Contracts and Grants
Accounting
Cost Share: Budgeting, Spending
and Reporting
Procedures Effective July 1, 2014
C&G Training Presentation
May 21, 2014
Cost Share Commitment
•
Cost sharing committed on a award means designated costs are covered
by the University, not by the sponsor.
– Commitment may include salaries, equipment/supply purchases, waived F&A,
etc., as defined in the award documentation and allowable
– Cost sharing can be funded by donations/gifts, in-kind contributions, start-up
or retention funds, or non-federally sponsored funding source (provided it has
been approved)
•
Once a cost sharing commitment is made, cost share becomes
mandatory and the University is required to measure, track, report on,
and meet that commitment.
– UCOP requires a centralized tracking system to capture committed cost
sharing amounts
– New C&G functionality facilitates the identification of cost share transactions
throughout the life of the award
2
Effective July 1, 2014
Current Challenges
System and Process to Address Challenges
Inconsistent processes across campus for
meeting, reporting on cost share commitments
New procedures for budget set up, coding and
monitoring spending, and closeout/final report
CGA knows only the $ amount of the
commitment, not how the department plans to
fund that commitment
PI’s plan when committing cost sharing $ in the
proposal will be used by the RA to create a cost
share budget; provide budget to CGA at set-up
Lack of consistent tracking method (which can
result in a single expense being used to meet
cost sharing commitments on multiple awards)
Each award has a unique cost share CF1 value that
is used on all transactions, including salary and F&A
(overhead rate auto-calculated, applied)
Lack of a consistent recording methodology
means there is no way to produce a crosscampus cost share report
Project Costing module in BFS captures all cost
sharing transactions (including those not in BAIRS
reports) using analysis type and PC ChartFields
Cost sharing treated as an afterthought at the
end of the award -- no method to ensure
commitment is monitored/met during award
Initial budget establishes how commitment will be
met, coding expenses as they are incurred
identifies cost sharing transactions in GL
3
Cost Sharing Process Summary
AWARD SET UP
• Define budget allocations, amounts based on commitments made in award docs
• Submit budget to CGA using new CF1 in ChartStrings (within 48 hours of NOA)
• Transfer budgeted allocations via 7xxxx transfer, use the CF1
• Request ongoing payroll costs (or percentage of payroll costs) be coded with the cost share CF1
ChartString
MANAGING TRANSACTIONS THROUGHOUT AWARD
• Code cost shared expenses, purchases using CF1
• Throughout the life of the award, department monitors spending against the budget
• If budget revision required, submit one to CGA using budget submission process
CLOSE OUT REPORT
• Submit Cost Share Contribution Report and supporting documentation to C&G along with
Closeout Certification (within 70 days of award expiration)
• CGA analyst does a final review to ensure that cost share commitments have been met,
prepares final report for Sponsor as required, CGA certifies the final report
4
Award Setup Timeline
Award Setup Process
Day 4
Day 0
Day 2
Day 3
Notice of
Award Email
from SPO
Submit
Complete
Budget
Validate
Budget,
setup
award
2 Days
At NOA, the CSS-RA/Department has 2 days to
submit complete budget information, including
cost sharing, to CGA.
Spending
Authorized
(email from
CGA)
2 Days
When the budget is received, CGA has 2 days to verify
accuracy and completeness, setup the award in BFS,
then notify CSS-RA/Department.
If the submitted budget is inaccurate or
noncompliant, the award setup will be delayed.
5
Budget at Award Set up
•
NOA alerts CGA that a new award has cost sharing, and the total committed
amount. CGA will create a specific CF1 value in BFS to use on cost share
transactions (CF1 associates these transactions with the award).
– A CF1 value in the 20000-29999 range identifies transactions as cost share when
used in a ChartString with a non-grant fund*
•
RA/Department creates the award budget, determining BUDSUM categories
(for personnel effort, equipment, travel, unrecovered IDC, etc.) as well as
specific $ amounts that meet the cost share commitment defined in NOA
– Look up the new CF1 in BFS (use the SPO award number) to use in Cost Share
rows in award budget, due to CGA within 48 hours of the NOA
– Each Cost Share row has a F&A row in the budget
•
Once the award is activated, unit providing the cost share transfers designated
budget in BFS using 7xxxx
– Unit providing the cost share requests recharge units and payroll use cost share
ChartString with CF1
*When the fund source for cost sharing is a faculty start-up or
retention fund, using a CF1 from the 2 range in combination with
that fund “trumps” the Management Code 3 series CF1 requirement.
6
7
Example Budget at Award Set up
• The NOA from SPO includes this Cost Sharing Commitment for one fiscal year:
– College of Engineering
– VC Research
– Other University funds
$75,000
$75,000
$45,000 ($22.5 from EECS + $22.5 from Chem E)
$195,000 total cost share commitment (DIR+IDC)
• The budget has a row for each direct cost and associated indirect cost. Using the
CF1 provided by CGA in each ChartString identifies the row as Cost sharing.
