Cost-Sharing / Matching
Cost-sharing can be either imposed by a sponsor
as a condition of its research or training support, or it can be
volunteered on the part of the University to demonstrate its commitment
to a project. Cost-sharing is the difference between effort expended
on a project and the effort that is paid for through sponsored funds.
The requirements for cost sharing may be in the form of a specific
ratio or stated percentage. Once a proposal containing such a commitment
is accepted by a sponsor, it is considered binding upon the University
and any changes must have the written approval of the sponsor. The
University must document cost sharing and is subject to audit on
any quantified cost sharing. Such documentation is the responsibility
of the principal investigator. Cost-sharing must be authorized by
the originating department. All requests for matching funds must
be approved in advance by the principal investigator’s department
chair and dean. Cost-share obligations must be met between the effective
start date and end date of the agreement. Cost-sharing more than
is required by the agreement is unnecessary and costly to the University;
therefore only agency required cost share should be included in
the budget.
Criteria for Allowability
To be considered acceptable as Federal cost sharing or matching costs,
contributions to a project:
- Must be verifiable from the University records. Customary documentation
is required, i.e. cost sharing derived from contributed effort
(salary and wages) must be documented by means of the Time and
Effort Reporting system.
- Must not be included or otherwise counted as contributions
toward any other Federally-assisted program.
- Must be necessary and reasonable for proper and efficient accomplishment
of project objectives.
- Must be types of charges allowable under applicable cost principles.
- Must not be charged to the Federal government directly or indirectly
under any other grant or contract.
Contributed effort (payroll and benefits)- It is
advantageous to select items for cost share that are relatively easy
to document. One such cost is effort of employees who are supported
by nonsponsored funds and will be contributing effort to the project.
The appropriate chair, dean, or supervisor must authorize commitment
of ISU employees’ time to a project. Contributed effort is documented
with Time and Effort Reporting. In addition to the individual’s
time, the University may usually also claim the fringe benefits that
it would have earned had that time and effort been charged as a direct
cost to the grant.
Other direct costs- Other types of cost share,
such as matching funds for equipment or supplies, should be discussed
with your chair and/or dean. Minimal systems exist to document nonpersonnel
cost share and thus some costs can be burdensome to document (e.g.
telephone and printing charges). Contributions towards these other
direct costs of a sponsored program are verified through Cost-Sharing
Confirmation Reports.
Indirect costs – If the sponsor requires
a lower rate or waiver of all indirect costs (F & A), the difference
between ISU’s negotiated rate and the sponsor’s allowable
rate should be shown as cost share unless the sponsor does not allow
it. Notation of the indirect cost limitation must be provided on the
Proposal Submission Form, and documentation of the limitation must
be appended to the form.
|
