1. UW Definition: “Cost sharing is the portion of total costs of a sponsored project that is borne by the UW, rather than the sponsor.” Office of Extramural Support Slide 1 What is cost sharing?

2. Mandatory Voluntary Institutional Mandatory; required by the Sponsor Critical to support the research enterprise Offered “just because” Unavoidable Institutional Examples: NIH Salary Cap cost sharing, PI’s minimum 1% Example: Small awards where PI’s salary would be too great a portion of the awarded amount Office of Extramural Support Three Types of Cost Sharing Slide 2

3. Problem Statement As an institution, we often do not meet our objectives Breakdowns occur at every point of the process and lead to: – Excessive voluntary committed cost sharing – Failure to fulfill our commitments or prove that we’ve done so – Incomplete, incorrect, and inconsistent information in tracking systems – A risk of negative audit outcomes – A reduced F&A rate – Thousands of person-hours spent on reactive problem-solving every year Faculty and staff are confused and frustrated Office of Extramural Support Slide 3

4. Observations The amount, nature and impact of the UW’s cost sharing data is incomplete and indeterminate. The current situation offers no definitions, roles, responsibilities, policies, or procedures which causes the inconsistencies, frustrations and breakdowns we witnessed The large amount of variation within the process showed us the objective of this project is not to increase throughput or reduce processing time, but to reduce the variation Office of Extramural Support Slide 4

5. Cost Sharing Policy Office of Extramural Support Slide 5

6. Cost Sharing Policy Generally, UW’s policy is to minimize institutional and 3 rd party cost sharing on sponsored projects Approval of voluntary committed cost sharing rests with the Dean’s or Director’s office Allowed when mandated or necessary to reflect accurately the resources that must be expended to accomplish the project objectives. Each Division may have their own requirements in addition to this policy. Office of Extramural Support Slide 6

7. Cost Sharing Policy Researchers who engage in sponsored projects will: Comply with University and sponsoring agency regulations regarding proposing, charging, and reporting of cost sharing. Policy applies to both federal and non-federal sponsored projects. Office of Extramural Support Slide 7

8. Cost Sharing Policy Who approves cost sharing? Dean’s/Director’s Office Office of Extramural Support Slide 8

9. Cost Sharing Policy What are the cost sharing impacts? Institution redirects resources to support specific scientific project beyond the funding level provided by the sponsor. Potential limitations to programmatic, administrative and financial capabilities to the researcher and University Reduces flexibility of researchers to conduct other research by obligating effort Increasing requirements for capturing, monitoring and documenting commitments and expenditures Decreases the University’s recovery of indirect costs Office of Extramural Support Slide 9

10. Cost Sharing Guidance Office of Extramural Support Slide 10

11. Cost Sharing Guidance When is it appropriate to offer voluntary cost share? To meet OMB requirements for minimum commitment of PI effort on sponsored projects (1% minimum at UW) To support investigator on an award for which the total direct costs are a small dollar amount To respond to clear indication from the sponsor that cost sharing will increase competitiveness of a specific proposal To establish an institutional commitment for certain federal agencies (NEH, NEA) that use cost sharing to demonstrate the leveraging effect of federal funding Office of Extramural Support Slide 11

12. Cost Sharing Guidance When is it appropriate to offer voluntary cost share? To provide institutional support for a project that is significant in scope and vital to the campus mission To support an institutional investment in a pioneering project with potential significant future sponsored funding To secure sponsored funding for an individual or department in a research discipline in which access to extramural funding is inherently limited Office of Extramural Support Slide 12

13. Cost Sharing Guidance What are alternatives to voluntary cost sharing? Offer resources without making a specific and quantifiable commitment. Limit number of explicit commitments Ex: “PI X will oversee all aspects of the project. University resources are available as needed for the performance of the sponsored project at no direct cost to the project” Office of Extramural Support Slide 13

14. Cost Sharing Guidance What should be offered to meet a cost sharing requirement? Consider two criteria: Is there a new cost to the university? Is there a significant burden for documentation or audit? Office of Extramural Support Slide 14

15. Cost Sharing Guidance Preferred mechanisms for cost sharing UW salaries and fringe benefits F&A costs associated with any cost shared direct expense Unrecovered F&A costs due to a lowered or waived F&A rate Third party cash contributions Office of Extramural Support Slide 15

