Cost Sharing

Effective Date: December 1, 2006

Executive Summary

All of the resources necessary to carry out a sponsored project funded by a governmental agency, private foundation, or industrial or other sponsor ("Sponsored Project") should normally be budgeted on and ultimately charged to that project. There are occasions, however, when some of the costs of carrying out a Sponsored Project are to be funded from other sources, whether required by the sponsor as a condition of the award (Mandatory Cost Sharing), not required by the sponsor but nevertheless promised by the Principal Investigator to the sponsor (Voluntary Committed Cost Sharing), or not required by the sponsor and not promised by the Principal Investigator, but nevertheless charged to a funding source other than the Sponsored Project (Voluntary Uncommitted Cost Sharing).

The funding source of Mandatory Cost Sharing and Voluntary Committed Cost Sharing must be identified and approved by the person with authority over those funds at the time the commitment is made to the sponsor. Further, those costs must be readily identifiable in the University's financial records to auditors and others in order to document that those cost sharing commitments have been met and are properly accounted for. Voluntary Uncommitted Cost Sharing does not have to be identified, nor does it have to be accounted for.

Reason(s) for the Policy

To provide guidance to Principal Investigators and others responsible for the administration of Sponsored Projects on the requirements for accounting for and documenting cost sharing.

Primary Guidance to Which this Policy Responds

OMB Circular A-110, which requires that all contributions, including cash and third party in-kind contributions, be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria:

• Are verifiable from the recipient's records;
• Are not included as contributions for any other federally-assisted project or program.
• Are necessary and reasonable for proper and efficient accomplishment of project or program objectives;
• Are allowable under the applicable cost principles;
• Are not paid by the federal government under another award, except where authorized by federal statute to be used for cost sharing or matching;
• Are provided for in the approved budget when required by the federal awarding agency; and
• Conform to other provisions of Circular A-110, as applicable.

Revision History

Not Applicable

Responsible University Office & Officer

Office of the Controller
Cheryl Ross, Controller

Who is Governed by This Policy

Faculty and Staff who are responsible for authorizing, processing and monitoring charges to Sponsored Projects.

Who Should Know This Policy

1. All persons governed by this Policy [see above]
2. Departmental Administrators and other departmental staff
3. Deans and Departmental Chairs
4. Office of Research Administration staff
5. Office of the Controller staff

Exclusions & Special Situations

None. This policy applies to cost sharing on all sponsored projects, whether awarded by governmental or non-governmental sponsors.