[Auto-generated transcript. Edits may have been applied for clarity.]
Welcome and thank you for joining.

Today we're going to talk about cost share and sponsored projects. Including what it is,

why it matters, and how to handle it correctly from the proposal stage through closeout.

By the end of this module, you should be able to define the types of cost share,

determine when cost share is appropriate, and explain the policy and timing rules that apply.

We'll also review key roles involved, including that of the Division of Sponsored Programs,

the Grant Accounting Office, the principal investigator, and the department administrator.

Each of these partners plays an important role in keeping the project compliant and well-documented.

Cost sharing is a portion of the total project cost contributed by the university and not reimbursed by the sponsor.

This may include: salaries, fringe benefits, general expenses,

F&A and third-party contributions.

The policy goals are straightforward.

Cost sharing should only incur when mandated by the sponsor

and it must be recorded and reported directly in the university accounting system and to the sponsor.

Now let's discuss the types of cost sharing. First is mandatory cost sharing.

This is cost sharing that's required by the sponsor as a condition of the award.

It's usually included in the proposal  budget and budget justification. It also laid out in the award terms and conditions.

Next up is voluntary committed cost sharing, which is cost sharing beyond what the sponsor requires.

And, it becomes a requirement of the award if the proposal is funded.

Typically this is found in the budget justification.

Both mandatory and voluntary committed cost sharing must be tracked in the university system, as it is a requirement of the award.

Voluntary uncommitted cost sharing, on the other hand, is effort or supplies that are committed beyond what was supplied in the proposal budget and budget justification.

It does not need to be recorded in the accounting system of the university.

Cost sharing is outlined in federal rules.

It can be found under two CFR 200.306.

Cost sharing must be verifiable, necessary and reasonable, allowable, and not charge to another federal award.

Voluntary committed cost sharing is not expected under federal research grants and

the University of Iowa strongly discourages voluntary uncommitted cost share.

Also unrecovered indirect may potentially be considered as part of cost sharing,

but only with prior approval from the federal agency or pass-through entity.

At the proposal stage.

Cost share should be clearly identified as it is required as part of the Notice of Funding Opportunity,

also known as a NOFO.

If cost sharing is included but not required, it can create questions and must be handled differently.

The proposal routing form must clearly reflect the cost share commitment

and the approved routing form must be in place before the proposal can be submitted.

Other documentation may be needed before submission to the sponsor.

Cost share account requests should be submitted to the Grant Accounting Office within 30 days

after the AAAN is sent to the PI and the Department.

To request a new cost share account.

Departments should use the request for General Ledger ChartFields and Whokeys application, which can be found in self-service.

Please keep in mind that cost sharing accounts will have a grant program ID that begins with the number three.

After the award begins, Grant Accounting will monitor expenditures on both the cost share account and the grant or contract account.

Both these resources should be spent as the project progresses.

GAO will also report cost share as well as the regular expenditures to the sponsoring agency, as required in the award terms and conditions.

Now let's talk about allowable expenses.

Allowable cost share expenses include:

faculty, staff, and student effort along with the associated fringe benefits, supplies, equipment, travel, and tuition.

Any costs that are charged to the cost share must also be allowable on the prime award.

If the sponsor restricts certain costs, those costs also are restricted or unallowable on the cost share account.

Now let's talk about unallowable expenses. Some items should not be used for cost sharing.

These include existing university owned equipment, university facilities, and amounts in excess of the salary cap.

Cost sharing also cannot be paid from federal award funds.

In rare cases, a non-federal award may be allowable as cost share with prior approval from the sponsor.

Now let's take a look at documentation and reporting.

Third-party contributions must be documented, valued appropriately, and approved by the PI.

As it relates to subrecipients.

Cost sharing must be documented on their invoices and if they are not showing us their cost share amounts,

we may withhold their final payment until those requirements are met.

Please keep in mind GAO is responsible for reporting cost share to the sponsor for

both ourselves and our subrecipient, as required in the award terms and conditions.

This slide provides links to additional resources.

The DSP and GAO websites are your primary hub for policies, guidance, and tools related to sponsor projects.

Please keep in mind that what we covered today is an overview.

If you encounter specific situations or gray area, these resources are a great first stop and you can always reach out to DSP or GAO for help.

As we wrap up, I want to emphasize that your role, whether you work in the central office, in the department,

or as part of a research team.

It is critical to safeguard our research enterprise.

Grant Accounting is here to support you.

If you have any questions, encounter a tricky scenario, or just want a second set of eyes, please don't hesitate to contact us.

Thank you for all that you do every day to support a compliant, high quality research environment here at the University of Iowa.