Business Policies

Policy 12-5: Cost Sharing Requirements for Sponsored Research Projects

Issued: 7-05
Revised: 3-06
 

I. Purpose

To establish a college policy documenting guidelines, resources, and approval procedures for cost sharing requirements of sponsored research projects.

II. General Cost Share Overview

Cost sharing and matching are terms used to refer to the share of sponsored project costs which are borne by sources other than the sponsor’s funds awarded in support of the project.

Cost sharing should be included only where absolutely required by the sponsor. All matching and cost sharing resources must meet the following general criteria:

They must be verifiable from the recipient’s accounting records;

They must be necessary and reasonable for the proper and efficient accomplishment of the proposed project objectives, as documented in the proposal. For example, cost sharing or matching must be a direct service, such as percentage of faculty/staff time, donated computer lab/network/Website costs or time, or a contributed cash outlay from the College;

They must be allowable under applicable federal cost principles (OMB Circular A-21), in the case of federal funding only. This is true even if the asset is derived from a third party contribution;

They may not be paid by the federal government under another award in the current or prior project period; and

They must be provided for in the approved project budget as documented on the Grant Approval Form which you can find on the Sponsored Research web site.

If cost sharing is other than the PI’s effort explicitly stated in the proposal or other in kind contributions, the responsible College official(s) (see Section III) must guarantee the cost sharing commitment in writing. Once an award is made, all cost sharing (in kind & cash match) commitments are considered mandatory and represent binding obligations for the College, School, or Department.

Waiver or reduction of indirect costs (facilities and administration costs) entirely even where acceptable by the sponsor is not an allowable or an appropriate form of cost sharing. The U.S. Department of Education strictly prohibits the use of waived indirect cost as cost sharing. As stated in bullet # 2 above, cost sharing is a valuation of direct costs that are necessary and reasonable for the performance of the proposed project. Because requirements for cost sharing vary widely, it is important to consult with the Office of Grants Management for individual agency/sponsor requirements.

For cash matches of $5,000 to $15,000, PIs will need to meet with their Dean or Department depending on the availability of funds and ability to match, as well as the process to request funds. Non academic programs should consult with the Office of Grants Management for potential cash matching requirements. If the cash match is to be applied in one or more succeeding years, the funds are approved by the Budget Committee as part of the College’s annual budgeting process that occurs during winter term. Contact the Budget Office for more details about the process and preparation needed for approval form the Budget Committee.

III. Responsibility

Amounts Protocol Documentation
Type I: Cost Sharing - In Kind:
In Kind PI’s are encouraged to work with the Office of Grants Management to identify in kind cost sharing resources or to leverage other non-federal soft money resources, whenever possible.  
Type II: Cost Sharing - Cash Match
< and/or = $5,000 Must be negotiated by the PI with the Dean and are the responsibility of the Department and/or School Grant Approval Form, Project Budget, and Budget Justification
>$5,000 - $15,000 Must be negotiated between the PI and Dean with the Provost. Cash matches of this amount must be an institutional priority and allocated over the succeeding fiscal year. Documentation will include the amount of cash match, source, and approximate date when needed, as detailed on the Grant Approval Form, Project Budget, and Budget Justification.
> $15,000
Must be negotiated between the PI and Dean with the President’s VP Group and the Budget Committee. Cash matches of this amount must be an institutional priority and allocated over the succeeding fiscal year.
Documentation will include the amount of cash match, source, and approximate date when needed, as detailed on the Grant Approval Form, Project Budget, and Budget Justification.


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