Cost Sharing

1. Presented by: The Division of Sponsored Research Brian Prindle Cost Sharing November 5, 2010

2. Definition of Cost Sharing • UF Cost Share Policy • Types of Cost Sharing • What’s needed at the time of proposal • What occurs after the award is made • Questions and Answers Overview

3. Cost sharing represents that portion of the total costs of a sponsored project paid for by the University, rather than the Sponsor. Cost sharing is also known as Matching or Contributions. Definition of Cost Sharing

4. Total Project Costs: $ 200,000 Grant Award: 150,000 University’s Contribution: $ 50,000 $ Example of Cost Sharing

5. 1.Mandatory – required by the agency. Three Types of Cost Sharing by Policy 2.Voluntary Committed – not required by the agency, but offered in the proposal submitted - for leveraging purposes

6. UF Cost Sharing Policy It is the policy of the University that only mandatory cost sharing be submitted to sponsoring agencies. This policy does not preclude exceptions that may be judged appropriate under certain circumstances to leverage a project. Mandatory cost sharing requirements are usually defined by law, statute, agency regulations, or written in the application guidelines for a specific program. When there is mandatory cost sharing a copy of the request for proposal (RFP), regulations or guidelines must be submitted with the proposal along with a written commitment from the individual authorized to commit the resources. All non-mandatory or voluntary committed cost sharing being offered to the sponsor in a proposal must be reviewed and committed in writing by the College Dean (without delegation) and forwarded with the proposal to the Division of Sponsored Research (DSR) for approval by authorized institutional representative.

7. Mandatory cost sharing – by policy 1. Backup showing agency requirements 2. Written approval from individual authorized to commit the resources DSR Proposal Processing Requirements

8. Voluntary Committed cost sharing – by policy 1. Written approval from the Dean DSR Proposal Proposal Requirements

9. Voluntary Uncommitted cost sharing – by policy Nothing - there is no cost sharing being presented to the sponsor in the proposal. DSR Proposal Processing Requirements

10. Verifiable from University Records • Must be for allowable direct or indirect costs • Timely and accurately charged/accounted for • If Federal, must be for Allowable Costs, following OMB Circular A-21 – our cost principles and sponsor guidelines Cost Sharing Must meet the following criteria:

11. May not come from a Federal Grant/Contract • Cost Sharing dollars may only be used once • If from a non-Federal grant we need Sponsor permission Cost Sharing Must meet the following criteria:

12. Ask yourself, “Would I be allowed to pay for the expenditure directly from the grant?” • If YES, then you may use the cost as cost sharing. • If NO, you cannot use the cost as cost sharing. To determine if Allowable:

13. Allowable Types of Cost Sharing Q: What types of costs may be Cost Shared? A: Your traditional direct costs such as salary, fringe, equipment, lab supplies, travel. The associated F&A (indirect costs) for the direct costs being cost shared, if allowed by the agency. Unrecovered F&A costs may also be used if allowed by the agency.

14. UnAllowable Types of Cost Sharing Q: What types of costs may NOT be Cost Shared? A: Costs that are not typically charged directly to grants; clerical support office supplies building operation costs contribution of space excess of regulatory salary caps OMB Circular A-21 unallowables

15. DSR Accepts the Award. The eNOA is distributed to the PI, Dept, and C&G Accounting. • The eNOA reflects the required Cost Sharing that needs to be tracked and accounted for. At the Time of Award

16. C&G receives the eNOA • Required cost sharing amount (Mandatory and/or Voluntary Committed) is entered into the University’s tracking system (Peoplesoft Project Resource) • Cost Sharing reports are available to monitor progress toward meeting the required cost sharing amount • The MyUFL Project Summary Page includes a link to run a Cost Sharing Report • Instructions to Run Reports – DSR Awards Website After Award is Accepted

17. MyUFL Project Summary Page

18. PI or Dept Grants Specialist need to inform dept staff of cost sharing requirements. • Salaries are cost shared through the Effort Tracking System (“Loaned” and “Borrowed” effort) – Notify the effort approvers in your department to designate Cost Sharing % in Effort Tracking System • Non-Salary cost sharing is a manual entry - Notify the C&G Accounting Specialist assigned to your grant and provide the required certification. After Award is Accepted

19. Cost Share Report

20. For all manual cost share entries Dept must provide C&G Accounting a signed certification statement on the document as follows: • "This is to certify a cost sharing contribution in the amount of $__________to project #__________. This cost has not been used as cost sharing for any other project.“ • Sign & dated Certification Statement for Manual Entries

21. Salary cost sharing is updated after each Effort Tracking term closes • Update as needed for all salary and non-salary manual entries After Award is Accepted

22. Meet timely during the awarded budget period. Do not wait until the end of the project to account for cost sharing. • Use unrestricted sources; (state funds, overhead, misc donors projects). • Allowable Expenditures. • Subject to Cost Accounting Standards for Federal awards. Cost Sharing Reminders

23. Reduction of Cost Sharing; Consult with DSR’s Award Adminstration Office. • C&G offices monitor for internal reporting, external reporting, and invoicing requirements. • C&G cannot close a project until all cost sharing is accounted for. • Cost Sharing is Subject to Audit. Cost Sharing Reminders

24. The Future

25. For cost sharing questions relating to proposals Judy Harris DSR Proposal Processing 392-1582 jaharris@ufl.edu Contact Information

26. For questions regarding the amount of cost sharing required (after award is accepted) Dee Dee Teel DSR Award Administration 392-1582 vd2t@ufl.edu Contact Information