16. Cost Sharing Guidance Acceptable, but not preferred mechanisms for cost sharing Purchase price of equipment being acquired by the UW Travel expenses Tuition or tuition remission Supplies Volunteer effort, whether coordinated by the university or a third party In-kind contributions from non-UW third parties Office of Extramural Support Slide 16

17. Cost Sharing Key Ideas for Dean’s Offices Office of Extramural Support Slide 17

18. Cost Sharing: Key Ideas for Dean’s Offices Cost sharing may be required, but there are drawbacks for the university and PI. University seeks to minimize cost sharing when possible Voluntary committed cost sharing is discouraged. Although, there may be instances where it’s appropriate. There are alternatives to voluntary committed cost sharing. Cost sharing should be reviewed at the time of proposal submission or when a change is made. Final approval of cost sharing resides with the Dean or Director. Office of Extramural Support Slide 18

19. Cost Sharing: Key Ideas for Dean’s Offices If cost sharing must be approved, preferred mechanisms are based on: a) is there a new cost to the university? and b) is there a significant burden for documentation or audit? All cost sharing contributions should be explicitly identified in the proposal budget The PI is expected to identify cost sharing items, identifying a funding source for each, and seek approval for cost sharing via the Dean’s or Director’s office Colleges/Schools may wish to create forms and formal processes for submitting and reviewing requests to cost share. Office of Extramural Support Slide 19

20. Cost Sharing Key Ideas for PIs Office of Extramural Support Slide 20

21. Cost Sharing: Key Ideas for PIs Minimize cost sharing when possible. Cost sharing regulations derived from OMB Circulars. Standards apply to federal and non-federal sponsored projects. Non-compliance brings risk of penalties, up to suspension or termination of awards. Voluntary committed cost sharing is discouraged, unless appropriate. Alternatives to voluntary committed cost sharing exist. Office of Extramural Support Slide 21

22. Cost Sharing: Key Ideas for PIs Cost sharing should be reviewed at proposal or when change occurs. Dean or director makes final approval of cost sharing. Cost sharing contributions should be explicitly identified in the proposal budget. PI should identify cost sharing items and identify a source for each prior to seeking approval from the Dean’s or Director’s office. Cost sharing commitments cannot be changed without prior sponsor approval. Office of Extramural Support Slide 22

23. Award Setup Office of Extramural Support Slide 23

24. At award setup, OES will enter information into the Projects tab in PeopleSoft Grants After setup, this information is visible in WISDM. Office of Extramural Support Slide 24 Award Setup

25. Cost Sharing Documentation Office of Extramural Support Slide 25

26. Cost Sharing & Commitment Updates Form & Instructions Office of Extramural Support Slide 26

27. Managing, tracking, documenting cost sharing For payroll cost sharing, campus will submit form if: – Missing rows (i.e., was never scheduled) – Corrections to percentage, dates, source funding, etc. – Personnel changes For non-payroll, campus will submit form after transaction has occurred For third party, campus will submit form for goods and services used to meet obligation Office of Extramural Support Slide 27

28. How update forms will be handled Office of Extramural Support Slide 28 All forms will be sent to the Office of Extramural Support (after all appropriate signatures have been obtained) Forms will be reviewed and if there are questions, Dean’s/Director’s office will be contacted for further clarification Data will be entered into the cost share bolt-on

29. Monitoring and reporting of cost share Accountants will draw information from WISDM for invoices and financial reports Office of Extramural Support Slide 29

30. Cost Share Example 1 Office of Extramural Support Slide 30

31. Cost Share Example 2 Office of Extramural Support Slide 31

32. Key Comments Type of cost share is crucial for set up. If not mandatory, considered voluntary, committed. At time of award, verification from sponsor will be needed. If cost share is quantified, will be considered “voluntary, committed”. Must be tracked in the cost share system. May have to report if requested by sponsor. Deans’/Directors’ effort cannot be included as cost share UW-Extension does not use the cost share toolkit mentioned in the guidelines Office of Extramural Support Slide 32

33. Questions? Office of Extramural Support Slide 33