Cost Sharing

Cost Sharing:

• Must be verifiable from records
• Provided for in approved budget
• Only used for one award
• Conforms to Federal rules & regulations
• Un-recovered f&A costs may be included
• One Federal award cannot be used as cost sharing on another Federal award

   Mandatory Cost Sharing - University contributions to the sponsored project that are required as a condition of the award (normally, but not always, Federal) and which were agreed to between the University and the sponsor prior to the awarding of the grant or contract. This is printed on the FEC and includes the proposed amount agreed upon when the grant or contract was executed.

- represents contributions to a sponsored project or program required by the sponsor as a condition of award.  Mandatory cost sharing:

• may be a fixed percent or specific level of participation negotiated between the institution and the sponsor.
• must be included in the proposal and be provided by someone other than the sponsor.
• is a binding commitment and must be accounted for 
• may be reportable to the sponsor

     
Committed Cost Sharing- University contributions to the sponsored project not required as a condition of the award but included in the grant/contract proposal budget or budget justification with no corresponding funding requested or awarded. This budget number is printed on the FEC and includes the percent offered in the proposal.

    Aggregate Cost Sharing - University contributions required by the National Science Foundation (NSFi) to fulfill the requirement that the University provide one percent (1%) contribution (cost sharing) on the total of all unsolicited NSF funding. NSF is eliminating both program specific cost sharing and the 1% statutory cost sharing requirement on unsolicited proposals. These changes will be reflected in the terms and conditions of new awards or supplements issued after June 1, 2007. Awards issued before June 1st will continue to carry the 1% requirement or may have program specific cost sharing requirements that must be met.

    Salary Cap Cost Sharing - University contribution required by the National Institutes of Health (NIHi), the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Agency for Healthcare Research and Quality (AHRQ) for faculty with salaries in excess of the salary cap applicable to the particular federal fiscal year. For effort reporting, the FEC will reflect the cap in effect during the period of expenditure.

    K Award Cost Sharing - NIH Career Development Awards, or K Awards, are intended to provide support and protected time for new faculty to develop research skills. Because the effort requirements are high and salary recovery is limited, cost share may be necessary to complete the 75% effort requirement.

    Voluntary Uncommitted Cost Sharing - Effort that was not required by the sponsor nor committed on the budget page or budget justification of the proposal (i.e. it is not mandatory or committed cost sharing). Include this type of effort with other non-grant activities on the FEC.

Voluntary Cost Sharing represents contributions to a sponsored project or program not required by the sponsor as a condition award.  Voluntary cost sharing is classified as either:

• Committed: quantified contributions reflected in the proposal.  These are binding commitments and must be accounted for.  They may be reportable to the sponsor.
• Uncommitted: contributions not quantified or reflected in the proposal. These are not binding commitments and do not require documentation or reporting. 

 Taken from: http://www.ncsu.edu/sparcs/budgeting/cost_sharing.php