1. Cost Share Fundamentals

2. Learning Objectives Todays presentation will focus on: Cost share – The What and Why The different types of cost sharing Sponsor requirements pertaining to cost sharing Proposal Preparation Documenting and Reporting Monitoring

3. What is Cost Sharing  A sponsored program cost that is not reimbursed by the sponsor. “That portion of project or program costs not borne by the sponsor."  Cost sharing occurs when the institution or a third party contributes toward the cost of a sponsored program.  Quantifiable

4. Why Cost Share? Required - under the Request for Proposal (RFP) Essential – sponsors are increasingly looking for multi-disciplinary efforts Human and financial capital beyond sponsor’s funding is critical for success

5. Types of Cost Sharing Mandatory: A required condition of an award or agreed to by the institution and sponsor during sponsored agreement negotiation. Voluntary committed: Not required by the sponsor, but proposed in the budget or narrative with no corresponding sponsor funding requested or awarded. Voluntary uncommitted: Cost sharing that is over and above that which is identified and budgeted for in a proposal and award. None – no cost sharing

6. Examples of Cost Sharing  Cost sharing examples include: Personal service Other than personal service (OTPS) In-kind contributions Third party

7. Examples of Cost Sharing (Cont’d)  Personal Service - the effort of the PI and/or employees devoted to the sponsored program. This effort, including employee benefits, may be cost shared if those costs are not charged directly to the sponsored program.  Other than Personal Service (OTPS) – anything other than personal service For Example: Travel, equipment, supplies, unrecovered F&A costs, volunteers and tuition.

8. Examples of Cost Sharing (Cont’d)  In-kind contribution noncash contribution for which a cash value must be determined (e.g., volunteer services).  Third Party contribution or donation of cash or services to a sponsored program by an external entity.

9. Cost Sharing Characteristics  Allowable Costs permissible as a direct charge  Necessary Costs required for successful completion of the project  Allocable Costs that may benefit more than one project must be divided among those projects in ratio to usage

10. Cost Sharing Characteristics  Reasonable Costs that are estimated at fair market value  Documented (detailed)  Consistent Documentation and accounting of cost shared expenditures are the same as those of the sponsored program expenditures

11. Federal Requirements

12. Office of Management and Budget (OMB) Office of Management and Budget (OMB) Uniform Guidance 2 CFR Part 200 defines the federal requirements on sponsored programs 200.306 Cost Sharing or Matching: o Clarifies policies on voluntary committed cost sharing o Stipulates that voluntary committed cost sharing is not expected under federal research proposals and cannot be used as a factor during the merit review of the proposal

13. Office of Management and Budget (OMB) Cont’d o Cost sharing may only be considered when required by regulation and transparent in the notice of funding opportunity. o Only mandatory cost sharing or cost sharing included in the project budget must be included in the organized research base for computing the indirect cost rate or reflected in the allocation of indirect costs.

14. Office of Management and Budget (OMB) Cont’d Case Study – DHHS Salary Cap  Dr. Smith’s base salary is $250,000, which exceeds the NIH cap of $199,700 (for calendar year 2010). For his NIH award, he has committed 40% effort under the sponsored award and 20% effort will be cost shared. _______________________________________  % of salary allowed Dr. Smith’s base salary is $250,000, which is under the NIH award: 40% of $199,700 = $79,880 (31.95% of total salary)  % of salary allowed under the C/S award: 20% of $199,700 = $39,940 (16% of total salary)  % charged to campus’ NIH Cap Award: 60%-31.95%-16% = 12.05% of total salary ($30,125) ______________________________________________ The remainder of his salary will be charged to the OIA award.

15. Office of Management and Budget (OMB) Cont’d  Under the new Uniform Guidance OMB Memorandum 01-06, Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Costs continues to apply.

