1. COST SHARING Colorado State University Sponsored Programs Mary Atella Betty Eckert Candyce Jeffery Carmen Morales http://www.research.colostate.edu/policy/

2. Cost Sharing / Matching  Sharing of project costs by sources other than the Sponsor’s funds awarded in support of a project  More than a “token amount” (i.e. 1% required by NSF)  Normally on grants or cooperative agreements, NOT contracts  Types of costs: any allowable direct costs that benefit the project and are verifiable

3. Cost Sharing Criteria  A-110 (now also called 2 CFR 215) states that cost sharing must be : – verifiable in recipient’s records – not included as contribution for other federal projects federal projects – necessary and reasonable for project – allowable under applicable cost principles – not paid by the Federal Government on another award unless approved another award unless approved – provided for in approved budget when required by the federal awarding agency required by the federal awarding agency

4. Types of Cost Sharing  Mandatory Cost Share – Required by Sponsor as condition of award  Voluntary Budgeted Cost Share – Not required by the Sponsor, but becomes a legal requirement when included in Proposal budget requirement when included in Proposal budget – Strongly discouraged by University policy  Unbudgeted Voluntary Cost Share – Not quantified in the proposal – Reflects faculty effort during the academic year – No separate account is needed for tracking

5.  PI annual salary is $120,000  PI proposes (commits) 50% effort to project  Budget shows PI salary at $30,000  PI certifies 50% to the project $120,000 x 50% = $60,000 Less paid from grant =($30,000) Cost Share = $30,000 Cost share must be documented. Voluntary Budgeted Cost Share

6. Unbudgeted Voluntary Cost Share  PI annual salary is $120,000  PI budgets (commits) 50% effort ($60,000) to the project  PI certifies 60% effort to the project The 10% effort over and above the budget (commitment) is voluntary uncommitted cost share and does not require documentation

7. Leveraging Funds  Leveraging vs. Cost Sharing - Leveraging includes other associated programs - Leveraging includes other associated programs related to proposed activity related to proposed activity - May have separate scope of work, performance period, and budget period, and budget - Described in narrative without detailed budget information, if possible; NOT shown as cost information, if possible; NOT shown as cost sharing or matching sharing or matching - Include statement in proposal to clarify leveraging is NOT cost sharing and will not be leveraging is NOT cost sharing and will not be documented as such documented as such

8. Accounting for Cost Sharing  Creation of Dedicated (Companion) Accounts - Allows for separate/accurate documentation of contributed costs for inclusion on financial of contributed costs for inclusion on financial reports reports - Linked to sponsored project account  Creation of object codes within accounts

9. CSU’s Process for Creating Dedicated Accounts  Internal forms: – Proposal Approval Form (SP-1) (pre-award) – Institutional Commitment form (pre-award) – Request for Dedicated Account Form (post-award) (post-award)  No account needed if only cost sharing F&A

14. Special Documentation in lieu of Dedicated Accounts Special Documentation in lieu of Dedicated Accounts Special documentation is needed at pre- and post-award stages for:  “Third party” contributions, cash or in- kind  Other institutional contributions – land, equipment, donated services, tuition differential, etc.

15. Unrecovered F&A  Use of unrecovered F&A requires prior approval of Federal sponsor  No separate account needed to document unrecovered F&A only  Reported to sponsor on financial reports when mandatory

16. NSF Cost Share  New policy on Cost Sharing: – 1% statutory requirement – no longer required on unsolicited proposals proposals

17. NIH Salary Cap  Limitation of Salary Rate – Legislatively mandated  University Documentation – via dedicated cost share account

18. NIH Salary Cap--Example  Individual with 50% effort per month Annual base salary= $190,000 or $15,833.33/month Annual base salary= $190,000 or $15,833.33/month Sponsor salary limit= $180,100 or $15,008.33/month Sponsor salary limit= $180,100 or $15,008.33/month University share= $ 9,900 or $825/month University share= $ 9,900 or $825/month Actual salary= $ 7.916.67 for 50% effort/month Sponsor share= $ 7,504.17 for 47% effort/month Univ. share= $ 412.50 for 3% effort/month

19. USDA Joint Venture Agreements (JVA)  JVAs require cost sharing (80% Sponsor/20% Recipient)  F&A is not allowed for State Cooperative Institutions  USDA will allow unrecovered F&A to meet the match requirement USDACSU ReimbursementContribution Total Direct Costs$100,000-0- 45% F&A Research Rate-0-$45,000 Total$100,000$45,000

20. Monitoring of Cost Share Accounts  Department/College – transfers budget to cost share account – ensures that cost share commitment is met met – expenditures should occur on an on-going basis during the life of the project basis during the life of the project  Sponsored Programs – monitors on routine basis, and – reports to Sponsor as required

21. Consequences of Not Meeting Cost Share  Total sponsor costs may be reduced  Possible termination of award, or  Could constitute a violation of the T&C of award so serious as to provide grounds for subsequent suspension or debarment (NSF)

22. Topics for Discussion  Please share with us the most unusual cost share you have provided.  Do you have faculty who are convinced that they will receive a more favorable score if cost sharing is provided? How do you handle this situation?  How do you handle “unplanned” cost-share created by over-expenditure?  Use of program income as cost-share?  Faculty volunteer services?  How do you document the 1% NSF statutory requirement?

23. COST SHARE SESSION Colorado State University Sponsored Programs http://www.research.colostate.edu/policy/