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Award Management - Cost Sharing

 

Cost sharing is the portion of the cost of conducting a research project or program which is not paid for by the sponsoring agency.  It is the University’s share of the cost of the research project or program.  Cost sharing occurs when either the sponsoring agency requires, or the University voluntarily commits, funds beyond those awarded by the sponsoring agency to support the research associated with a particular grant or contract. Once committed, it is important to document the fulfillment of the University’s responsibility for cost sharing, and to maintain compliance with governmental and other regulations.


Cost sharing commitment forms will be required for all cost shared effort regardless of the amount of effort committed to the project.  The previously allowed waiver of a cost sharing commitment form for committed effort of 4% or less is no longer valid.


Cost sharing commitment forms will be required for all NIH K awards when the salary dollars commensurate with the percent of effort mandated by the K-award mechanism (typically 75%) exceeds the maximum amount of salary dollars allowable (K-award salary limitation) as a direct charge to the ledger 5 associated with the K-award. This new requirement for K-award cost sharing commitment forms is in addition to, not a replacement of the annual K-award certification process.


For competing proposals submitted 7/1/12 or later, cost sharing commitment forms will no longer be required at the time of proposal.  Cost sharing commitment forms will be required on a “just in time” basis at the time of award and prior to the release of the ledger 5 account number assigned to the project.  Because the appropriate Deans’ offices continue to require approval of planned cost sharing at the time of proposal, the internal sign off has been revised (see attachment) to capture the required cost sharing information in lieu of the cost sharing commitment form.  When cost sharing is planned, Deans’ office signature is still required on the internal sign off at the time of proposal. Please note, if Third Party Cost Sharing is part of a proposal, a Pre-award Third Party Cost Sharing form will continue to be required as an attachment to the internal sign off at the time of proposal. 


Cost sharing commitment forms should be reviewed for revision on an annual basis at the time of funding renewal.  If necessary, a revised cost sharing commitment form must be submitted to ORPA prior to the release of the internal NOA for the new year of funding.