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COST SHARING Colorado State University Sponsored Programs Mary Atella Betty Eckert Candyce Jeffery Carmen Morales

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Presentation on theme: "COST SHARING Colorado State University Sponsored Programs Mary Atella Betty Eckert Candyce Jeffery Carmen Morales"— Presentation transcript:

1 COST SHARING Colorado State University Sponsored Programs Mary Atella Betty Eckert Candyce Jeffery Carmen Morales

2 Cost Sharing / Matching  Sharing of project costs by sources other than the Sponsor’s funds awarded in support of a project  More than a “token amount” (i.e. 1% required by NSF)  Normally on grants or cooperative agreements, NOT contracts  Types of costs: any allowable direct costs that benefit the project and are verifiable

3 Cost Sharing Criteria  A-110 (now also called 2 CFR 215) states that cost sharing must be : – verifiable in recipient’s records – not included as contribution for other federal projects federal projects – necessary and reasonable for project – allowable under applicable cost principles – not paid by the Federal Government on another award unless approved another award unless approved – provided for in approved budget when required by the federal awarding agency required by the federal awarding agency

4 Types of Cost Sharing  Mandatory Cost Share – Required by Sponsor as condition of award  Voluntary Budgeted Cost Share – Not required by the Sponsor, but becomes a legal requirement when included in Proposal budget requirement when included in Proposal budget – Strongly discouraged by University policy  Unbudgeted Voluntary Cost Share – Not quantified in the proposal – Reflects faculty effort during the academic year – No separate account is needed for tracking

5  PI annual salary is $120,000  PI proposes (commits) 50% effort to project  Budget shows PI salary at $30,000  PI certifies 50% to the project $120,000 x 50% = $60,000 Less paid from grant =($30,000) Cost Share = $30,000 Cost share must be documented. Voluntary Budgeted Cost Share

6 Unbudgeted Voluntary Cost Share  PI annual salary is $120,000  PI budgets (commits) 50% effort ($60,000) to the project  PI certifies 60% effort to the project The 10% effort over and above the budget (commitment) is voluntary uncommitted cost share and does not require documentation

7 Leveraging Funds  Leveraging vs. Cost Sharing - Leveraging includes other associated programs - Leveraging includes other associated programs related to proposed activity related to proposed activity - May have separate scope of work, performance period, and budget period, and budget - Described in narrative without detailed budget information, if possible; NOT shown as cost information, if possible; NOT shown as cost sharing or matching sharing or matching - Include statement in proposal to clarify leveraging is NOT cost sharing and will not be leveraging is NOT cost sharing and will not be documented as such documented as such

8 Accounting for Cost Sharing  Creation of Dedicated (Companion) Accounts - Allows for separate/accurate documentation of contributed costs for inclusion on financial of contributed costs for inclusion on financial reports reports - Linked to sponsored project account  Creation of object codes within accounts

9 CSU’s Process for Creating Dedicated Accounts  Internal forms: – Proposal Approval Form (SP-1) (pre-award) – Institutional Commitment form (pre-award) – Request for Dedicated Account Form (post-award) (post-award)  No account needed if only cost sharing F&A

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14 Special Documentation in lieu of Dedicated Accounts Special Documentation in lieu of Dedicated Accounts Special documentation is needed at pre- and post-award stages for:  “Third party” contributions, cash or in- kind  Other institutional contributions – land, equipment, donated services, tuition differential, etc.

15 Unrecovered F&A  Use of unrecovered F&A requires prior approval of Federal sponsor  No separate account needed to document unrecovered F&A only  Reported to sponsor on financial reports when mandatory

16 NSF Cost Share  New policy on Cost Sharing: – 1% statutory requirement – no longer required on unsolicited proposals proposals

17 NIH Salary Cap  Limitation of Salary Rate – Legislatively mandated  University Documentation – via dedicated cost share account

18 NIH Salary Cap--Example  Individual with 50% effort per month Annual base salary= $190,000 or $15,833.33/month Annual base salary= $190,000 or $15,833.33/month Sponsor salary limit= $180,100 or $15,008.33/month Sponsor salary limit= $180,100 or $15,008.33/month University share= $ 9,900 or $825/month University share= $ 9,900 or $825/month Actual salary= $ for 50% effort/month Sponsor share= $ 7, for 47% effort/month Univ. share= $ for 3% effort/month

19 USDA Joint Venture Agreements (JVA)  JVAs require cost sharing (80% Sponsor/20% Recipient)  F&A is not allowed for State Cooperative Institutions  USDA will allow unrecovered F&A to meet the match requirement USDACSU ReimbursementContribution Total Direct Costs$100, % F&A Research Rate-0-$45,000 Total$100,000$45,000

20 Monitoring of Cost Share Accounts  Department/College – transfers budget to cost share account – ensures that cost share commitment is met met – expenditures should occur on an on-going basis during the life of the project basis during the life of the project  Sponsored Programs – monitors on routine basis, and – reports to Sponsor as required

21 Consequences of Not Meeting Cost Share  Total sponsor costs may be reduced  Possible termination of award, or  Could constitute a violation of the T&C of award so serious as to provide grounds for subsequent suspension or debarment (NSF)

22 Topics for Discussion  Please share with us the most unusual cost share you have provided.  Do you have faculty who are convinced that they will receive a more favorable score if cost sharing is provided? How do you handle this situation?  How do you handle “unplanned” cost-share created by over-expenditure?  Use of program income as cost-share?  Faculty volunteer services?  How do you document the 1% NSF statutory requirement?

23 COST SHARE SESSION Colorado State University Sponsored Programs


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