Research.Online - University of South Florida's Research Guide

Cost Sharing

Cost Share

COST SHARE or matching is that portion of a project or program not borne by the sponsoring agency. It is the total cost of a sponsored project that is covered by the University (and/or third party) rather than the external sponsor.

It must be directly identifiable and specifically benefit the project or program. See A-110
It must be allowable under A-21 and the guidelines on the sponsoring agency
The cost must be incurred during the performance period of the project.

Cost sharing in excess of stated agency requirements should be avoided. An investigator may feel that his/her proposal has a better chance of funding if the University provides cost sharing for the project; however, most reviewers indicate that the strength of the proposal idea and cost effectiveness of the budget are the most important qualifications for success.

Unnecessary cost sharing leads to the lowering of the negotiated indirect cost rate, which means that the university not only subsidizes the project itself, but is also fails to recover all of its operational cost.

Refer to the USF Office of Research Cost Sharing Policy Statement (http://www.research.usf.edu/sr/costsharing/CostSharePolicy.pdf)

Types of Cost Sharing

Mandatory

Required by the program as a condition of the award and therefore is obligatory and reportable.

Voluntary

Offered by the grantee when not specifically required by the sponsor. It is the University's objective to obtain maximum reimbursement from the sponsors allowing the University to continue to grant research endeavors. Therefore, voluntary cost sharing is highly discouraged and requires approval of DSR.

Salary Cap Cost Sharing

Salary Cap Cost Sharing is cost sharing which occurs when the salary for an individual exceeds the sponsor imposed limit. This is classified as Voluntary Committed cost share and must be documented within USF's system and may require reporting to the agency. See the section on "NIH Salary Cap and Reporting Effort" at the end of this section for additional information.

Cost Sharing Categories

Committed or Reportable

Can be either mandatory or voluntary. This cost sharing or matching specifically identified in the document or required in the award letter or document. Any cost sharing offered in the proposal whether detailed in the budget, contained in the budget narrative or mentioned in the technical section is considered cost share and must be tracked by USF.

If an amount is proposed either to satisfy mandatory cost share or offered voluntarily to reduce the cost to the sponsor, the cost share is considered a financial commitment and must be documented and auditable within the University's system.

Committed cost share is:

Detailed in the proposal by the PI
Identified on the Internal Form
Accepted by the sponsor at the time of the award
Detailed on the GBR
Identified and entered into FAST

Uncommitted or Non-Reportable

Voluntary Uncommitted cost share (unplanned) is defined as cost share that does not need to be documented within the University's system or reported to the sponsors.

Qualified Cost Sharing

In-kind

An item of cost for which support is already in place, therefore no new cash outlay is required.

For example:

Salaries (usually faculty members)
Employee benefits
Supplies
Indirect costs associated with these costs
Unrecovered F&A. Some sponsors allow us to cost share the difference between our negotiated overhead rate and the actual rate used in calculating the budget. Read the sponsor's guidelines to make sure you understand the rules appropriate to the proposal. The sponsor's approval must be obtained.

Cash

Funds contributed from unrestricted institutional sources.

Third Party contributions

May be either in kind or cash contributions. The term third party refers to an organization other than the prime recipient that is participating in the cost of the project. For example, the University receives a grant with cost sharing requirements and also subcontracts a portion of the project to another university that is also required to make cost sharing contributions.

Cost Sharing Requirements

Verifiable from grantees financial records
Not included as cost sharing on any other federally funded project
Necessary and reasonable for the project
Allowable under the applicable cost principles. If the expense is not allowable as a direct cost, it cannot be cost shared.

Identifying Sources of Cost Share

Non Project to Project Cost Share

USF unrestricted fund (RO and E&G funds) shares in the cost of any sponsored project.

Requests involving DSR cost-share matching must be made in writing via a memorandum to the Associate Vice President of DSR. A Sample Memorandum is included at the end of the section.

More information regarding the certification of effort associated with salary cost share requirements can be found at the PERT website.

Permission must be obtained PRIOR to the proposal being submitted to the Sponsor.

Project to Project Cost Share

A non-federal sponsored project shares in the cost of another sponsored project

3rd Party to Project

Non_USF entitiy/individual shares in the cost of any sponsored project. See the Third Party In-Kind Contribution Form and instructions for information on how to properly document/track third party cost sharing.

Failure to meet cost sharing obligations or the failure to properly document cost share expenditures can result in cost disallowances by the sponsor.

Affect of Cost Share on our Institutional Base

Cost sharing on research projects must be included in the Organizations Research Base
The calculation changes and the indirect rate decreases
The reduced rate is then applied to federal research grants
Negotiated rate agreements are normal multi-year agreements which can have a significant $ impact.

Cost Share Roles and Responsibilities

PI

Work with Department Representative and RFM to complete all paperwork to setup committed cost share
Ensure that committed cost sharing requirements are being met and that documentation will meet all applicable guidelines and regulations
Schedule ongoing reviews to track and monitor cost share commitments

Department Representative / Business Manager

Assist PI in gathering resources and documentation to provide cost share
Assist PI with completing Internal form
Work with PI to complete all paperwork to setup committed cost share
Schedule periodic reviews with PI to ensure that committed cost sharing requirements are being met and that documentation will meet all applicable guidelines and regulations
Update the PERT Cost Share Setup Form as staffing needs change for committed cost sharing during the life of the award

Department Chair / Head and/or Center Director

Evaluate the appropriateness of proposed committed or uncommitted cost sharing contributions
If acceptable, verify that cost sharing commitments are available and documented
Review and sign Internal form

College Dean

Evaluate the appropriateness of proposed committed or uncommitted cost sharing contributions
If acceptable, verify that cost sharing commitments are available and documented
Review and sign Internal form

DSR

Resolve discrepancies between Internal Form data and sponsor's award notice
Review award terms and conditions and ensure that committed cost sharing is noted on the USF Research Award Notice (RAN)
Enter cost share commitments in financial database (FAST)
Assure that cost share is included on the GBR with applicable chartfield information to charge cost sharing

RFM

Setup committed cost sharing budget information in FAST
Include Cost Share information with new award e-mail announcement
Reconcile PERT effort certifications to actual payroll (PERT sweeps)
Review cost sharing documentation for compliance needs
Report committed cost sharing as required by sponsor

Vice President for Research

If requested, evaluate appropriateness of committed or uncommitted cost sharing contributions requested from the University and beyond the scope of the college deans

Cost Share Flow Chart

See the Cost Share Flow Chart for the step-by-step process/decision making tree for cost share.

More information detailing Cost Share at USF can be found at http://www.research.usf.edu/sr/costsharing/.