Cost sharing required by an award will be indicated on the OSP Project Brief. Ordinarily how cost sharing obligations are to be met was determined at proposal submission and documented through the Internal Routing and Review form.
Because cost sharing is a condition of the award, the PI is responsible for the proper management and oversight of cost sharing expenditures to ensure that this obligation is met. Described below are best practices to meet cost sharing requirements in various situations.
- Required cost sharing will be noted on you Project Award Brief.
- Do not wait until the end of the award! Upon receipt of your award, discuss plans for incurring cost sharing expenditures with your budget manager.
- Cost sharing should be expended as sponsored funds are expended.
- The PI is responsible for regularly monitoring cost sharing expenditures using the SAMtool or report for PIs includes cost sharing expenditures.
- Most common cost sharing sources: non-sponsored fund(s) 11, 15, or 16
- Most sponsors require ‘bottom line’ obligation to be met; don’t cost share more than required unless vetted by OSP.
- Some sponsors require expenditures to follow originally awarded cost sharing budget and follow same rebudget-approval requirements with cost sharing budget as they do sponsored funds. Review the ‘sponsor regs’ prepared by OSP.
- Some cost-sharing is related to mandatory effort commitments – in these cases – PI (or key personnel) must commit EFFORT, the cost is not the driver, but documenting that the commitment has been met drives the cost.
Simplest scenario Cost sharing is required when noted on Project Award Brief
How: Add project tail to non-sponsored fund for expenditures such as: personnel effort, materials & supplies, equipment (as allowed by sponsored terms/conditions or solicitation requirements).
NOTE: If it’s not allowable to direct charge, it’s not allowable for cost sharing purposes. Reduced or waived indirect costs may be allowable for some sponsors or solicitations.
Third Party Cost sharing – When a non-SU party is required to contribute to award cost sharing (in subcontract or agreement)
How: Tracking is a manual process – outside of Peoplesoft – handled by OSP
Requires 3rd party certification that cost sharing obligations met; OSP obtains documentation and forwards to OSA so they can certify accuracy of information submitted to sponsor. From time to time, OSP may request additional source documentation to substantiate information certified.
NOTE: If 3rd party does not meet obligation – SU must fulfill outstanding requirement.
When another sponsored project is used as source of cost sharing
How: Cost sharing must be set up and expended in collaboration with OSA; handled in PS.
Work with OSA (current examples: CASE and COE)