Cost Share

1. Cost Share Business and Fiscal Officers Meeting - 4/20/10 Presented by: Glen Jones, Director Post-Award Research and Sponsored Programs

2. Cost Share Issues • Cost Share Defined • Allowable and Unallowable Cost Share • Identification of Sources • Regulations • Audits and repercussions • Documenting Cost Share

3. Definition • Cost sharing or matching is that portion of the project or program costs not borne by the sponsor.

4. Types of Cost Sharing • Mandatory, required, condition of award • VoluntaryCommitted, offered, excess of mandatory, not a condition to be considered for the award • Voluntary Uncommitted, effort or expenditures that are in excess of committed and budgeted Special Note: Commitments in proposals become requirements upon award.

5. Cash vs. In-kind • Cost share from University sources are considered cash • Value of non-cash contributions provided by a third party are considered in-kind

6. Examples of Cost Sharing • Employee time, including fringe benefits • Equipment • Volunteer time or other contributed items • Unrecovered F&A, if approved by sponsor • Subrecipient cost-sharing • Directly related supplies and services

7. Sources of Cost Sharing • University funds • Unrecovered Facilities and Administrative Costs • Third party contributions • Other Sponsored Projects

8. When to Include Cost Sharing • Mandated by Sponsor • Contribution is necessary to ensure success of competitive proposal

9. Unallowable Cost Share • Items normally treated as Indirect • Specifically Unallowable Costs • Cost share used on other projects • Matching Federal with Federal

10. Cost Share or F&A Items generally considered indirect cannot be cost share. These include: • Department Administration • Space • Utilities • Equipment (in some cases) • Library resources

11. Timing • Cost share must be expenditures incurred or services rendered during the period of award • Some agencies expect / require expenditures to occur at same pace as federal dollars

12. Cost Sharing Criteria • Verifiable from Official University Records • Not cost sharing for other sponsored programs • Necessary and reasonable for accomplishing project • Allowable cost, as defined in OMB A-21 • Incurred during effective award dates

13. Repercussions of Unmet Cost Share • RSP will identify amount and proportion unmet • RSP will ask PI to identify programmatic effect • RSP will notify agency immediately • Agency may require repayment of a proportionate share of grant funds • Note: Unsatisfactory documentation may be treated as unmet cost share

14. Where to find the regulations • OMB A-110, Subpart c.23 • NSF Grants Policy Manual, Section 330 and General Conditions, Section 21 • Office of Education (EDGAR), Section 74.23 • Other agency guidelines, including RFPs

15. Audits of Cost Share • OMB A-133 Audits • Program Audits • Project Financial Audits • Agency Audits • Inspector General Audits

16. Documentation • Mandatory & Committed Cost Share must be documented • Must be readily identifiable in the official records of the Institution • Method of documentation is determined by type of award and type of cost share • Inadequate documentation may result in disallowance

17. Documenting Cost Share - Salaries • Effort Report – Salary Employees • Prospective – Add Activity code to PAF, EPAF, GRA Agreement • Retrospective – Add Activity code to salary redistribution • Time Card – Hourly Employees • Prospective – Add Activity code to PAF, Student Employment form • Retrospective – Add Activity code to salary redistribution

18. Documenting Cost Share – Non-Salary • Any Form where FOAP(AL) is a required field by adding the Activity Code. These forms include but are not limited to: • DPO • Requisition • GRA Agreement – Tuition Portion • Travel Authorization • Petty Cash Voucher • Journal Vouchers – Transfer cost to cost share

19. Cost Share Orgn – When to Use • Use when cost share funding is coming from cost share commitments from unrestricted sources outside of department where the grant resides. • Notify RSP when Cost Share Orgn is set up in Banner, so RSP can add to FWAGRNT. • Example - Commitments from Provost, VP Research and Dean’s Office. • Activity code should still be used on all transactions processed against cost share orgn. • Funded via budget transfers from unrestricted source commitments.

20. Cost Share from Unrestricted Source • Use Activity code on all transactions • Change program code to match grant program code • Example: • Cost Share of equipment for research grant 661111 • Index – Fund – Orgn – Account – Program - Activity • 211112-190000-211112-794500-20001-661111

21. Cost Share Using Restricted Funds • Notify RSP as to what grant or other restricted funds will be used as cost share for a grant • RSP will add fund to Banner in FWAGRNT • Add activity code to transactions on match fund if restricted source is used to cost share multiple grants • Do not change program code of restricted source used as match • Example: • Cost Share of equipment for research grant 661111 • Index – Fund – Orgn – Account – Program - Activity • 660000-660000-211112-794500-10002-661111

22. Documenting Third-Party Contributions • Letter from Third Party or record in WSU Foundation for Third Party Contributions • Letter or Foundation record should document the following: • Valuation of donated services • Volunteer services • Employees of other organizations • Valuation of third-party donated supplies and loaned equipment or service • Valuation of third-party donated equipment, buildings, or land

23. Questions?