Cost Sharing

Cost sharing is the portion of project expenses related to a sponsored agreement that is contributed by parties other than the sponsor and not directly charged to the sponsored project accounts.

Cost sharing may be required by the sponsor as a condition of receiving an award (mandatory cost sharing) or offered by the Program Director or Principal Investigator by including it in the sponsored proposal document (voluntary committed cost sharing).

The primary department with which a sponsored program is officially affiliated, is ultimately responsible for meeting cost sharing commitments. The Program Director/Principal Investigator and their Department/Section are responsible for evaluating the workload and budget implications of proposed cost-sharing (either mandatory or voluntary committed) and to ensure that the institution’s cost-sharing commitment is met. If an application to the sponsor includes any cost sharing, then the Cost Share Approval Request  must specify the funding source by account number that will cover the cost shared expenses.  Federal monies can not be used as a cost share funding source.  The approval of all reviewers on the Cost Share Approval Request constitutes their commitment to provide funding immediately upon award.

All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria.

• Are verifiable from the recipient's records.
• Are not included as contributions for any other federally-assisted project or program.
• Are necessary and reasonable for proper and efficient accomplishment of project or program objectives.
• Are allowable under the applicable cost principles.
• Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching.
• Are provided for in the approved budget when required by the Federal awarding agency.

 Documentation of Cost Shares

Type of cost share contribution	Valuation	Acceptable documentation
Volunteer services	Rates for volunteer services must be consistent with those paid for similar work.	Signed time sheet showing hours worked, and A rate calculation of how time should be valued
Donated employee time (hourly)	Employee’s regular rate of pay	Kronos time sheet showing the hours worked, and A rate calculation of how the time should be valued (ex pay stub)
Donated employee time (salaried)	Employee’s regular rate of pay	Banner/Budget statement showing funds paid during period in question, and Effort certification
Materials/supplies	Fair market value of the supplies at the time of donation	Valuation of the supplies from catalog or internet prices, bills/invoices, or quotes for same supplies
Buildings	Fair market or rental value at the time of the donation as established by an independent appraisal	Independent appraisal, or Comparable market survey prices
Equipment	Fair market or rental value at the time of the donation as established by an independent appraisal	Independent appraisal, or Established market or government rates
Land	Fair market or rental value at the time of the donation as established by an independent appraisal	Independent appraisal, or Established market or government rates
Third party support	Actual cost incurred	Letter from donor stating what was donated, or copy of agreement or contract, and copy of invoice paid by the other donor
Third party donation of cash	Cash value	Letter from donor documenting the amount of cash donated and the name of project supported, and A financial document showing the date and amount received by the grantee

Pre-Award Procedures

1. The PI identifies the cost-sharing requirement in the request for proposal.

2. The PI, in consultation with their chair and/or dean, determines how the cost-sharing requirement will be met and documented.

3. The PI downloads and completes the Cost Share Approval Request, including getting the requisite signatures.

4. The PI submits the completed and signed Cost Share Approval Request to OSRP 30 days prior to the grant submission deadline, as part of the Pre-proposal planning package.