Lunch & Learn Cost Sharing

1. Lunch & LearnCost Sharing

2. Today’s Agenda • Policy • Procedures • OMNI Child Budget Setup • FACET • Common Issues • Coming Attractions

3. What is Cost Sharing? • Project Costs not borne by the Sponsor • Also known as “Matching”

4. Policy of FSU • “The policy of the University is to make a cost sharing commitment only when required by the Sponsor or by the competitive nature of the Award, and then to cost share only to the extent necessary to meet the specific requirements of the Sponsored Project.” Exceptions to this policy must be approved by the Chair, the Dean and the Vice President of Research.

5. Policy & Procedure Guidance • OMB Circular A-110 • Sets overall Administration Guidelines • OMB Circular A-21 • Defines allowability of costs • FSU Policies and Procedures • Specific Agency/Award Requirements • NSF, NIH ,etc. have specific, additional rules • Non-Federal Awards may reference Circulars

6. Cost Sharing Definitions • Mandatory Cost Sharing • Required by Agency • Quantified (% effort and/or dollar amount) • Documentation required; usually reported to Agency • Voluntary Committed Cost Sharing • FSU voluntarily shares • Quantified (% effort and/or dollar amount) • Documentation required; may not be required to report • Voluntary Uncommitted Cost Sharing • FSU voluntarily shares • Not Quantified (% effort and/or dollar amount) • Not Required to Document or Report • Project Enhancement • Not Quantified, but available—not considered cost sharing

7. Mandatory and Voluntary Committed Cost Sharing • Must account for and report • Electronic and Paper Record Keeping Requirements • Award reduced proportionately for unmet Cost Share Amount • Potential Refund to Agency • Reliance on Third Parties • Limited Control and Oversight • Cash vs. In-Kind tracking • Fair Market Value Issues • Allowability Issues

8. Policy of FSU • “The policy of the University is to make a cost sharing commitment only when required by the Sponsor or by the competitive nature of the Award, and then to cost share only to the extent necessary to meet the specific requirements of the Sponsored Project.” Exceptions to this policy must be approved by the Chair, the Dean and the Vice President of Research.

9. Cost Sharing Procedures • Sources • Personnel costs (FACET) • Other direct costs (travel, tuition, consultants, equipment, etc.) • F&A on cost share direct expenses • Unrecovered Indirect Costs, with Agency OK • Institutional Rate = 47% • Other sponsored agreements when appropriate/allowable • Federal awards generally not allowed to be used • 3rd party contributions

10. Cost Sharing Procedures • Cost Share Commitment form • Need for Advances, if applicable • Proposal • Prepared and submit to SRS as part of package • Award • SRS confirms cost sharing sources at the same time negotiating/executing the sponsor award • The sponsored project budget will not be activated until all cost sharing information has been received • SRAS sets up sponsored and cost share child budgets at same time

11. Cost Sharing Expenditures • Allowable according to OMB Circular A-21 • Directly related to the project objectives • Not included on any other federally-assisted awards • Not paid by the Federal government unless authorized by statute • Verifiable from recipient’s records • Need to spend at the same rate as spending on the sponsored project, unless indicated otherwise

12. Parent Direct Child 700001 Indirect Child 780300 Cost Share Child 700001 Cost Sharing in OMNI • “Child” Budget Checking The “Child” must have sufficient available balance for a transaction to “pass” budget checking

13. Cost Sharing in OMNI • Project examples with cost sharing child Parent = Sum of Children

14. Cost Sharing in OMNI • Project examples with cost sharing children

15. Cost Sharing Budget Setup Matrix

16. Cost Sharing and FACET • Child Budget Set-up • Automatically populates in FACET • Certification Page • Enter total effort on Project • A-21 View –Automatically allocates Effort • Direct Charged Salaries • Committed Cost Sharing • Over the Cap (OTC) • Uncommitted Cost Sharing

17. Percent Effort Commitment Only • Proposal contains key personnel (PI/Co-Pi, if no Agency definition) with effort commitments not supported by Agency funding • No dollar amount proposed as cost sharing, i.e. % effort only • Cost Share Budget not required • Exception when related to instruction • Commitment must be met • FACET is our documentation

18. Agency Salary Cap • NIH, for example • Must be funded from non-Sponsored Funds • OTC portion cannot be used to meet Cost Sharing requirement • Fund 556 created to account for OTC portion of the salary funding

19. Cost Sharing Common Issues • No cost share commitment form with Proposal • No cost share commitment form with no-cost extensions, if applicable • Need to set up cost share budget in Advance if cost share will be required upon award • Department not “spending” cost share budget • Spend at same rate as sponsored project • Costs need to be “posted” to the cost share budget • Multi year projects • Need cash transfers when existing project is amended or new sponsored project is setup • Unallowable Costs/Salary Cap Issues • Over Spending Cost Share Budget

20. Websites • Cost Sharing Policy • http://www.research.fsu.edu/contractsgrants/costsharing.html • Cost Sharing Procedures • http://www.research.fsu.edu/contractsgrants/documents/csprocedures.pdf • Cost Sharing Forms • http://www.research.fsu.edu/contractsgrants/documents/cs_commit_form.pdf • http://www.research.fsu.edu/contractsgrants/forms.html(Sponsored Research Forms) • http://controller.vpfa.fsu.edu/Controller-Forms(Controller Forms) • OMB Circulars • http://www.research.fsu.edu/contractsgrants/documents/create/TabB.pdf(A-110) • http://www.research.fsu.edu/contractsgrants/documents/create/TabE.pdf(A-21)

21. Other News • Lunch & Learn • November 30 – Electronic Submission Systems • CReATE • Format to be reviewed prior to next session