COST SHARING
Objective:
To understand the requirements related to
cost sharing to ensure compliance with
federal regulations and FSU Policy.
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CReATE ver. 04/13 © 2013 Florida State University. All rights reserved
Today’s Agenda
 What is Cost Sharing?
 FSU Policy
 FSU Procedures
 Cost Sharing Expenditures
 Agency Specific requirements
 Cost Sharing Accounting in OMNI
 FACET
 Common Issues
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What is cost sharing?
 Project costs not borne by the
sponsor
 Also known as “Matching”
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FSU Cost Sharing Policy
 http://www.research.fsu.edu/contractsgrants/costsha
ring.html
 Committed


Mandatory – required by agency
Voluntary




Not required by agency
Reflected in proposal *
Must account for and report
Cost share amount not met, award reduced
proportionately
 Uncommitted (Project Enhancement)
 Not quantified
 Do not have to account for and report
* - quantified in the award document, proposal budget, or proposal narrative
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Cost Sharing Procedures
 http://www.research.fsu.edu/contractsgrants/docu
ments/csprocedures.pdf
 Sources






Unrecovered F&A
Personnel costs (FACET)
Other direct costs (travel, tuition, consultants,
equipment, etc.)
Other sponsored agreements when
appropriate/allowable
Award-related (program) income when University is
authorized to expend such income
3rd party contributions
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Cost Sharing Procedures
 Cost Share Commitment form
 http://www.research.fsu.edu/contractsgrants/docum
ents/cs_commit_form.pdf
 Need when Advance requested
 Proposal
Prepared and submit to SRS as part of package
Award
 SRS confirms cost sharing sources at the same
time negotiating/executing the sponsor award


 The sponsored project budget will not be activated
until all cost sharing information has been
received

SRAS sets up sponsored and cost share child
budgets at same time
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OMB Circular A-110, Subpart C,
Cost Sharing Expenditures
 Allowable according to OMB Circular A-21
 Directly related to the project objectives
 Not included on any other federally-assisted
awards
 Not paid by the Federal government unless
authorized by statute
 Verifiable from recipient’s records
 Need to spend at the same rate as spending
on the sponsored project
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Allowable Cost Sharing Expenditures
The following are types of expenses that are
allowed as Cost Sharing:

Salaries of faculty and technical staff working on
project funded from source other than project




Includes related fringe benefits
Other direct costs, e.g. travel, laboratory
supplies, equipment, etc. benefiting project
F&A on cost sharing MTDC
Unrecovered F&A on project

e.g. funded rate = 8% vs. institution rate = 47%
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Unallowable Cost Sharing Expenditures
The following are types of expenses that are
NOT allowed as Cost Sharing:

Expenses that University has defined as F&A,
such as administrative salaries/supplies,
equipment depreciation, and O&M expenses



CAS exemption must be approved to charge
F&A costs directly as cost sharing
expenditures
Salary dollars in excess of regulatory salary
caps, such as the NIH salary cap
Unallowable costs as defined in Section J of
OMB Circular A-21
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3rd Party Contributions
 3rd Party Cost Share Commitment Form
 Completed to document what/amount of contribution
proposed
 Types
 Donate services


Donate equipment, supplies, travel, facilities



Employee's regular rate of pay plus fringe benefits (cannot
apply F&A)
Must document valuation basis
Fair market value
Volunteer


Value at FSU rate of pay (similar work)
Labor market rate of pay if no similar work at FSU
 3rd Party Contribution Certification Form
 Required for reporting preparation
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What are the cost sharing policies of
some major funding agencies?
IT IS IMPORTANT TO ALWAYS REFER TO THE SPECIFIC AGENCY
GUIDELINES AS AN AGENCY MAY HAVE REQUIREMENTS THAT DIFFER
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FROM THE CIRCULAR.
National Science Foundation (NSF)
 Statutory requirement that each grantee
share in the cost of research projects
resulting from unsolicited proposals is no
longer effective as of June 1, 2007
 Effective January 2011, unless cost sharing
requirements are included in the program
solicitation, it is not allowed
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National Science Foundation (NSF)
When NSF Cost Sharing is Required



