SPA Compliance Training: Cost Share Presented by Jordan Belke Cost Share Accountant

Learning Objectives What is cost share? When do we use cost share? What are the different types of cost share? How do we set up cost share? How do we charge cost share? How do we track cost share?

Definition Cost Share: Additional support needed beyond sponsor funding to support the Statement of Work on the Award

Cost Share Facts Is it mandatory to include cost share? Cost Share goes into the F&A calculation Some sponsors and programs require Cost Share Often referred to as “institutional support” Ask the Question: Is it mandatory to include cost share?

3 Types of Cost Share CU Boulder Cost Share Policy Mandatory committed: Pledged in proposal budget, budget justification, or proposal narrative. Specific dollar amount stated or can be calculated from info provided in proposal. Required as a condition of the award Voluntary committed: Pledged in proposal budget, budget justification, or proposal narrative. Specific dollar amount stated or can be calculated from info provided in proposal. Offered by recipient when not specifically required by the award Voluntary uncommitted: Incidental support that is over and above what was proposed and agreed upon for the project. Not tracked or reported

Language to Use in the Proposal Commits Cost Share Does Not Commit Cost Share 10% of Time to… Support this project $5,000 for equipment Use of University facilities Provide services valued at / worth…. The University supports research 500 hours of computer time We have projects that have similar goals Work a semester towards the project University has research facilities/equipment

Reminders All Cost Share Commitments must be approved by the party committing the dollars Use the Cost Share Addendum form Only authorized signatories can commit funds on behalf of the university Be sure the Office of Contracts and Grants (OCG) has the signed addendum before the proposal is submitted PI, Chair, Contributors, and/or Administration Any revisions require a new cost share form

Questions to Ask Be sure to ask the following questions before committing to Cost Share: How does this benefit the University? Can the expense be tracked? Who is paying? – Whose financials are the dollars held in? If the contributor does not meet the commitment, who is responsible? How can we avoid unnecessary cost share?

Cost Share Rules: Protecting CS Dollars Spend Cost Share dollars concurrently with project dollars Follow policies and the Award budget and terms and conditions for allowability of expenses Have persons of authority sign off on all portions of the cost share commitment Clarify if the sponsor will allow F&A to be claimed as Cost Share either from Cost Share Direct Costs or Waived IDC from the Project Return ANY unexpended cost share funds remaining at the end of the Award to the originating parties proportionally Ensure the Cost Share amount on the budget and the Cost Share amount on the addendum match

Cost Share Rules: Protecting CS Dollars Do not co-mingle Cost Share funds Avoid accepting an Award with a TBD Cost Share Agreement Cannot claim as Cost Share any dollar that is committed elsewhere Do not use the value of equipment already in use as Cost Share

Uniform Guidance (U.G.) Regulations This phrasing reoccurs in UG, Compliance Supplement Appendix XI: Not be included as a cost or used to meet cost sharing or matching requirements of any other Federal award, except as specifically provided by Federal law or regulation Costs were not included as a cost or used to meet cost-sharing requirements of other federally supported activities of the current or a prior period. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period. Costs are not used to meet cost-sharing requirements of other federally supported activities. Not be used to meet cost-sharing requirements of other federally supported activities Are not paid by the Federal Government under another award, except where authorized by Federal statute to be allowable for cost sharing or matching. Costs were not used to meet the cost-sharing or matching requirements of another Federal program, except where authorized by Federal statute. Costs were not included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period. Costs were not used to meet the cost-sharing or matching requirements of another federal program, except where authorized by Federal statute. Are not used to meet cost-sharing or matching requirements of other federally supported activities.

The Cost Share Addendum Enter the Proposal number here Include signature lines for each contributor and their respective Chair, Director, Dean, or other authorized party If the PI is the Chair/Director please add a higher-level signature authority Section 1: Effort from PI/Faculty

The Cost Share Addendum… continued Section 2: Source SpeedType If no Source SpeedType is available, use the Fund Code Section 3: Benefits and F & A. Fund 12 reports will not capture the Benefits & F&A Note: Funds 22 & 32 are subject to benefits, which the contributor will be expected to fund

The Cost Share Addendum… continued Section 4: All In-Kind is REQUIRED to have a signed letter of commitment that includes all goods or services being provided, as well as the calculation for the value of the In-Kind contribution. Section 5: If the In-Kind is from a Subcontractor, the signed contract must include a clause that the Cost Share will be included on Invoices presented to the University. The final Invoice from the subcontractor will not be paid until the Cost Share Commitment is fulfilled.

