Cost Share Fundamentals
Learning Objectives
Todays presentation will focus on:
• Cost share – The What and Why
• The different types of cost sharing
• Sponsor requirements pertaining to cost
sharing
• Proposal Preparation
• Documenting and Reporting
• Monitoring
What is Cost Sharing
 A sponsored program cost that is not reimbursed
by the sponsor.
“That portion of project or program
costs not borne by the sponsor."
 Cost sharing occurs when the institution or a
third party contributes toward the cost of a
sponsored program.
 Quantifiable
Why Cost Share?
• Required - under the Request for Proposal (RFP)
• Essential – sponsors are increasingly looking for
multi-disciplinary efforts
• Human and financial capital beyond sponsor’s
funding is critical for success
Types of Cost Sharing
• Mandatory: A required condition of an award or agreed to by
the institution and sponsor during sponsored agreement
negotiation.
• Voluntary committed: Not required by the sponsor, but
proposed in the budget or narrative with no corresponding
sponsor funding requested or awarded.
• Voluntary uncommitted: Cost sharing that is over and above
that which is identified and budgeted for in a proposal and
award.
• None – no cost sharing
Examples of Cost Sharing
 Cost sharing examples include:
• Personal service
• Other than personal service (OTPS)
• In-kind contributions
• Third party
Examples of Cost Sharing (Cont’d)
 Personal Service - the effort of the PI and/or employees
devoted to the sponsored program. This effort, including
employee benefits, may be cost shared if those costs are not
charged directly to the sponsored program.
 Other than Personal Service (OTPS) – anything other than
personal service
For Example:
Travel, equipment, supplies, unrecovered F&A costs,
volunteers and tuition.
Examples of Cost Sharing (Cont’d)
 In-kind contribution
• noncash contribution for which a cash value
must be determined (e.g., volunteer services).
 Third Party
• contribution or donation of cash or services to a
sponsored program by an external entity.
Cost Sharing Characteristics
 Allowable
• Costs permissible as a direct charge
 Necessary
• Costs required for successful completion of the
project
 Allocable
• Costs that may benefit more than one project
must be divided among those projects in ratio to
usage
Cost Sharing Characteristics
 Reasonable
• Costs that are estimated at fair market value
 Documented (detailed)
 Consistent
• Documentation and accounting of cost shared
expenditures are the same as those of the
sponsored program expenditures
Federal Requirements
Office of Management and Budget (OMB)
• Office of Management and Budget (OMB) Uniform Guidance
2 CFR Part 200 defines the federal requirements on sponsored
programs
• 200.306 Cost Sharing or Matching:
o Clarifies policies on voluntary committed cost sharing
o Stipulates that voluntary committed cost sharing is not
expected under federal research proposals and cannot be
used as a factor during the merit review of the proposal
Office of Management and Budget (OMB) Cont’d
o Cost sharing may only be considered when required by
regulation and transparent in the notice of funding
opportunity.
o Only mandatory cost sharing or cost sharing included in
the project budget must be included in the organized
research base for computing the indirect cost rate or
reflected in the allocation of indirect costs.
Office of Management and Budget (OMB) Cont’d
Case Study – DHHS Salary Cap

Dr. Smith’s base salary is $250,000, which exceeds the NIH cap of
$199,700 (for calendar year 2010). For his NIH award, he has committed
40% effort under the sponsored award and 20% effort will be cost shared.
_______________________________________
% of salary allowed Dr. Smith’s base salary is $250,000, which is under
the NIH award:
40% of $199,700 = $79,880 (31.95% of total salary)
 % of salary allowed under the C/S award:
20% of $199,700 = $39,940 (16% of total salary)
 % charged to campus’ NIH Cap Award:
60%-31.95%-16% = 12.05% of total salary ($30,125)
______________________________________________
The remainder of his salary will be charged to the OIA award.

Office of Management and Budget (OMB) Cont’d
 Under the new Uniform Guidance
OMB Memorandum 01-06, Clarification of
OMB A-21 Treatment of Voluntary
Uncommitted Cost Sharing and Tuition Costs
continues to apply.
Office of Management and Budget (OMB) Cont’d
• OMB expects that “most federally-funded
research programs should have some level of
committed faculty (or senior researchers)
effort, paid or unpaid by the federal
government.”