NSF mandatory cost sharing will only be required when explicitly
authorized by the NSF Director
Contributions derived from other Federal funds or counted as
cost sharing toward projects of another Federal agency may not
be counted towards meeting the specific cost sharing
requirements of the NSF grant
Failure to provide the level of cost sharing reflected in the
approved grant budget may result in termination of the NSF
grant, disallowance of grant costs, and/or refund of grant funds
to NSF
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National Science Foundation (NSF)
When NSF Cost Sharing is NOT Required
 If cost sharing included in proposal, then proposer risks the
proposal being returned without review or declined
 Waiver of any indirect costs to which FSU is entitled would be
considered voluntary committed cost sharing and is therefore
prohibited by NSF (i.e. FSU charges the federally approved IDC
rate on NSF awards)
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Public Health Service
 A number of PHS grant programs require non-
Federal participation in the costs of grantsupported activities; the extent of that
participation is specified by PHS or is negotiable
 PHS no longer has a general legislative
requirement that recipients of research grants
must cost share on their projects. However,
specific program legislation may require grantees
to share in the cost of the project or the PHS
awarding office may administratively apply a
matching requirement
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US Department of Education
Cost sharing required on certain grants
 Each state receiving a grant under the State Grant Program or
Teacher Recruitment Grant Program must cost share at least
50% of the amount of the grant award annually.
 Each partnership receiving a grant under the Partnership Grant
Program or Teacher Recruitment Grant Program must provide
from non-federal sources an amount that is at least 25 percent
of the TQE grant for the first year, 35 percent for the second
year, and 50 percent for all subsequent years.
NOTE: The matching contributions may be in cash and/or in-kind.
In any fiscal year, grantees whose approved applications and
budgets identified an amount of match that exceeds the statutory
minimum for any project period must meet that higher amount.
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Cost Sharing Accounting
 “Child” Budgets
Parent
 Budget
checking at
child level – must have
sufficient balance at
child level to “pass”
budget checking
Direct Child
700001
Indirect Child
700001
Cost Share
Child
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Cost Sharing Budget Setup Matrix
Source of
Funds
(Fund Code)
Funding
Combination
Fund
Transfer
E&G (1xx/2xx)
DeptID+1xx+SP Project
No
Auxiliary (3xx)**
DeptID+3xx+SP Project
OR
DeptID+555+SP Project
Case by Case
C&G (520-540)
DeptID+5xx+C/S Project
No
SRAD/PI Support (550)
DeptID+555+SP Project
Yes
(Journal Entry)
FSU Foundation
DeptID+555+SP Project
Yes/FSUF Ck
FSU Rsch Foundation
DeptID+555+SP Project
Yes/FSURF Ck
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** - only certain types of auxiliaries are allowable as cost share
Effort Commitment Only
 Proposal contains key personnel
effort commitments not supported by
sponsor funding
 No dollar amount proposed as cost
sharing
 Cost share budget not required
 Exception when related to instruction
 Commitment must be met

Documented in FACET application
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Cost Sharing Reporting
 Mandatory/Voluntary Committed
 SRAS staff responsible for preparing and
submitting (when required) to agency
 Source of report are cost sharing budget
expenditures in OMNI
 Other project used as cost sharing

Department provides ledger of expenditures to
be used for cost sharing
 3rd party cost sharing documented on
certification form
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Cost Sharing and FACET
 Faculty Assignments Commitments &
Effort Certification Tracking (FACET)
 Enter total effort on project on
certification page
 A-21 page view – automatically
allocates effort
Direct Charged Salaries
 Committed Cost Sharing
 Over the Cap (OTC)
 Uncommitted Cost Sharing

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Cost Sharing and FACET
 Agency Salary Cap (e.g. NIH)
 Salary Cap must be funded from a nonsponsored source of funds to reflect
institution support
 OTC portion is not allowed to be included
to meet cost sharing requirement
 Fund 556 created to account for the OTC
portion of the salary funding
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Common Issues
 Setting up cost share budget at Advance
stage
 Department not “spending” cost share budget


Spend at same rate as that of sponsored project
Cost sharing expenditures must be reflected in OMNI
budget established
 Multi-year projects

Cost sharing budget should be increased and funds
transferred (when appropriate)
 Over spending on cost sharing budget

May cause budget checking issues at direct child if
causes parent to be over budget
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QUESTIONS
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Cost Sharing - Office of Research