CGA will create the PC ChartFields for each
ChartString during the award set up process.
Select the expense category that reflects the award’s spending plan (salary, supplies, etc.)
Transaction Type Account
Budget - COE
Budget
Budget - VCRA
Budget
Budget -University
Budget
Budget -University
Budget
55000
57900
55000
57900
55000
57900
55000
57900
Account Description Fund
BUDSUM General
COE fund
Supplies
BUDSUM Indirect
COE fund
Cost Recovery
BUDSUM General
VCRA: 69749
Supplies
BUDSUM Indirect
VCRA: 69749
Cost Recovery
BUDSUM General
U Fund - EECS
Supplies
BUDSUM Indirect
U Fund - EECS
Cost Recovery
BUDSUM General
U Fund – Chem E
Supplies
BUDSUM Indirect
U Fund – Chem E
Cost Recovery
Dept
Prg Cd
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
44
cost share
Dept providing
80
cost share
CF1
CF2
Amount
PC BU
Project
Activity
Analysis Type
200241
-50,000
GM100
1000004
01
CBU
200241
-25,000
GM100
1000004
01
CBU
200241
-50,000
GM100
1000004
01
CBU
200241
-25,000
GM100
1000004
01
CBU
200241
EHSIS
-15,000
GM100
1000005
01
CBU
200241
EHSIS
-7,500
GM100
1000005
01
CBU
200241
EEXXX
-15,000
GM100
1000006
01
CBU
200241
EEXXX
-7,500
GM100
1000006
01
CBU
Here, “Prof. X” from Chem E plans to use his endowment funds for Cost Sharing.
Using Prof. X’s CF2 in the ChartString means he will see this in PI Portfolio.
8
Coding Direct Costs
along with related indirect costs
• When budgeting, create a cost share line for each expense category of
direct costs (faculty and staff salary and related fringe benefits, equipment,
travel, etc.) as well as a line for related indirect costs
Transaction Type Account
Budget
Budget
Actual Spending
Actual Spending
Actual Spending
Actual Spending
55000
57900
IF the fund used is a facultymanaged fund, use that person’s CF2
Use the cost-share CF1
created for this award
Use a nongrant fund
Account Description Fund
BUDSUM General
Gift Fund
Supplies
BUDSUM Indirect
Gift Fund
Cost Recovery
55040
General Supplies
Gift Fund
57990
Indirect Cost
Recover-C&G
Gift Fund
55040
General Supplies
Gift Fund
57990
Indirect Cost
Recovery – C&G
Gift Fund
Dept
Prg Cd
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
44
cost share
Dept providing
80
cost share
Dept Providing
44
cost share
Dept Providing
80
cost share
CF1
CF2
Amount
PC BU
Project
Activity
Analysis Type
200241
EHSIS
-10,000
GM100
1000004
01
CBU
200241
EHSIS
-5,000
GM100
1000004
01
CBU
200241
EHSIS
6,000
GM100
1000004
01
CAC
200241
EHSIS
3,000
GM100
1000004
01
CFA
200241
EHSIS
4,000
GM100
1000004
01
CAC
200241
EHSIS
2,000
GM100
1000004
01
CFA
• When spending, use the award’s cost share CF1 in the chartstring. Indirect
costs will be automatically calculated at the appropriate rate for each costshared direct expense as it is incurred (shaded rows above)
9
Coding Cost Shared Effort
• Cost shared effort (even if included without a dollar value in the award docs)
needs to be tracked in BFS. At award set up, request HR allocate the
appropriate % of salary* to the cost-share chartstring/ CF1
– Indirect costs will be automatically calculated at the appropriate rate as
salary expense is incurred (shaded row below)
Transaction Type Account Account Description
BUDSUM Academic
50000
Budget
Salaries
BUDSUM Indirect
57900
Budget
Cost Recovery
Actual Spending
Actual Spending
Fund
19900
19900
50210
Faculty
19900
57990
Indirect Cost
Recover-C&G
19900
Dept
Dept providing
cost share
Dept providing
cost share
Dept providing
cost share
Dept providing
cost share
Prg Cd
CF1
CF2
Amount
PC BU
Project
Activity
Analysis Type
44
200241
EHSIS
-10,000
GM100
1000004
01
CBU
80
200241
EHSIS
-5,000
GM100
1000004
01
CBU
44
200241
EHSIS
10,000
GM100
1000004
01
CPY
80
200241
EHSIS
5,000
GM100
1000004
01
CFA
• In ERS, cost-sharing salary transactions (coded with a CF1) are NOT
automatically shown “above the line” in the cost share column.