16. Office of Management and Budget (OMB) Cont’d OMB expects that “most federally-funded research programs should have some level of committed faculty (or senior researchers) effort, paid or unpaid by the federal government.” – This is considered voluntary committed cost sharing

17. Cost Sharing – Important Notes  Funds from a sponsored award may be used as cost share against another sponsored award only when specifically permitted by both sponsors.  Federal funds may not be used for cost share on other federal awards.

18. Cost Sharing – Important Notes (Cont’d)  Any cost sharing (voluntary or mandatory) contained in the proposal and/or award budget is considered to be committed for purposes of documentation and reporting.  Both mandatory and voluntary commitments are binding obligations and must be documented for cost accounting purposes and verifiable through auditable records.

19. Proposal Preparation

20. Cost sharing can be reflected in a proposal budget and/or within the narrative section. Required: mandated by sponsor If not required, do not offer it Cost Sharing Commitment vs. Administrative Impact Cost sharing campus resources requires commitment to provide those resources Consider cost effectiveness

21. Proposal Preparation (Cont’d) Over-Committed Effort Could interfere with a faculty member’s obligation to the institution. Equipment Time and Use Verify no interference (don’t double book) Subrecipient Cost Sharing If a subrecipient voluntarily offers cost sharing in a proposal it becomes a commitment under the terms of the award and represents a binding obligation of the institution and the subrecipient.

22. Proposal Preparation (Cont’d) If cost sharing is required, determine: – If costs are allowable, allocable and reasonable – The value of the cost sharing Valuation: Not to exceed fair market values. Documentation: Basis for determining the value. – That all cost sharing commitments can be met

23. Proposal Preparation (Cont’d)  Responsibilities: Project Director or Principal Investigator Determine costs required to successfully complete a project. Appropriate Campus Stakeholder Campus review and approval for committing cost sharing in proposals (e.g., Dean, Dept. Chair, etc.) Operations Manager or Designee: Review and endorse* applications on behalf of the RF. * Endorsement of a proposal that includes cost sharing is a commitment to a binding fiscal obligation.

24. Documenting and Reporting Cost Share Expenditures

25. Cost Share Documentation – What and Why Comply with OMB Uniform Guidance 2 CFR Part 200 Comply with sponsor requirements Report cost sharing amounts to sponsors (financial reporting) Provide the total cost of conducting sponsored programs to campuses The specific type of documentation required is based on the terms and conditions of the sponsored award.

26. Capturing Cost Share in Oracle A cost share award with a cost share budget is established for the committed amount of cost sharing. Once a required cost share award is established, it is the responsibility of each campus to input the associated expenditures into the Oracle Business System.

27. Capturing Cost Share in Oracle (Cont’d) Cost Shared SUNY Salaries Establish a labor schedule in the Labor Distribution (LD) module in the Oracle System Other Than Personal Service (OTPS) Entered through pre-approved batches as “usage charges”.

28. Capturing Cost Share in Oracle (Cont’d) For additional information on creating cost share awards and entering cost share expenditures refer to: C OST S HARING : A G UIDE FOR A DMINISTRATORS Cost share expenditures are entered into the cost share award in a timely manner during the life of the sponsored award.

29. Monitoring Cost Sharing

30. How to Monitor Cost Sharing Frequency: No less than quarterly (depending on sponsor) Run one of the following reports: – Oracle Report - RF Cost Share Monitoring Report (Award Missing Cost Share Companion – Report Center Report – 650REPORTING GABA_Cost Share Monitoring Report – Award Missing Cost Share Companion – Oracle Report - RF Cost Share/Match Commitment Monitoring Report – Report Center Report - 650REPORTING: GABA_Cost Share/Match Commitment Monitoring Report Review the reports to ensure cost share awards have been created and expenditures are being charged to the cost share award to meet the cost share commitment. For additional information on monitoring refer to C OST S HARING : A G UIDE FOR A DMINISTRATORS

31. Monitoring Report

32. Questions  Contact your campus Sponsored Programs Office  Regina Buschmann (518) 434-7141 regina.buschmann@rfsuny.org  Karen Kilmer (518) 434-7131 karen.kilmer@rfsuny.org