Campus Cost Sharing Training
Administrative Process Redesign (APR)
Cost Sharing and Commitments
Review of Committee’s Work
Slide 2
APR Team Members
 Ginny Bormann
L&S (English)
 Sarah Gatz
RSP Post-Award
 Tammy Kuhn Martin
Engineering (Dean’s Office)
 Meredith Luschen
CALS (Dean’s Office)
 Debbie Meltzer
Medicine & Public Health (Dean’s Office)
 David Ngo
RSP ERA Team
 Chip Quade
Grad School Information Technology
 Jennifer Rodis
RSP Pre-Award
 Jen Stenjem
RSP ERA Team
Slide 3
APR: What is a Commitment?
Commitments
Effort
Paid
Effort
Non-Effort
Cost-Shared
Effort
Non-Payroll
Cost Sharing
Not Paid By Sponsor
Slide 4
APR: What is cost sharing?
 UW Definition: “Cost sharing is the portion of total costs of a sponsored
project that is borne by the UW, rather than the sponsor.”
Slide 5
APR: Five Types of Cost Sharing
Mandatory
Mandatory
Unavoidable
Examples: NIH Salary Cap cost sharing, PI’s minimum 1%
Voluntary
Critical to support the research enterprise
Example: Small awards where PI’s salary would be too great a
portion of the awarded amount
Offered “just because”
Institutional
Slide 6
Institutional
APR: Where do we find cost sharing and commitments?
Lifecycle of a Grant
PROPOSAL: Commitments are
Offered
Slide 7
AWARD: Commitments
Become Obligations
Cost Sharing & Commitment Setup
Commitments are Fulfilled
Tracking and Management
Documentation & Reporting of Fulfillment
APR: Customer Feedback
“Cost share results in a lot of wasted admin time that could be spent on research.”
“Cost sharing is an administrative nightmare.”
“Where can I look for guidance?”
“Where can I find a policy?”
“We don’t do anything to really manage Cost share.”
“Cannot find all projects with cost share, there is no query out there to get a list of all accounts that have cost share. This makes if
very difficult to manage on a pro-active basis.”
“Find a solution that is easy to use and understand, and that
is accessible for everyone to use.”
“We need education, training and guidance.”
“There is no accurate or reliable cost share data available right now.”
Slide 8
APR: 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
Slide 9
APR: 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
Slide 10
APR: Building Blocks for the Next Phase
Understand sponsors’
standards and ensure our
procedures meet those
standards
Provide guidance to faculty and staff
about when to offer voluntary cost
sharing
Understand and minimize all research costs associated with cost
sharing
- Consider both reportable cost sharing and lost
revenue associated with cost sharing
Slide 11
11
APR: Solutions
• UW Cost Sharing Policy
•
http://www.rsp.wisc.edu/costsharing/costsharing_policy_20101021.pdf
• UW Cost Sharing Guidance
•
http://www.rsp.wisc.edu/costsharing/costsharing_guidance_20101021.pdf
• Key Ideas for Dean’s Offices
•
http://www.rsp.wisc.edu/costsharing/costsharing_keyideas_20100131.pdf
• Key Ideas for PI’s
• http://www.rsp.wisc.edu/costsharing/costsharing_keyideas_PI_20101021.pdf
• Cost Sharing Tool
•
https://www.rsp.wisc.edu/services/admin/CostShareToolkit/CostShareToolkit
1.cfm
Slide 12
UW-Madison Cost Sharing Policy
Slide 13
Cost Sharing Policy
• Generally, UW’s policy is to minimize institutional and 3rd
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.
Slide 14
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.
Slide 15
Cost Sharing Policy
• Who approves cost sharing?
• Dean’s/Director’s Office
Slide 16
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
Slide 17
UW-Madison Cost Sharing Guidance
Slide 18
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 indicate a level of effort for a PI who has $0 appt at UW
• 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
Slide 19
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
Slide 20
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”
Slide 21
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?
Slide 22
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
Slide 23
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
Slide 24
Cost Sharing Key Ideas for Dean’s Offices
Slide 25
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.
Slide 26
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.
Slide 27
Cost Sharing Key Ideas for PIs
Slide 28
Cost Sharing: Key Ideas for PIs
• Minimize cost sharing when possible.
• Cost sharing regulations derived from OMB
Circulars. Standards apply to federal and nonfederal 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.
Slide 29
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.
Slide 30
Cost Sharing Approval Tool
Slide 31
Cost Sharing Approval Tool
Slide 32
Cost Sharing Approval Tool – Dean’s Summary
Slide 33
Cost Sharing Approval Tool – Create PDF
Slide 34
Cost Sharing Approval Tool – PDF
Slide 35
Cost Sharing Approval Tool
• The approval tool should be filled out by the Dept
Administrator and submitted to the Dean’s office for
review (via attachment/email or WISPER)
• The tool will establish a clear understanding on cost
sharing expectations & will be used to support
decision making regarding cost sharing approval.
Slide 36
Cost Sharing Approval Tool & WISPER
Slide 37
Cost Sharing Approval Tool & WISPER
Slide 38
Cost Sharing Approval Tool & WISPER
Slide 39
RSP Proposal Submission
• Before submission is okay’d, RSP will be looking for:
• Indication of cost share plan (ex: Cost Share Tool)
• Indication cost sharing plan being approved (Dean’s approval)
• Ensure cost sharing is documented in budget
• Ensure preferred cost sharing mechanisms are used
• Indicate in notes who will be responsible for collection of cost sharing
information
Slide 40
RSP Award Setup
Slide 41
RSP Award Setup
• At award setup, RSP will be using the Cost
Sharing Approval Tool and Projects tab to enter
information into PeopleSoft Grants
• After setup, this information is visible in
WISDM.
Slide 42
Cost Sharing Documentation
Slide 43
Cost Sharing & Commitment Updates Form & Instructions
Form: http://www.rsp.wisc.edu/forms/costshare.pdf
Instructions: http://www.rsp.wisc.edu/costsharing/UpdateFormInstructions.pdf
Slide 44
How campus will manage, track, & document 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 (see Instructions)
• For third party, campus will submit form for
goods and services used to meet
obligation (see Instructions)
Slide 45
How CSWG will handle update forms
• All forms will be sent to
costshare@rsp.wisc.edu
• Payroll cost share: forms will go to pre-award
staff
• Non-payroll and third party:
– Forms will go to accountant;
– Accountant will ensure info is acceptable for entry;
– Data entry will be done by accountant or
intern. In future, upload tool will be available.
.
Slide 46
How RSP will handle monitoring and reporting of cost share
• Accountants will draw information from
WISDM for invoices and financial reports
Slide 47
RSP Cost Share Working Group
Slide 48
RSP Cost Share Working Group
 Paul Cameron
RSP Post-Award
 Sarah Gatz
RSP Post-Award
 Cheri Gest
RSP Pre-Award
 Tim Duanmu
RSP Post-Award
 David Ngo
RSP ERA Team
 Jennifer Rodis
RSP Pre-Award
 Nate Rusch
RSP Pre-Award
Contact: costshare@rsp.wisc.edu
Slide 49
Business Processes: Identified, Improved, & Documented
 How will CSWG handle the CS mailbox
 How will campus get cost sharing approved
 How will RSP review cost sharing at proposal
 How will RSP setup cost sharing at award
 How will campus manage/track/document cost sharing
 How will RSP investigate/fix cost sharing errors
 How will RSP handle financial monitoring and reporting of cost
sharing
 How will CSWG Subteam handle update forms
Slide 50
• Questions?
Slide 51