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COST SHARE. Neta Fernandez Director, Grants and Contracts. Cost Share. What is it? What qualifies as cost share? When do we document? Does it need a CAS template? Does CAS apply?. Definition. Cost sharing or matching means that portion of a project or program costs
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COST SHARE Neta Fernandez Director, Grants and Contracts
Cost Share • What is it? • What qualifies as cost share? • When do we document? • Does it need a CAS template? • Does CAS apply?
Definition Cost sharing or matching means that portion of a project or program costs not borne by the sponsoring agency
Cost Share • Usually associated with federal grants or • cooperative agreements - NOT contracts • Grants/cooperative agreements represent • financial assistance • Reasonable to expect recipient to • participate in costs of project
Criteria • In order to qualify as cost sharing, costs: • must be directly identifiable with project • must represent costs incurred during • period of performance • must be allowable under A-21 and guide- • lines of funding agency
Types Of Cost Share • Mandatory - required by statute or • program as a condition of award • Voluntary - offered by the grantee • when not specifically required by • sponsor
Cost Share In Proposal • If cost share is shown in proposal: • IT IS A COMMITMENT OF THE AWARD • It is tracked
Mandatory/Voluntary • CAS applies • requires a CAS template • requires justifications • is tracked
What Qualifies as Cost Share • salaries (usually of faculty members) • associated fringe benefits • equipment • supplies • indirect costs associated with these
Requirements • Cost share must meet following • requirements: • verifiable from grantee’s financial records • not included as cost sharing contributions • on any other federally funded project
Requirements (Continued) • necessary and reasonable for project • allowable under the applicable cost • principles • may include indirect costs not reimbursed • by the sponsor, but only with prior • approval of awarding agency
Cost-Share at NMSU • Direct Cost Cost-sharing • Matching (Non-Federal Sponsor) • Indirect Cost Cost-sharing • Third Party In-Kind
Direct Cost Cost-Sharing Definition: Actual expenses paid by NMSU with institutional funds that are required to fulfill the project scope and were agreed to in the award.
Matching (Non-Federal Sponsor) Definition: Another grant/contract awarded to NMSU that is from a non- federal source that can be used as a match. Expenses are charged the normal way to the grant/contract account that is to be used as a match and then SPA will report the activity on the matching grant/contract as a source of cost-sharing to the other award.
Indirect Cost Cost-sharing Definition: Waived indirect cost may be used to meet cost-sharing if approved in advance by the awarding agency at the time of award.
Third Party In-Kind Cost-sharing Definition: In-Kind cost-sharing must be from a third party and must be in support of the scope of the project. It is a non-cash contribution by a third party. Written confirmation from the third party after the in-kind support is provided will be needed
Reporting of Cost-Share SPA will be responsible for reporting to the agency all cost-share that has been incurred or accumulated for each project which has a cost-share requirement.
Other Information about Cost-Sharing • Cost-share is audited annually by the OMB A-133 Auditors • If cost-share is committed in the award it must be reported to the agency • Direct Cost Cost-sharing requires university resources from unrestricted or gift accounts • Indirect Cost Cost-sharing reduces the Overhead recognized at NMSU - Loss of Income! • Direct Costs can be applied only once as cost sharing for all sponsored programs • Direct Cost Cost-sharing reduces the F&A RATE!!!
Total Project Costs Total Project Costs = Grant/Contract Award + Cost-share Total project costs must be allocable and benefit the project.
FAQs Question: Can funds from either a federal or non-federal source be used to cost share on another award ? ?
FAQs Answer: NO. Funds from a federal award may NOT be utilized as the source of cost sharing, except when authorized by both sponsors. Per A-110, non-federal awards may be utilized as the source of cost sharing ONLY if authorized by the non-federal sponsor. ?
FAQs Question: If a project requires the purchase of a new piece of special-purpose equipment, can part or all of its cost be offered as cost sharing ? ?
FAQs Answer: Yes, you may include in the proposal the use of University funds to pay for all or part of the cost of special-purpose equipment as a direct cost. This will be recorded in a cost share account. ?
FAQs Question: Can University facilities such as laboratory space be offered as cost sharing ? ?
FAQs Answer: No. These costs are charged to sponsors through the indirect cost rate. The proposal may contain a statement saying that the facilities “are available for the performance of the sponsored agreement at no direct cost to the project.” ?
FAQs Question: If the total amount of a proposed budget is reduced by the sponsor when the award is received, is the difference considered cost share ? ?
FAQs Answer: No, as long as the reduced amount of money also reflects a reduction in the scope of work. It may be a good idea to prepare and submit a revised budget and scope of work. ?
FAQs Question: Does CAS apply to cost shared direct costs ? ?
FAQs Answer: Yes. OMB A-110(23)(a)(4) requires that cost share be “allowable under the applicable costs principles”. This requires that direct costs and any indirect costs counted for cost sharing are allowable costs for the project and comply with A-21 which are the cost Principles with which NMSU is required to comply. CAS is part of OMB A-21. ?
FAQs Question: Does CAS apply to third party In-Kind ? ?
FAQs Answer: Since expenditures are not incurred by NMSU, the CAS standards we follow would not apply. There are many other applicable sections of OMB A-110 that should be followed with regards to third party In-kind. See OMB A-110 Section 23. ?
FAQs Question: Does cost share expense have to fall within the project period of the award ? ?
FAQs Answer: Yes, unless otherwise stated in the award agreement. This can get tricky with matching or third-party In-kind cost sharing. ?
FAQs Question: Does cost share affect our F&A rate ? ?
FAQs Answer: Yes, in the case of cost share of direct costs, our F&A rate is reduced. In the case of cost share of indirect cost share, our income generated from the F&A rate is lower. So overall the answer is YES!! ?
