COST SHARINGCOST SHARING

Colorado State University Colorado State University Sponsored ProgramsSponsored Programs

Mary AtellaMary AtellaBetty EckertBetty Eckert

Candyce JefferyCandyce JefferyCarmen MoralesCarmen Morales

http://www.research.colostate.edu/policy/

Cost Sharing / MatchingCost Sharing / Matching

Sharing of project costs by sources Sharing of project costs by sources other than the Sponsor’s funds other than the Sponsor’s funds awarded in support of a projectawarded in support of a project

More than a “token amount” (i.e. 1% More than a “token amount” (i.e. 1% required by NSF)required by NSF)

Normally on grants or cooperative Normally on grants or cooperative agreements, NOT contractsagreements, NOT contracts

Types of costs: any allowable direct Types of costs: any allowable direct costs that benefit the project and are costs that benefit the project and are verifiableverifiable

Cost Sharing CriteriaCost Sharing Criteria A-110 A-110 (now also called 2 CFR 215)(now also called 2 CFR 215) states that states that

cost sharing must becost sharing must be::– verifiable in recipient’s recordsverifiable in recipient’s records– not included as contribution for other not included as contribution for other federal projectsfederal projects– necessary and reasonable for projectnecessary and reasonable for project– allowable under applicable cost principlesallowable under applicable cost principles– not paid by the Federal Government on not paid by the Federal Government on another award unless approvedanother award unless approved– provided for in approved budget when provided for in approved budget when required by the federal awarding agencyrequired by the federal awarding agency

Types of Cost SharingTypes of Cost Sharing

Mandatory Cost ShareMandatory Cost Share– Required by Sponsor as condition of awardRequired by Sponsor as condition of award

Voluntary Budgeted Cost ShareVoluntary Budgeted Cost Share– Not required by the Sponsor, but becomes a legal Not required by the Sponsor, but becomes a legal

requirement when included in Proposal budgetrequirement when included in Proposal budget– Strongly discouraged by University policyStrongly discouraged by University policy

Unbudgeted Voluntary Cost ShareUnbudgeted Voluntary Cost Share– Not quantified in the proposalNot quantified in the proposal– Reflects faculty effort during the academic year Reflects faculty effort during the academic year – No separate account is needed for trackingNo separate account is needed for tracking

PI annual salary is $120,000PI annual salary is $120,000 PI proposes (commits) 50% effort to projectPI proposes (commits) 50% effort to project Budget shows PI salary at $30,000Budget shows PI salary at $30,000 PI certifies 50% to the projectPI certifies 50% to the project

$120,000 x 50% = $120,000 x 50% = $60,000$60,000

Less paid from grant =Less paid from grant = ($30,000)($30,000)

Cost Share = Cost Share = $30,000 $30,000

Cost share must be documented.Cost share must be documented.

Voluntary Budgeted Cost ShareVoluntary Budgeted Cost Share

Unbudgeted Voluntary Cost ShareUnbudgeted Voluntary Cost Share

PI annual salary is $120,000PI annual salary is $120,000 PI budgets (commits) 50% effort ($60,000) to PI budgets (commits) 50% effort ($60,000) to

the projectthe project PI certifies 60% effort to the projectPI certifies 60% effort to the project

The 10% effort over and above the budget The 10% effort over and above the budget (commitment) is voluntary uncommitted cost (commitment) is voluntary uncommitted cost share and does not require documentationshare and does not require documentation

Leveraging FundsLeveraging Funds Leveraging vs. Cost SharingLeveraging vs. Cost Sharing

- - Leveraging includes other associated programsLeveraging includes other associated programs

related to proposed activityrelated to proposed activity- May have separate scope of work, performance- May have separate scope of work, performance

period, and budgetperiod, and budget- Described in narrative without detailed budget- Described in narrative without detailed budget

information, if possible; NOT shown as costinformation, if possible; NOT shown as cost sharing or matchingsharing or matching

- Include statement in proposal to clarify- Include statement in proposal to clarify leveraging is NOT cost sharing and will not beleveraging is NOT cost sharing and will not be documented as suchdocumented as such

Accounting for Cost SharingAccounting for Cost Sharing

Creation of Dedicated (Companion) Creation of Dedicated (Companion) Accounts Accounts

- - Allows for separate/accurate documentationAllows for separate/accurate documentation

of contributed costs for inclusion on financialof contributed costs for inclusion on financial

reports reports

- - Linked to sponsored project accountLinked to sponsored project account

Creation of object codes within accountsCreation of object codes within accounts

CSU’s Process for Creating CSU’s Process for Creating Dedicated AccountsDedicated Accounts

Internal forms:Internal forms: – Proposal Approval Form (SP-1) (pre-award)Proposal Approval Form (SP-1) (pre-award)– Institutional Commitment form (pre-award)Institutional Commitment form (pre-award)– Request for Dedicated Account FormRequest for Dedicated Account Form

(post-award)(post-award)

No account needed if only cost sharing No account needed if only cost sharing F&AF&A

Special Documentation in lieu of Special Documentation in lieu of Dedicated AccountsDedicated Accounts

Special documentation is needed at pre-Special documentation is needed at pre-

and post-award stages for:and post-award stages for:

““Third party” contributions, cash or in-Third party” contributions, cash or in-kindkind

Other institutional contributionsOther institutional contributions– land, equipment, donated services, tuition land, equipment, donated services, tuition

differential, etc.differential, etc.