– This is considered voluntary committed cost
sharing
Cost Sharing – Important Notes
 Funds from a sponsored award may be used as cost
share against another sponsored award only when
specifically permitted by both sponsors.
 Federal funds may not be used for cost share on
other federal awards.
Cost Sharing – Important Notes (Cont’d)
 Any cost sharing (voluntary or mandatory) contained
in the proposal and/or award budget is considered
to be committed for purposes of documentation and
reporting.
 Both mandatory and voluntary commitments are
binding obligations and must be documented for cost
accounting purposes and verifiable through
auditable records.
Proposal Preparation
Proposal Preparation
• Cost sharing can be reflected in a proposal budget and/or
within the narrative section.
• Required: mandated by sponsor
If not required, do not offer it
• Cost Sharing Commitment vs. Administrative Impact
Cost sharing campus resources requires commitment to
provide those resources
Consider cost effectiveness
Proposal Preparation (Cont’d)
• Over-Committed Effort
Could interfere with a faculty member’s obligation to the
institution.
• Equipment Time and Use
Verify no interference (don’t double book)
• Subrecipient Cost Sharing
If a subrecipient voluntarily offers cost sharing in a
proposal it becomes a commitment under the terms of the
award and represents a binding obligation of the
institution and the subrecipient.
Proposal Preparation (Cont’d)
If cost sharing is required, determine:
– If costs are allowable, allocable and reasonable
– The value of the cost sharing
• Valuation: Not to exceed fair market values.
• Documentation: Basis for determining the value.
– That all cost sharing commitments can be met
Proposal Preparation (Cont’d)
 Responsibilities:
• Project Director or Principal Investigator
Determine costs required to successfully complete a
project.
• Appropriate Campus Stakeholder
Campus review and approval for committing cost
sharing in proposals (e.g., Dean, Dept. Chair, etc.)
• Operations Manager or Designee:
Review and endorse* applications on behalf
of the
RF.
* Endorsement of a proposal that includes cost sharing
is a commitment to a binding fiscal obligation.
Documenting and Reporting
Cost Share Expenditures
Cost Share Documentation – What and Why
• Comply with OMB Uniform Guidance 2 CFR Part 200
• Comply with sponsor requirements
• Report cost sharing amounts to sponsors (financial
reporting)
• Provide the total cost of conducting sponsored programs
to campuses
The specific type of documentation required is based on the
terms and conditions of the sponsored award.
Capturing Cost Share in Oracle
• A cost share award with a cost share budget is
established for the committed amount of cost
sharing.
• Once a required cost share award is
established, it is the responsibility of each
campus to input the associated expenditures
into the Oracle Business System.
Capturing Cost Share in Oracle (Cont’d)
• Cost Shared SUNY Salaries
Establish a labor schedule in the Labor
Distribution (LD) module in the Oracle
System
• Other Than Personal Service (OTPS)
Entered through pre-approved batches
“usage charges”.
as
Capturing Cost Share in Oracle (Cont’d)
• For additional information on creating cost share
awards and entering cost share expenditures refer
to:
COST SHARING: A GUIDE FOR ADMINISTRATORS
• Cost share expenditures are entered into the cost
share award in a timely manner during the life of the
sponsored award.
Monitoring Cost Sharing
How to Monitor Cost Sharing
•
•
•
•
Frequency: No less than quarterly (depending on sponsor)
Run one of the following reports:
– Oracle Report - RF Cost Share Monitoring Report (Award Missing Cost Share
Companion
– Report Center Report – 650REPORTING GABA_Cost Share Monitoring Report –
Award Missing Cost Share Companion
– Oracle Report - RF Cost Share/Match Commitment Monitoring Report
– Report Center Report - 650REPORTING: GABA_Cost Share/Match Commitment
Monitoring Report
Review the reports to ensure cost share awards have been created and expenditures
are being charged to the cost share award to meet the cost share commitment.
For additional information on monitoring refer to
COST SHARING: A GUIDE FOR ADMINISTRATORS
Monitoring Report
Questions
 Contact your campus Sponsored Programs Office
 Regina Buschmann
(518) 434-7141
regina.buschmann@rfsuny.org
 Karen Kilmer
(518) 434-7131
karen.kilmer@rfsuny.org