Cost Share Examples Type Description Tracking Internal Cash Contributions from Chair/Director/Dean SpeedType External Cash Contributions from a Third-Party Own Award Salary/Effort Salary/Effort (meets restrictions) ePERs – SpeedType In-Kind/External Goods or Services Given through a Third-Party Certification form/PI

Changes with FIN 9.2 for Cost Share SpeedTypes Only Funds are moved by cash transfers

Third-Party Cash Cost Share Preferred Cost Share Another entity provides the funding to go into our finances Separate Statement of Work (SOW) to support the research on the main project. With its own: Proposal number Award number Project number Connecting the Main Award with Third-Party Cash Cost Share InfoEd: Related Proposals Finance: Titles of the Award / Project & SpeedType uses the nomenclature - Costsharing for Proj 155XXXX: (then the title of the main Award) Spending Allowed in the main award = allowed on the Cost Share The 3rd party will have criteria for specific expenses Funding may not be used for Cost Share for any other Award or for any other unstated purpose

Incremental Cost Share Situation: A minimum amount/percentage of Cost Share to be reported for each report or invoice A large expenditure or In-Kind Steps to take – Be Proactive PI estimates when the large expenditure/In-Kind is expected Explain to the sponsor that the University cannot meet the minimum reporting requirement for each reporting/invoice due to the large expenditure and or In-Kind Cost share Propose to the sponsor a variance or exception/waiver for the timeframe when it would be reasonable for the Cost Share to occur

Hooray! CU Won the Award What’s Next? OCG completes information in InfoEd OCG sends to SPA who enters it into the Finance System Notify department of applicable SpeedTypes

InfoEd/Boulder eRA to PeopleSoft FIN 9.2 CCO’s Cost Share Accountant (CSA) Internal Cost Share – SpeedType setup for each appropriate Fund Type Effort only – SpeedType setup for each appropriate Fund Type In-Kind – Monitors the timing to complete the In-Kind Certification Form Waived F&A from Sponsor Direct Costs – Calculates the Cost Share amount Third Party Cash Cost Share: OCG creates a related Proposal & Award record SPA creates a Project and sets up the SpeedType

Charging the Cost Share SpeedType Expenses are to go directly onto the Cost Share SpeedType Avoid charging elsewhere then using a PET or JE to move the expenses Allowable expenses are those that: Directly benefit the main project Are allowable on the main project Necessary and reasonable Occur during the Period of Performance F&A on Cost Share Direct Costs are defined by the sponsor: Is it allowable? Generally at the rate of the Award

System Reminders Fund 12 – Reports only show Direct Costs less Benefits CSA calculates the Benefits and the F&A Fund 22 – Reports show Direct Costs including Benefits. Generally, 2X Funds incur GAIR. CU Boulder waives the GAIR on the Cost Share Fund 22 Any F&A is manually calculated by the CSA Fund 32 – Reports show Direct Costs including Benefits CSA calculates the F&A Fund 70 – Set up as funding from a 72 – only for capital expenditures

Cost Share Reporting CSA reports Cost Share through: Invoices to the Sponsor Grant Accountant Financial reporting NSF requires all Cost Share dollars to be reported in FastLane/Research.gov

Cost Share Reports The m-Fin Financial Detail report is our recommended report to run for cost share. To run reports without Cost Share SpeedTypes: Open the report, type in either project or Award number Click next Choose the Fund 30 or 31 Click Finish Only the main (non-Cost Share) SpeedTypes will be in the report

Financial Detail Report Use dates before the beginning of the Award thru today Click the next tab Click on the Cost Share fund type (if you have pulled by project/award) 3. Click on PET box to get HCM PET request number

Financial Detail Report … Continued 4. Mark the report to be delivered in Excel 5. Remove the TROLL Lines 6. Recalculate all the totals & subtotals under the removed lines 7. Review what was entered in budget and cash transfers 8. Be sure Actuals are correct in the report 9. Do the calculation of funding minus actuals equals balance available

In-Kind Requirements In-kind starts with the letter of intent from the contributor at the time of Proposal The CSA logs the information into the Cost Share tracking and notes if possible when the In-Kind portion can be completed and certified 30-90 days before the end of the Award, the In-kind Certification form must to be sent to the donor of for signature The PI will review the In-Kind Certification, they can verify whether commitment was fulfilled The signed In-Kind Certification is sent to the CSA to be: Documented and retained for audit Incorporated into the Cost Share reporting

In-Kind Certification Form Must be completed by an authorized signee from the entity that provided the In-Kind commitment for the project It must include Timeframe, value per time frame = total $ value Verifiable value of services Verifiable value of any goods This is a binding document The value of the In-Kind contribution is accounted for upon the receipt of this form In-Kind cert can be found on the CCO website: Sponsored projects accounting>SPA Compliance>Cost Share

Sponsor Waived F&A Cost Share When the sponsor allows less than the total F&A rate, the sponsor can allow the University to claim the waived F&A as Cost Share The Sponsor must specifically allow this option – we do NOT automatically use these F&A dollars as Cost Share There is a line on the cost share addendum for waived F&A The CSA pulls the Award reports and manually calculates the Cost Share F&A to be included in the reporting

Closing Cost Share – Together! Monitoring takes place throughout the Period of Performance 30-90 days before the end – a review of the Cost Share is completed to make sure the commitment(s) are fulfilled The CSA reconciles all the Cost Share financials The CSA will file the final report with the appropriate person / entity Departments make sure account balances are zero before CSA can close out. Any funds not expended go back to the funding sources proportionally Department to notify the CSA that account is zeroed out and will then get the SpeedType Inactivated