27. For questions regarding how to account for or report cost sharing contact Contracts and Grants Accounting: 392-1235 C&G Main 392-2356 C&G @ IFAS 392-6626 C&G @ Engineering Contact Information

28. Questions ?

29. COST ACCOUNTING STANDARDSpresented by theDivision of Sponsored ResearchBrian Prindle November 5, 2010

30. UF Research Numbers at a Glance • First Grant in 1946 • FY-09/10 $678 M • Federal Funds $487 M • Federal ARRA Funds: $77 M • Active Projects: 7000 • Different Sponsors: 1000

31. UF RESEARCH AT A GLANCE FY09/10 • Federal = 72% • State/Local = 10% • Foundations = 10% • Industry = 6% • Other = 2%

32. CAS & THE FEDERAL PERSPECTIVE • In the early 90’s conversations were brewing • Resulting in the a perception that University’s were being Paid Twice for the Same Thing. • How could that be? • University’s were expected to use earned indirects to pay for Facilities and Administration (F&A). UF’sF&A rate is currently 46.5% • If Administration is paid for with F&A dollars, then University’s should NOT be charging administrative costs again as a Direct Charge.

33. 1996 CAS was Implemeted • Office of Management & Budget Implemented Through OMB Circular-A21, our Allowable Costs Principles • Federal Agency’s Comply • University’s Comply • Auditor’s Audit A-21 UF CAS Policies AUDITORS

34. The Blank Wall Ignore Prove it! The PI Says So! Silence Defiance Since When? Are You Kidding? Who Says? The Sponsor Approved It Talking About CAS

35. UNIVERSITY OF FLORIDA CAS TEAM • Faculty (PI) • Department Chairs • Dean’s • Dept & College Grant Administrators • Division of Sponsored Research • Contracts & Grants Accounting • Auditors Who is Responsible?

36. WHAT DOES UF CAS POLICY SAY? • Only Applies to Federally Funded projects where indirect costs are not prohibited. • We follow OMB Circular A-21. • We will charge project expenses consistently in like circumstances. • Meaning either as a Direct or Indirect charge.

37. UF CAS POLICY is Clear • The following cost items are normally INDIRECT and are not charged DIRECTLY to federally funded Projects: • Clerical, Administrative, or Secretarial Job Codes (see list) • Postage (794000) • Office Supplies - General (732100) • Computer Supplies (734100) • General Computer Software(734200) • Memberships (791000) • Subscriptions (791100) • Local/Basic Telephone (722100,722120,722130,722140,722200)

38. COST ACCOUNTING STANDARDS http://fa.ufl.edu/cg/capolicy/jobcodes.asp (Partial List)

39. CAS Policy Does Allow Exemptions for • Unlike Circumstances • For example A PENCIL • Normally a GENERAL OFFICE SUPPLY and is considered an indirect cost. • But can it be a Direct Charge? • Maybe, if there is an unlike circumstance.

40. A Pencil’s Unlike Circumstance 1. A pencil might be a direct charge if the pencil is part of a training packet being distributed with other training materials to participants attending a training program which is funded by a federal grant. 2. A pencil might become direct charge when a scientist is studying the lead composition of a number 1, 2 & 3 pencil and performing research activities on the pencil to demonstrate scientific attributes or prove technical theories. What should be done to allow this normally indirect item be charged as direct? Process a Request for a CAS Exemption.

41. QUESTION: • What is the Process to allow a normally indirect cost be charged Directly to a federally funded project?

42. CAS ExemptionForm Use this form to request a normally indirect cost to be a direct direct charge. http://rgp.ufl.edu/research/forms.html

43. ANSWER: • Prepare a CAS Exemption Request Form • Present the unlike circumstance of the project • Provide the details of what the administrative positions will be doing that are directly related to advancing the work of the project. • Provide the details of why the expense items are need and are above the routine levels provided by the department. • Submit to DSR Award Administration Office

44. Question: • What happens when the CAS Exemption Form is Approved by DSR? • Answer: • DSR will distribute the approved CAS form to C&G Accounting, PI, Dept – by email. • C&G uploads the Exemptions into the accounting system and by email lets us know the accounts are available for use.

45. How may I clear a CAS Violation? • Transfer cost to an appropriate cost center or account following the new cost transfer procedures. Or if you do believe you have an unlike circumstance • Prepare “CAS Exemption Form” and submit to DSR for review and approval

46. For additional information on CAS and other Cost Accounting Policies UF Cost Accounting Policies • http://fa.ufl.edu/cg/capolicy/ DSR Researcher’s Handbook • http://rgp.ufl.edu/research/handbook/researcher_handbook/

47. CAS Contacts • Division of Sponsored Research (352) 392-1582 (Brian Prindle) • Contracts & Grants: (352) 392-1235 (Bill Gair is the C&G contact for CAS)

48. Any Questions before the Test

49. SAMPLE EXPLANATIONS HOW WOULD YOU VOTE: YES or NO! Program Assistant (Clerical): Mr. Smith obtained the required security clearance from the DOD & serves as the security officer for this classified contract. A security clearance officer is a requirement of this DOD grant as the data provided & developed under this contract are classified and must be handled as such. General office supplies are needed for the grant because if we did not have the grant we would not have to use additional supplies such as paper or pencils.

50. Local Telephone: The administration of the Minority Teacher Training Program requires maintaining contact with over 700 scholars across the state of Florida. The telephone is used during recruitment, registration & for retention purposes for program participants. This is a dedicated telephone line. OPS: The OPS student works in the lab performing analytical chemistry and enzyme assays as described in the specific aims of the grant.