Let’s Talk Cost Sharing Sherrelle Vaughn Sponsored Programs Accounting and Reporting July 17, 2012

Cost Sharing Definition The portion of the total cost of a sponsored project not borne by the sponsor.

Cost Sharing Definition 3 Sponsor Award $50,000 Cost Share $50,000 Total Project Costs $100,000

Cost Sharing Definition Cost sharing is considered: − Committed or Uncommitted and − Mandatory or Voluntary 4

Committed vs. Uncommitted Committed – Specifically outlined in the proposal budget and made a condition of the award. Uncommitted – Contributions to the project above the amount required. Does not require documentation or reporting.

Mandatory vs. Voluntary Mandatory – A contribution required by statute or sponsor policy as a condition of an award. Voluntary – Not required by the sponsor as a condition of an award, but reflected in the proposal. This becomes a requirement.

Types of Cost Share Cash/Salary – recipient’s cash outlay –Salaries and Fringes –Equipment –Travel –Supplies In-Kind – non-cash contributions provided by non-federal third parties –Volunteer services – at rates, inclusive of respective benefits, exclusive of F&A, paid for similar work –Donated supplies & equipment – valued at current market value Third Party Contribution –From a party other than the University –Can be cash or non-cash

Types of Cost Share (Continued) Unrecovered F&A Costs on the award –Difference between TTU’s full rate and the rate of the award –Must be approved by the sponsor (per OMB A-110) –Manually calculated (does not reflect in Banner or Cognos) 47% TTU Full Rate 10% Rate on Award 37% F&A Cost Shared Invoice Sponsor for $110 10% $100 in grant Expenses Report $37 in Cost Share 37% $100 in grant Expenses

Types of Cost Share (Continued) F&A on the cost share direct expenses –Does not require the approval of the agency –Manually calculated (Does not reflect in Banner or Cognos) On campus: 47% Off campus: 26% Can also be a rate specified in the award by the agency 9 $100 in cost share expenses 47% ($47) $147 reported in Cost Share

Administrative Requirements: OMB Circular A-110 OMB Circular A-110, Section 23 All contributions, including cash and third party in-kind, shall be accepted as part of the recipients cost sharing or matching when such contributions meet all of the following criteria: −Are verifiable from the recipient’s records −Are not included as contributions for any other federally-assisted project or program −Are necessary and reasonable for proper and efficient accomplishment of project or program objectives −Are allowable under the applicable cost principles −Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching −Are provided for in the approved budget when required by the Federal awarding agency −Conform to other provisions of the circular

Cost Sharing & Allowability OMB Circular A-21 OMB Circular A-21, Section C.2. 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 is measurable, necessary − Consistent treatment through application of GAAP − Conform to limitations/exclusions set forth in A-21 or in sponsored agreement as to types or amounts of cost items Must be incurred during the performance period of the award.

TTU Cost Sharing Responsibilities Office of Research Services  ORS - Cost Sharing Planning  ORS will identify required cost sharing figures from the executed award document  Works with PI to identify cost share source of funds  The financial manager on the funds for cost sharing must approve of the source on ORS’s Internal Routing Sheet  Provides a cost share plan worksheet SPAR 12 ORS Cost Share Accountant Grant Accountant Principal Investigator

TTU Cost Sharing Responsibilities SPAR Cost Share Accountant  SPAR – Cost Share Account Set-up  SPAR will set up designated cost share/match accounts in accordance with the plan sent over by ORS  Will Transfer funds from the source to cover expenses in this account  Will be tied to the Grant ID for an Award  Will be set up in a dedicated fund class  15M, 16M, 18M, etc  With exception of E&G funds (11, 12, and 13)  Orgn will be the PI Orgn, Program code same a the sponsored project  Non-Federal awards used to meet cost sharing requirements on a Federal award must be set-up within their own sponsored award  Once a Non-Federal award is matched against any Federal award, that Non-Federal award can not be used to match any further Federal awards 13 ORS Cost Share Accountant Grant Accountant Principal Investigator

TTU Cost Sharing Responsibilities SPAR Grant Accountant  SPAR – Accountant Monitoring and Reporting  Grant Accountants will monitor and report cost share expenses recorded in the established accounts  Grant Accountant will manually document:  Fringe Benefits and Tuition and Fees on state-appropriated funds  Third Party Contributions  Manual F&A cost Share  Provide oversight and accountability for the funds throughout the award life cycle 14 ORS Cost Share Accountant Grant Accountant Principal Investigator

TTU Cost Sharing Responsibilities Principal Investigator PI is primarily responsible for ensuring charges are in accordance with federal regulations and terms and conditions of the award. Work with ORS to revise cost share plan as needed if it becomes apparent that commitments may not be met. 15 ORS Cost Share Accountant Grant Accountant Principal Investigator

Let’s Talk Cost Sharing Thank you for joining us for lunch! 16