Cost Sharing on Externally Sponsored Programs

Cost Sharing, sometimes known as matching, occurs when a grant sponsor requires that the University allocate a percentage of an employee’s time to a grant and not receive compensation from the grant. The employee has effort on a grant but their compensation is provided by the University and not charged to the grant.

If the Sponsor does not require cost sharing/matching in their Request for Proposal we are not permitted to add cost sharing/matching to our proposal. Many Request for Proposals that are issued state that if unrequired Cost Share/Match is added to our proposal, the proposal will be returned as non- compliant and not reviewed.

Here is the University Policy on Cost Share as taken from the Policy and Procedures Library:

PROCEDURES

When award notification is received, the Project Director (PD), through their appropriate Department/Unit, provides the Controller’s Office with a Journal Voucher Form to transfer funds from a budgeted general fund source or otherwise unrestricted source to the new cost share speedtype. The transfer will charge (debit) the non-grant, general fund source speedtype using account 573000 and will credit the cost share speedtype using account 473000.

This transfer will move available cash from the approved funding source to the new cost share speedtype.

It is important to note that a 573000 expense transfer will treat the amount transferred as an expense of the program and will reduce the budget balance available in that general fund program’s 500000 account pool. If the cost share involves salary and fringe benefits from the general fund program, a budget revision must be processed to move the appropriate budget amounts from salary (511000 pool) and fringe benefits (512000 pool) to the S&E; (500000 pool) of that program. To accomplish this,

the department must process a Budget Revision Request (BRR) through Budget and Financial Planning.

Once the cost share speedtype is established, the PD must ensure that appropriate expenses are charged to that cost share speedtype in accordance with University policy and applicable federal/state/sponsor regulations.”

STEPS to take in processing a Cost Share:

If your department is awarded a grant that requires cost share you will be notified by the CEHD Research Office of the amount. In almost all cases the cost share/match is for salaries and benefits.

Here are your steps to take:

  1. After completing the attached Cost Share Spreadsheet, send it to CEHD Lead Financial Officer (currently Barbara Bishop), and request that a Budget Revision Request be made for the total amount of salary and benefits on the spreadsheet. Note that the Grant Speed Type will begin with a CS.
  2. Watch for the Budget Revision Request (BRR) to post using the PI-01 Budget Adjustments_Revisions Program report currently located in the on University Reports Financials Individual Detail folder. (it is expected that this report will migrate to the Power BI system in the future)
  3. When the BRR has posted we must then move the cash to fund the cost share. That is done via an Journal Voucher (JV).
  4. When completing the JV see the example attached. Enter the Department Speed Type that you entered on the Budget Revision Request form under the CHARGE section of the JV. (The Department Speed Types on the JVand BRR form must match)
  5. Note that the grant speed type for the CREDIT section will begin with ‘CS’ for Cost Share. Page two, the Justification for the JV, is not required when funding cost share.
  6. Submit the complete JV to the CEHD UBM Senior (currently Kenneth Allen). When submitting the JV for processing also send the Dean’s Office Unit Business Manager (currently Kenneth Allen) a copy of the Budget Revision Request spreadsheet, so he can begin to charge the Cost Share speed type for salary and benefits.
Notes:
  • you will need to reconcile the Cost Share in the same manner as you reconcile the grant speed type.
  • Cost Share will display on the first page of the CONT-3B Monthly Summary Report. The Fund Code will be 1105.
  • Cost Share speed types will always begin with ‘CS’.
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