Grants & Contracts Financial Administration
Cost-Sharing on Sponsored Projects
Cost-Sharing is the financial support contributed by universities to sponsored projects. Often, sponsored programs require that sponsored grant funds be matched proportionately with non-sponsored or other sponsored funds or that the grantee participate to some extent in the cost of the project. Cost-Sharing and matching represent that portion of the project or program costs not borne by the sponsoring agency.
The policy of the university is to assume a cost-sharing commitment only when required by the sponsor or by the competitive nature of the award and then to cost share only to the extent necessary to meet the specific requirements of the sponsored project. The cost-sharing commitment must be included:
- On the Routing Sheet in Part 4
- In the proposal budget form
- Approval of the responsible university representatives is shown on the Routing Sheet for the proposal/acceptance
Types of Cost-Share
- Mandatory
- Voluntary
Methods of Cost-Share
- Project costs funded from other sponsored programs
- In-kind contributions donated by other sponsors
- Project costs funded by the university for the benefit of the project
- Waived indirect costs
- Unfunded indirect costs
Compliance with Cost Accounting Standards (CAS)
Valuation of Third-Party In-Kind Contributions
The rule of valuation of a third-party in-kind contribution is "what it would have cost if the university had paid for the item or service itself. Special valuation of third-party in-kind contributions for:
- Volunteer services
- Employees of other organizations
- Donated and loaned equipment or space
- Donated equipment, buildings and land
See Exhibit B of Policy 1-0113
Recognition of Cost-Share Requirements
Neither the university's incurred costs nor third-party contributions count toward satisfying matching or cost-sharing requirements unless they meet all of the following criteria:
- Verifiable from the university's records
- Not used as matching or cost-sharing for any other sponsored programs
- Necessary and reasonable for proper and efficient accomplishment of project objectives
- Allowable under Uniform Guidance
- Provided for in the the approved budget
- Incurred during the project period of the grant or contract
Excluded or Unallowable Items for Cost-Share
Costs that are included in the University's indirect cost rate proposal usually cannot be used for cost-share or matching
Procedures
- Approval of Cost-Share
Any reduction of indirect costs as cost-sharing must be recommended by the Dean or Director and approved by the Vice President of Research. Signatures on the routing sheet whereon cost-sharing is fully explained, including the source of funds, will satisfy this requirement.
- Documentation of Cost-Share
Documentation of cost-share is the responsibility of the department or unit committing the cost-share. Departments/Research Units will be responsible for transferring funds to be used for cost-share into a separate project fund that has been designated as the cost-share fund.
- Equipment Used as Cost-Share
Equipment used as cost-share must be identified in the movable inventory system so the equipment can be identified for indirect cost rate proposal preparation. This is especially critical when equipment purchased on a grant other than the grant which requires cost-share is used as cost-share
- Building Used as Cost-Share
When a building is used as cost-share, only the depreciation on the building during the performance of the sponsored project may be used as cost-share. The entire cost of the building may not be used as cost-share for the sponsored project.
For more information click here to review Policy & Procedure 1-0113 (Cost-Sharing in Sponsored Research and Service Projects)