Cost Sharing Why and How

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Cost SharingWhy and How

• Trudy M. Riley
• Manager, Sponsored Programs Administration
• Susan Tkachick
• Closeout Administrator

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AGENDA

• What is Cost Sharing
• Why Cost Share
• What is Allowable
• Managing Cost Sharing during the life of the
  project
• What happens at Closeout

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What is Cost Sharing?

• That portion of the project not borne by the
  sponsor that must be
• Verifiable and auditable
• Not included as contributions for any other
  federally-assisted project or program
• Necessary and reasonable for accomplishment of
  objectives
• Allowable under the applicable cost principles
  (A-21)
• Not paid from Federal funds, unless authorized by
  Federal statute

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Mandatory or Voluntary Committed

• Mandatory cost sharing is required by the
  sponsor as a condition of the award
• Voluntary Committed cost sharing is not
  required by the sponsor but is included in the
  proposals project description, budget and/or
  budget justification

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Voluntary Uncommitted

• This is effort or expenditures that are in excess
  of committed or budgeted amounts this effort or
  expenditures are NOT in the proposal project
  description, budget or budget justification

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Voluntary Cost Sharing becomes Mandatory
when

• Even if a sponsor does not require cost sharing,
  if it is offered in a proposal to the sponsor
  (either in the budget or quantified in the
  narrative) and the proposal is awarded, then the
  cost share becomes mandatory to track

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Why Cost Share

• Sponsors issue RFPs requiring cost share
• Scope of work requires resources greater than
  commitment by sponsors

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Why Not to Cost Share

• Cost share should not be committed if PI wants to
  do so to enhance their ability to win awards

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Cost Sharing AllowabilityOMB Circular A-21

• Factors affecting allowability of costs
• Reasonable necessary, prudent, consistent with
  institutional policies and practices
• Allocable incurred solely to advance the work
  under sponsored agreement, benefits are
  measurable, necessary
• Consistent treatment of costs
• Conform to limitations/exclusions set forth in
  A-21 or in sponsored agreement as to types or
  amounts of cost items

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Include in Proposal Budget

• All committed cost sharing should be included in
  the UD Grants proposal system record
• It should be entered in the budget line summary
  panel

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Accounting for Cost Sharing

• Companion Purposes
• LAM Labor Allocation Module
• Obligations
• Using Userfield and Project
• Subcontracts
• Query

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Companion Purpose

• If you have requested and been approved to have
  cost share from OVPR when the award is set up
  OVPR will request the establishment of a
  companion purpose for OVPRs cost share amount.
  A good practice would be to also deposit in this
  purpose all other committed cost share funds,
  i.e. from College, department, etc.

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LAM Labor Allocation Module

• Cost sharing where effort is shown on the
  sponsored project proposal budget or budget
  justification with no corresponding funding
  requested or awarded may be tracked through the
  LAM.
• When cost sharing is distributed via the LAM, it
  will be reflected in the individuals effort
  certification record

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LAM Cont.

• XXXX11MTCH use this for basic budget-funded
  salary that you specifically want to track as
  cost share this would select XXXX110000 as the
  Purpose and University Sponsored Research (RSCH6)
  as the PS Program
• NOTE When using Speedtypes that point to
  University Sponsored Research as the PS Program
  (that is, Speedtypes ending in MTCH), you should
  include the ProjectID that refers to the contract
  or grant that you are matching.

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Using Obligations Module

• In order for a non-salary obligation to be
  automatically de-obligated, the following
  conditions must be met
• Active obligation
• PS Account is NOT a salary account
• UDChartfield (Userfield) is NOT blank/null,
• Business Unit, Chartfield1, Account, Class, Fund
  and UDChartfield (Userfield) all match the
  transaction that posts to Financials

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Userfield and Project code

• You can use userfield and project code on all UD
  webforms to identify transactions for cost
  sharing
• Departments need to identify a naming convention
  for their userfields

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Subcontracts with Cost Share

• When a subcontract commits cost share, this
  should be documented in the subcontract and needs
  to be tracked by UD. Even though the subcontract
  is required to meet the commitment, UD as the
  prime grantee is responsible for making sure that
  all of the cost share is met

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Query

• GMQ_CS_COMMITTED_EXPENDED_V
• GMQ_CLOSE_OUT_REPORT

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Closeout

• Cost sharing documentation and/or confirmation
  should be submitted to OVPR with the closeout
  checklist no later than 60 days after award has
  ended

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Voluntary vs. Mandatory

• Mandatory reporting
• - must be included on financial reports
• Mandatory documentation
• - must be kept in file for audit

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What cost sharing can OVPR obtain?

• Grad tuition
• - when grad student has 100 effort on project
• Waived FA
• Salary, when LAM effort certification are
  correctly documented
• Expenses tagged as cost sharing and with project
  id

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What cost share must dept provide?

• Tuition, if student is not paid on grant, or if
  effort is less than 100
• Cost Share from external sources
• - signed certification is required
• Other misc. expenses, not tagged

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Consequences of unmet Cost Sharing Obligations

• May have to reduce amount of funds received from
  the sponsor. If you have already received funds
  from sponsor, may need to pay portion back.
• PI may request a match reduction from sponsor
• - this will delay the closeout

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What if cost share differs from budget?

• Generally OK to re-budget cost share if
  appropriate to project scope
• If a specific cost share expense is a condition
  of the award, you may not substitute other
  expenses

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What cant be used for cost sharing?

• Federal funds
• UD space/facilities
• Waived FA on equip or tuition
• Expenses already reported as cost sharing on
  other projects
• Expenses not allowable under award
• terms conditions
• Expenses outside award time period

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Record Retention

• How long must cost share documentation be kept?
• Until the corresponding award is destroyed

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Dos and Donts

• Donts
• Include items already noted as a contribution on
  another award
• Include items unallowable per the applicable cost
  principles
• Include items paid by the Federal government
  under another award, unless authorized

• Dos
• Track/document all cost shared items for an award
• Include only those items necessary and reasonable
  for the project
• Include mandatory and voluntary committed items
  noted in budget or budget justification

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Remember

• Commitments in proposals become requirements upon
  award

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And