The purpose of this policy document is to ensure compliance with Federal costing and Cost Sharing requirements as set forth in OMB Circulars A-21, A-110 and Clarification of A-21 Treatment of Voluntary Uncommitted Cost Sharing. The document establishes procedures for recording cost shared expenditures in the University's accounting system. The policies described in this document are effective for new and renewal awards received on or after July 1, 2003. Each department has the option to establish cost sharing accounts for existing awards.
Definition of Cost Sharing
Cost sharing is that portion of the total project cost of a sponsored agreement that is contributed by the University and/or other non-federal sources but not reimbursed by the sponsor. It may include salaries, fringe benefits, general expenses, F&A (indirect) costs or third party contributions.
Cost Sharing Commitment on Proposals and Awards
When a proposal includes cost sharing, it must have the approval of the unit that provides the resources. The Principal Investigator (PI) is responsible for ensuring that:
- At least 1% of PI effort is devoted to a research project and committed in the proposal, whether paid or not. This requirement does not apply to: equipment, dissertation, training grants or other awards intended as "student augmentation."
- Funds are identified for cost sharing at the time the proposal is submitted.
Exactly one cost sharing account can be associated with one grant account, but no cost sharing account can be associated with more than one grant account. - Third party contribution is properly documented.
- Allowable, allocable, necessary and reasonable costs are incurred during the effective date of the award and are timely and accurately charged to the appropriate cost sharing account.
- Cost sharing cannot be paid from federal funds unless specifically authorized.
- During the life of the project, prior approval from the federal sponsor will be requested when effort committed by the PI is to be decreased by 25% or more. This applies to changes in committed levels of effort to be charged directly to the project, as well as to that which will be cost shared on the project.
Last Updated: 6/20/06