Unrecovered F&AUnrecovered F&A

Use of unrecovered F&A requires prior Use of unrecovered F&A requires prior approval of Federal sponsorapproval of Federal sponsor

No separate account needed to No separate account needed to document unrecovered F&A onlydocument unrecovered F&A only

Reported to sponsor on financial reports Reported to sponsor on financial reports when mandatorywhen mandatory

NSF Cost ShareNSF Cost Share

New policy on Cost Sharing: New policy on Cost Sharing:

– 1% statutory requirement1% statutory requirement– no longer required on unsolicitedno longer required on unsolicited

proposalsproposals

NIH Salary CapNIH Salary Cap

Limitation of Salary RateLimitation of Salary Rate– Legislatively mandatedLegislatively mandated

University DocumentationUniversity Documentation– via dedicated cost share accountvia dedicated cost share account

NIH Salary Cap--ExampleNIH Salary Cap--Example

Individual with 50% effort per monthIndividual with 50% effort per month

Annual base salaryAnnual base salary = $190,000 or $15,833.33/month= $190,000 or $15,833.33/month

Sponsor salary limitSponsor salary limit = $180,100 or $15,008.33/month= $180,100 or $15,008.33/month

University shareUniversity share= $ 9,900 or $825/month= $ 9,900 or $825/month

Actual salaryActual salary = $ 7.916.67 for 50% effort/month= $ 7.916.67 for 50% effort/month

Sponsor shareSponsor share = $ 7,504.17 for 47% effort/month= $ 7,504.17 for 47% effort/month

Univ. shareUniv. share = $ 412.50 for 3% effort/month= $ 412.50 for 3% effort/month

USDA Joint Venture Agreements (JVA)USDA Joint Venture Agreements (JVA) JVAs require cost sharing (80% Sponsor/20% JVAs require cost sharing (80% Sponsor/20%

Recipient)Recipient) F&A is not allowed for State Cooperative F&A is not allowed for State Cooperative

InstitutionsInstitutions USDA will allow unrecovered F&A to meet the USDA will allow unrecovered F&A to meet the

match requirementmatch requirementUSDAUSDA CSUCSU

ReimbursementReimbursement ContributionContribution

Total Direct CostsTotal Direct Costs $100,000$100,000 -0--0-

45% F&A Research Rate45% F&A Research Rate -0--0- $45,000$45,000

TotalTotal $100,000$100,000 $45,000$45,000

Monitoring of Cost Share AccountsMonitoring of Cost Share Accounts Department/CollegeDepartment/College

– transfers budget to cost share accounttransfers budget to cost share account– ensures that cost share commitment is ensures that cost share commitment is metmet– expenditures should occur on an on-going expenditures should occur on an on-going basis during the life of the projectbasis during the life of the project

Sponsored ProgramsSponsored Programs– monitors on routine basis, andmonitors on routine basis, and– reports to Sponsor as requiredreports to Sponsor as required

Consequences of Not Meeting Consequences of Not Meeting Cost ShareCost Share

Total sponsor costs may be reducedTotal sponsor costs may be reduced Possible termination of award, orPossible termination of award, or Could constitute a violation of the T&C Could constitute a violation of the T&C

of award so serious as to provide of award so serious as to provide grounds for subsequent suspension or grounds for subsequent suspension or debarment (NSF)debarment (NSF)

Topics for DiscussionTopics for Discussion

Please share with us the most unusual cost Please share with us the most unusual cost share you have provided. share you have provided.

Do you have faculty who are convinced that Do you have faculty who are convinced that they will receive a more favorable score if they will receive a more favorable score if cost sharing is provided? How do you handle cost sharing is provided? How do you handle this situation?this situation?

How do you handle “unplanned” cost-share How do you handle “unplanned” cost-share created by over-expenditure?created by over-expenditure?

Use of program income as cost-share?Use of program income as cost-share? Faculty volunteer services?Faculty volunteer services? How do you document the 1% NSF statutory How do you document the 1% NSF statutory

requirement?requirement?

COST SHARE SESSIONCOST SHARE SESSION

Colorado State University Colorado State University

Sponsored ProgramsSponsored Programs

http://www.research.colostate.edu/policy/