Cost Share / Matching Definitions

1
Cost Share / Matching Definitions

• Cost Share means that a specific portion of the
  project or program costs is not funded by the
  sponsor
• Matching/In-Kind
• Matching may be in the form another fund
  (non-federal)
• In-kind is provision of goods services whose
  value would be determined by open marketplace

2
Circular A110 requires costs to be

• -Allowable in accordance with A-21
• -Verifiable, necessary and reasonable for proper
  efficient accomplishment of project objectives
• -NOT included as contributions for another
  federal project/program
• -NOT charged to another federal award
• -Provided in the approved budget when required by
  federal awarding agency

3
Types of Cost Sharing

• Mandatory
• Costs required by terms of award or by federal
  statue University must contribute in order to
  get award
• Voluntary Committed
• Costs identified w/in the proposal, but not
  requested from the sponsor
• Voluntary Uncommitted
• Cost not funded by sponsor that was not
  identified in proposal nor required by sponsor
• In-Kindusually form of non-cash contributions

4
Impact of Cost Sharing

• On University
• As a general rule the University discourages cost
  sharing
• Adversely impacts our Indirect Cost rate
• FA Cost of Organized Research
• Cost of Organized Research
• 6 million w/ 2 mil in Voluntary C/S 6
  million
• 10 million 60 FA 12 million 50
• Voluntary Uncommitted C/S is NOT part of
  organized research base

5
Impact of Cost Sharing (contd)

• On Departments
• Increases staffing efforts
• Locks up funding
• Does Dept have Disc. Funds to recoup the
• Loss of FA or absorb more indirect costs
• Possible covering of expense if total commitment
  not achieved

6
Things to Consider

• University policy is to provide only the minimum
  amount of cost share necessary to meet sponsors
  requirement
• Will a separate 5-fund be created?
• Should occur in most cases when actual salary
  non-salaried expense will be charged these cost
  will be 10,000 or more
• No need for 5-fund?
• Certification of cost share amount will be
  required

7
Process / Procedure

• Proposal Stage
• PI / BA must treat C/S consistently with main
  award identify what makes up cost share and
  clearly indicate on the Proposal Transmittal and
  Approval Form (both Mandatory and Voluntary
  Committed)
• ORS Cost Share Form must be included identifying
  the source of cost sharing
• Budget direct costs, if separate fund created

8
Process / Procedure (contd)

• Award Stage
• Per policy, if a separate 5-fund is set up a 4822
  revenue entry should be posted at the time of set
  up for current FY.
• PI/BA should post monitor cost share expense
  accordingly
• Are we on track? Contact ORS/Sponsor?
• If interim reporting of C/S is required, ORS will
  coordinate report

9
Closeout Stage

• Perfect World
• When a separate 5-fund is created.
• 4822 Revenue entry total exp on cost share
  5-fund all costs are A/A/R
• Non-5fund Certification statement received
  all costs accounted for
• Did we come up short?
• The department may be required to cover a portion
  of the sponsor costs

10
Cost Share In Summary

• Cost Share is not encouraged
• Fed Regulations require us to record C/S separate
• Cost Share must be treated consistent w/Prime
• Must be shown on Transmittal and Approval Form
• Cost Share Form must be filled out correctly
• Determine if a separate 5-fund is needed
• Post Monitor cost share expense monthly
• Maintain all supporting documentation
• Process timely 4822 Revenue entry, if applicable
• Communicate any possible issues/concerns w/ORS