA)
• Clinical research competencies aligned with ACRP certification frameworks
• Internal audit and compliance competencies aligned with CIA principles

Module Access & Availability

Access to individual modules is provided for 90 days from the date of enrollment.

Individual modules are offered as part of the initial launch phase through December 31, 2026. Beginning January 2027, Purple Sheep CPE™ will transition to a series-based model designed to support deeper learning, stronger outcomes, and institutional alignment.