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Cost Sharing

Cost Sharing. Presented by: Office of Sponsored Programs Office of Post-Award Administration. Cost Sharing. Definition: That portion of a project or program cost that is not reimbursed by the sponsor. May be required as a condition of award (mandatory).

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Cost Sharing

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  1. Cost Sharing Presented by: Office of Sponsored Programs Office of Post-Award Administration

  2. Cost Sharing • Definition: That portion of a project or program cost that is not reimbursed by the sponsor. • May be required as a condition of award (mandatory). • May be offered by the institution in excess of mandatory requirements (voluntary). • Once an award is made, all cost share commitments are considered mandatory and as such represent binding obligations to the University. Office of Sponsored Programs Office of Post Award Administration

  3. Cost Sharing • Mandatory and Voluntary committed cost sharing must be monitored, verified and included in the F&A rate calculation • Lowers the F&A rate and decreases recovery of F&A revenue • Voluntary uncommitted cost sharing • Effort put forth by a PI or senior researcher on a project that was not pledged in the proposal or required by the award (e.g. the PI committed 5% effort but actually devoted 20% effort, the 15% difference would be considered voluntary uncommitted cost sharing) • Does not have to be included in the F&A rate Office of Sponsored Programs Office of Post Award Administration

  4. Types of Cost Sharing Contributions • Cash – expenditures made by institutional funds • Third party – expenditures made by an outside party (also referred to as third party in-kind) • Unrecovered indirect costs (cannot be used without prior approval of the Federal awarding agency) Office of Sponsored Programs Office of Post Award Administration

  5. Cost Sharing Requirements • In order for a cost to be allowable as cost sharing, it must meet all of the requirements of costs to be directly charged to sponsor (reasonable, allowable, allocable) and it must be necessary for the project Office of Sponsored Programs Office of Post Award Administration

  6. Cost Sharing at OSU • Cases where cost sharing is not required as a condition of the award or mandated by the university, and less than 5 percent of an individual's total effort is expected to be contributed to the project, need additional consideration Office of Sponsored Programs Office of Post Award Administration

  7. Cost Sharing at OSU • The Principal Investigator can use the following statement in their budget justification: "Oregon State University assures that the faculty member will make a contribution to this project but that the expected level of effort is not a significant portion of the individual's overall effort." Office of Sponsored Programs Office of Post Award Administration

  8. Cost Sharing at OSU • Effort 5% or more not covered by the sponsor is considered cost sharing • OSU cost share must be documented on the proposal transmittal form • Third party commitment must have letter or email from source Office of Sponsored Programs Office of Post Award Administration

  9. Mechanics of Cost Share • Process has been established identifying department index for each organization. • Cost share method is linked to departmental index. • Cost share method is applied to each fund that requires cost sharing. Office of Sponsored Programs Office of Post Award Administration

  10. Types of Cost Share • Salaries and OPE • Services and Supplies • F&A Costs (Indirect Costs) • Graduate Fee Remissions – use 10632 Account code • Non-OSU (In Kind or Third Party) • Equipment • Volunteer Services • Necessary and integral part of project • Donated Supplies • Must be reasonable and at fair market value Office of Sponsored Programs Office of Post Award Administration

  11. Expenditures That Cannot Be Proposed as Cost Sharing • Unallowablecosts • Salaries over the salary cap • Cost overruns/overdrafts • Purchase price of equipment in current inventory • If a sponsor wouldn’t pay for it anyway, it can’t be proposed as cost sharing Office of Sponsored Programs Office of Post Award Administration

  12. How to Document Cost Share • Salaries, OPE, Services & Supplies, Equipment Charge directly to the cost share index • F&A Costs and GRA Fee Remissions Documented by OPAA • NON-OSU cost share (must be documented) Time – document by memo (should be signed) Goods or services should show fair market value (or going rate for services) Office of Sponsored Programs Office of Post Award Administration

  13. Mechanics of Cost Share • When expenditure is posted to the cost share index, Banner automatically makes an offsetting transfer entry from the departmental index. • Data warehouse reports are available for tracking the cost share budgets and expenditures. • Operating Ledger – multi-year Office of Sponsored Programs Office of Post Award Administration

  14. Cost Share Codes and Titles Grant : N0035S CS ONR Circular Wave Formation Fund: 005051 OAS - CS Blackson N0035A/OAS023 Index: N0035S OAS - CS Blackson N0035A/OAS023 Office of Sponsored Programs Office of Post Award Administration

  15. Cost Sharing Considerations Cash and third party in-kind contributions must meet all the following criteria: • Are verifiable from the recipient’s records • Cannot be used as cost sharing on other federal projects • Are necessary and reasonable for accomplishment of project objectives and allowable • Are not paid by the Federal government under another award • Are provided for in the approved budget when required by Federal agency • Conform to other provisions of A-110, as applicable Office of Sponsored Programs Office of Post Award Administration

  16. Cost Sharing Issues – CAS Requirements • All costs of a project must be classified consistently, regardless of the funding source • Do we classify all cost sharing consistently with the project costs? • Cost sharing can have a significant impact on the F&A rate, auditors and negotiators want institutions to capture all cost sharing, mandatory and voluntary Office of Sponsored Programs Office of Post Award Administration

  17. Common Questions • Can I re-budget line items that were proposed to the agency? • Can the cost of rooms be used as cost share? • Is a contribution from a foreign (international) source allowable as cost share? • Is each cost share budget a formal contract/commitment, with little or no flexibility? Office of Sponsored Programs Office of Post Award Administration

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