– RA/Effort Coordinator must manually adjust Effort Report to reflect
appropriate percentage of cost share effort on an award, i.e., move the
% above the line
*Note: if the employee whose salary will be cost shared is NOT
already in the ERS system (i.e., not paid from a federal fund)
Payroll will need to add that person to the ERS system.
10
Coding Waived F&A
• Waived Indirect (F&A) cost sharing occurs any time the Sponsor and University
agree to recover less than the federally negotiated indirect cost rate.
– If the rate is lower than the current negotiated federal rate and the sponsor has
no alternative agreement/policy, approval from UCOP is required
• The overhead rate that CGA sets up in the system automatically “splits” F&A on
expense transactions into the cost shared portion and the waived portion.
Transaction Type Account
Budget
Budget
Actual Spending
Actual Spending
Waived F&A on
Actual Spending*
55000
57900
55040
57990
57990
Account Description Fund
BUDSUM General
Gift Fund
Supplies
BUDSUM Indirect
Gift Fund
Cost Recovery
General Supplies
Indirect Cost
Recover-C&G
Indirect Cost
Recover-C&G
Gift Fund
Gift Fund
Gift Fund
Dept
Prg Cd
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
44
cost share
Dept providing
80
cost share
Dept providing
80
cost share
CF1
CF2
Amount
PC BU
Project
Activity
Analysis Type
200241
EHSIS
-10,000
GM100
1000004
01
CBU
200241
EHSIS
-5,000
GM100
1000004
01
CBU
200241
EHSIS
10,000
GM100
1000004
01
CAC
200241
EHSIS
3,000
GM100
1000004
01
CFA
200241
EHSIS
2,000
GM100
1000004
01
WFA
• At closeout, both the cost shared F&A (pink line) and the waived F&A (green
line) are reported to the sponsor, depending on the sponsor’s requirements
* Waived F&A on Actual Spending is only recorded in the
BFS project costing module. It is not available in the GL
and therefore not currently availably on BAIRS reports.
11
Coding In-Kind Cost Share
• In-kind contributions represent the value of non-cash contributions
(equipment, services) that are a benefit to or are used for award activities. If
in-kind contributions are committed as cost share, they must be included in
the cost share budget, recorded in BFS, and included on the final report
– Sponsor terms determine if F&A is charged on in-kind contributions
Transaction Type Account
Budget
Actual Spending
Actual Spending
54100
54110
57990
Account Description Fund
BUDSUM Computer
Donations
Equip Inventor
Computer Equipment
Donations
=>5k
Indirect Cost
Recovery (per
Donations
sponsor terms)
Dept
Prg Cd
Dept providing
44
cost share
Dept providing
44
cost share
Dept providing
cost share
80
CF1
CF2
Amount
PC BU
Project
Activity
Analysis Type
200241
EHSIS
-10,000
GM100
1000004
01
CBU
200241
EHSIS
10,000
GM100
1000004
01
CTP
200241
EHSIS
GM100
1000004
01
CFA
• “Spending” in-kind contributions in BFS ensures these assets are used only
once and only for one award. Use the award’s specific cost share CF1 in the
chartstring to ensure in-kind costs are documented on the Cost Sharing
Contribution Report for the sponsor.
12
Spending, Monitoring, and
Budget Revisions
• Department periodically reviews expenses to see that Cost
Share transactions meet award commitment
• cost share transactions are identified by having a non-grant fund* and a
cost share CF1
• Department will NOT see cost share F&A or 3rd party on BAIRS report
• Periodic Cost Share reports, when required, are generated by
RA and CGA and sent to the sponsor along with the invoice
• To revise cost sharing allocations, submit a revised (net 0)
budget to CGA
* A very rare exception is Matching Program Income, which
allows income earned on a grant to be used for cost sharing.
13
Reporting at Award Close
• Continue to use the existing Cost
Sharing Contribution Report (until
such time as a new report is
available)
– Submit a copy of in-kind contribution
documentation
• Submit Contribution Report along
with the Closeout Certification form
(due within 70 days of award
expiration)
14
Contracts & Grants
Implementation Project
http://controller.berkeley.edu/departments/
contracts-grants-accounting
contractsgrants@berkeley.edu
15
Cost Share Analysis Types
Type
Code
Description
Salaries and Benefits
CFR
CPY
Cost Share Fringe
Cost Share Payroll
Budget
CBA
CBU
Cost Share Budget Adjustment
Cost Sharing Budget
Commitments
CAJ
CCO
CCR
Commitment Adjustment
Cost Sharing Commitment
Commitment Reversal
Other
CAC
CFA
CGE
Cost Sharing Actuals
Cost Sharing F&A
Cost Sharing GL Expense
Waived F&A
WFA
Waived F&A
(third party cost share)
(award to award cost share)
CTP
CAA
Third Party Cost Share
Award to Award Cost Share
16