Cost Sharing (excel)
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.
To be considered acceptable as Federal cost sharing or matching costs, contributions to a project:
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 Illinois State 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 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.
If the sponsor requires a lower rate or waiver of all indirect costs (F & A), the difference between Illinois State’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.