1. COST SHARE Neta Fernandez Director, Grants and Contracts

2. Cost Share What is it? What qualifies as cost share? When do we document? Does it need a CAS template? Does CAS apply?

3. Definition Cost sharing or matching means that portion of a project or program costs not borne by the sponsoring agency

4. Cost Share Usually associated with federal grants or cooperative agreements - NOT contracts Grants/cooperative agreements represent financial assistance Reasonable to expect recipient to participate in costs of project

5. Criteria In order to qualify as cost sharing, costs: must be directly identifiable with project must represent costs incurred during period of performance must be allowable under A-21 and guide- lines of funding agency

6. Mandatory - required by statute or program as a condition of award Voluntary - offered by the grantee when not specifically required by sponsor Types Of Cost Share

7. If cost share is shown in proposal: IT IS A COMMITMENT OF THE AWARD It is tracked In Proposal Cost Share

8. Mandatory/Voluntary CAS applies requires a CAS template requires justifications is tracked

9. What Qualifies as Cost Share What Qualifies as Cost Share salaries (usually of faculty members) associated fringe benefits equipment supplies indirect costs associated with these

10. Requirements Cost share must meet following requirements: verifiable from grantee’s financial records not included as cost sharing contributions on any other federally funded project

11. Requirements (Continued) necessary and reasonable for project allowable under the applicable cost principles may include indirect costs not reimbursed by the sponsor, but only with prior approval of awarding agency

12. Cost-Share at NMSU Direct Cost Cost-sharing Matching (Non-Federal Sponsor) Indirect Cost Cost-sharing Third Party In-Kind

13. Direct Cost Cost-Sharing Definition:Actual expenses paid by NMSU with institutional funds that are required to fulfill the project scope and were agreed to in the award.

14. Matching (Non-Federal Sponsor) Matching (Non-Federal Sponsor) Definition: Another grant/contract awarded to NMSU that is from a non- federal source that can be used as a match. Expenses are charged the normal way to the grant/contract account that is to be used as a match and then SPA will report the activity on the matching grant/contract as a source of cost-sharing to the other award.

15. Indirect Cost Cost-sharing Definition: Waived indirect cost may be used to meet cost-sharing if approved in advance by the awarding agency at the time of award.

16. Third Party In-Kind Cost-sharing Third Party In-Kind Cost-sharing Definition: In-Kind cost-sharing must be from a third party and must be in support of the scope of the project. It is a non-cash contribution by a third party. Written confirmation from the third party after the in-kind support is provided will be needed

17. Reporting of Cost-Share SPA will be responsible for reporting to the agency all cost-share that has been incurred or accumulated for each project which has a cost-share requirement.

18. Other Information about Cost-Sharing Other Information about Cost-Sharing Cost-share is audited annually by the OMB A-133 Auditors If cost-share is committed in the award it must be reported to the agency Direct Cost Cost-sharing requires university resources from unrestricted or gift accounts Indirect Cost Cost-sharing reduces the Overhead recognized at NMSU - Loss of Income! Direct Costs can be applied only once as cost sharing for all sponsored programs Direct Cost Cost-sharing reduces the F&A RATE!!!

19. Total Project Costs Total Project Costs = Grant/Contract Award + Cost-share Total project costs must be allocable and benefit the project.

20. FAQs Question: Can funds from either a federal or non-federal source be used to cost share on another award ? ?

21. FAQs ? NO. Funds from a federal award may NOT be utilized as the source of cost sharing, except when authorized by both sponsors. Per A-110, non-federal awards may be utilized as the source of cost sharing ONLY if authorized by the non-federal sponsor. Answer:

22. FAQs ? If a project requires the purchase of a new piece of special-purpose equipment, can part or all of its cost be offered as cost sharing ? Question:

23. FAQs ? Answer: Yes, you may include in the proposal the use of University funds to pay for all or part of the cost of special-purpose equipment as a direct cost. This will be recorded in a cost share account.

24. FAQs ? Question: Can University facilities such as laboratory space be offered as cost sharing ?

25. FAQs ? Answer: No. These costs are charged to sponsors through the indirect cost rate. The proposal may contain a statement saying that the facilities “are available for the performance of the sponsored agreement at no direct cost to the project.”

26. FAQs ? Question: If the total amount of a proposed budget is reduced by the sponsor when the award is received, is the difference considered cost share ?

27. FAQs ? Answer: No, as long as the reduced amount of money also reflects a reduction in the scope of work. It may be a good idea to prepare and submit a revised budget and scope of work.

28. FAQs ? Question: Does CAS apply to cost shared direct costs ?

29. FAQs ? Yes. OMB A-110(23)(a)(4) requires that cost share be “allowable under the applicable costs principles”. This requires that direct costs and any indirect costs counted for cost sharing are allowable costs for the project and comply with A-21 which are the cost Principles with which NMSU is required to comply. CAS is part of OMB A-21. Answer:

30. FAQs ? Question: Does CAS apply to third party In-Kind ?

31. FAQs ? Answer: Since expenditures are not incurred by NMSU, the CAS standards we follow would not apply. There are many other applicable sections of OMB A-110 that should be followed with regards to third party In-kind. See OMB A-110 Section 23.

32. FAQs ? Question: Does cost share expense have to fall within the project period of the award ?

33. FAQs ? Answer: Yes, unless otherwise stated in the award agreement. This can get tricky with matching or third-party In-kind cost sharing.

34. FAQs ? Question: Does cost share affect our F&A rate ?

35. FAQs ? Answer: Yes, in the case of cost share of direct costs, our F&A rate is reduced. In the case of cost share of indirect cost share, our income generated from the F&A rate is lower. So overall the answer is YES!!

36. Thank you!

37. Questions?