Cost Sharing
Cost sharing (also called Match) is the portion of the project's costs that is not paid by the sponsor.
This section - together with the University's Cost Sharing on Sponsored Projects (PDF) policy - provides guidance to support compliance with federal costing requirements, including 2 CFR Section 200.306 - Cost sharing and matching. These standards apply to both federal and non-federal sponsored programs.
Approvals
When to Seek Approval
If there is any uncertainty, cost share should be discussed with OSP before formal approvals are requested. Both mandatory and voluntary committed cost sharing require approval in eProposal from:
- Department hair/chief
- Dean
- Office of Sponsored Projects (OSP)
- Vice President for Research (VPR)
General Expectations
- Cost share should only be included when required by the sponsor.
- Voluntary cost share (beyond what is required) is strongly discouraged.
- NSF prohibits voluntary cost sharing on all proposals.
- All University commitments must comply with the University's Cost Sharing on Sponsored Projects (PDF) policy.
Types of Cost Sharing
- Mandatory Committed - Required by the sponsor as a condition of the award
- Voluntary Committed - Not required but still offered - only allowable when permitted by policy or sponsor guidelines. (Again, discouraged by the University and disallowed for NSF.)
Match
A specific ratio of sponsor funds to institutional or third-party funds. Match may come from:
- The University
- Third-party contributions
"Match" and "cost share" are often used interchangeably.
Common Forms of Cost Sharing
Cash Cost Share
Direct University expenditures, such as:
- Salaries and benefits for effort not charged to the project
- Tuition benefits
Total cash cost share (including tuition benefits) should generally be less than the total F&A recovered on. the project.
In-Kind Contributions
Non-cash contributions, such as:
- Volunteer services
- Donated time or resources
These must be supported by verifiable documentation.
Third-Party Cost Share
Contributions made by an external entity. A 3rd Party Cost Share Commitment is required when proposed.
Cost Sharing and the Proposal
Cost share approval must be requested at least 10 business days prior to the submission deadline using the required Cost Share Approval Form and attaching it in eProposal.
Before submitting a request, the PI and department must ensure:
- The request complies with University Policy on Cost Sharing (PDF)
- The request meets federal requirements (2 CFR Section 200.306 - Cost sharing and matching)
- Adequate and authorized funding sources are identified
The assigned OSP Officer will review the request and may approve or return it for revision. After OSP approves in eProposal, the request may need to be routed to the OVPR.
Funding University Cost Sharing Commitments
Primary responsibility for cost sharing lies with the department/college. When department/college resources are insufficient, the University may provide support with approval.
Eligible Cost Sharing Resources:
- Salary Support (with chartfield)
- PI state-line salary and benefits, up to 10% across all funded projects
- Non-faculty salary and benefits paid from non-state sources
- Unrecovered F&A when sponsor allows
- Faculty Start-Ip Funds (with chartfield)
- Equipment used exclusively - or prorated - for the project
- Other non-federal sponsored funds when both sponsors allow
- University-paid tuition not charged to a grant
- Third-party cash or in-kind contributions
- Recharge center credits or discounts
- Industry donations or discounts
Budgeting for Tuition Benefit and Student Health Insurance
- Estimate tuition using the official Detailed Tuition and Fee Schedule: http://fbs.admin.utah.edu/income/tuition/college-of-engineering/
- Budget 9 credits each fall and spring, and up to 3 credits in summer
- For NIH, budget 60% of tuition cost
- Adjust tuition for effort levels below 20hrs/week (graduate students)
- Budget student health insurance using rates listed by the Graduate School
Cost Share Distribution (After Award)
All cost share requests are evaluated case-by-case. Once the award is issued, OSP will apply the cost share distribution as follows:
Mandatory Cost Share
- Institutional Contribution First
All eligible institutional resources are applied first -
Remaining Cost Share is University Cash
Any remaining amount becomes the University's Institutional Cash Contribution.- These contributions may affect departmental F&A distribution.
- Use of Existing Resources Encouraged
Maximizing allowable institutional resources reduces University cash burden. - F&A Threshold
If anticipated F&A is less than 5% of the Institutional Cash Contribution, the department/college contributes to the difference.
CALCULATION EXAMPLE 1 - Institutional Cash Contribution Exceeds Anticipated F&A:
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REQUIRED MINIMUM COST SHARE PERCENTAGE |
30% |
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Direct Costs |
$820,000 |
$100,000,000
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F&A (52.5%) |
$180,000 |
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REQUIRED UNIVERSITY COST SHARE |
$300,000 |
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COST SHARE PROVIDED by 3rd PARTY |
$0 |
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TOTAL PROJECT COST |
$1,300,000 |
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Allowable Resources (credit) |
$0 |
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Remaining Cost Share Commitment |
$300,000 |
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FINANCIAL SUMMARY AND OBLIGATIONS OF UNIT |
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Box 1. |
Sponsor F&A |
$180,000 |
100% |
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Box 2. |
Cash Cost Share Commitment |
$197,721 ($300,000 - $103, 279 F&A credit) |
109% |
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Box 3. |
Box 1. (1) Box 2 (=) Net F&A |
-$16,721 |
-9% |
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Amount to be paid by Unit |
$25,721 |
14% |
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CALCULATION EXAMPLE 2 - Institutional Cash Contribution Does Not Exceed Anticipated F&A:
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REQUIRED MINIMUM COST SHARE PERCENTAGE |
20% |
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Direct Costs |
$700,000 |
$100,000,000
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F&A (52.5%) |
$300,000 |
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REQUIRED UNIVERSITY COST SHARE |
$200,000 |
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COST SHARE PROVIDED by 3rd PARTY |
$50,000 |
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TOTAL PROJECT COST |
$1,200,000 |
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Allowable Resources (credit) |
$33,550 |
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Remaining Cost Share Commitment |
$116,450 |
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FINANCIAL SUMMARY AND OBLIGATIONS OF UNIT |
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Box 1. |
Sponsor F&A |
$300,000 |
100% |
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Box 2. |
Cash Cost Share Commitment |
$88,410 ($116,450 - $28,040 F&A credit) |
29% |
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Box 3. |
Box 1. (1) Box 2 (=) Net F&A |
$211,590 |
71% |
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Amount to be paid by Unit |
$0 |
0% |
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Voluntary Cost Share
- Under 2 CFR 200.306, voluntary committed cost sharing cannot be considered during merit review except when required by the program.
- NSF prohibits voluntary cost sharing on all proposals.
- As of October 5, 2020, and per the Revised Research Terms and Conditions, NSF requires a post-award disclosure if the University discovers that a PI or co-PI on an active NSF award failed to disclose current support or in-kind contribution information as part of the proposal submission process. The AOR must submit the information outlined in Post-award Disclosure of Current Support and In-Kind Contribution Information, Article 38 within 30 calendar days of the identification of the undisclosed current support or in-kind contribution.