Cost Share

Cost sharing is that portion of a total sponsored project’s costs that are paid from sources other than the funds provided by the sponsor. Cost sharing can either be imposed by a sponsor as a condition of the award (mandatory committed) or it can be voluntary committed if offered by the University when not a sponsor requirement.

Some agencies make a distinction between “cost sharing”, “in-kind” and “matching.” Generally, all these terms refer to the share of costs not charged to the sponsor. These terms can refer to cash contributions, contributed time, and donated services.

Cost sharing has a significant financial impact on the department providing the funds and on the University as a whole. Commitments should be held to a minimum. The University procedure is to provide cost sharing only when required by agency guidelines or delineated in specific program announcements or necessary due to the competitive nature of the proposal.

If specific effort or other commitments are specified anywhere in the proposal (including the narrative or current and pending support statement) and no associated cost is detailed in the budget, it becomes a cost sharing commitment and will need to be shown as cost share in the Electronic Proposal Clearance System (E-PCS). The corresponding fringe benefits and indirect costs on cost-shared salary will also need to be shown.

It is important to note that all transactions committed as cost share must occurr during the life of the project and may not be committed to any other project.

Federal Regulations Regarding Cost Share Dollars

• Be allocable, i.e., necessary and reasonable for proper and efficient accomplishment of sponsored research award objectives;
• Be allowable under the applicable cost principles; and

• Be verifiable from the grantee's records;
• Not be included as contributions for any other federally-assisted sponsored research award;
• Not be paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching;
• Be provided for in the approved budget when required by the Federal awarding agency;
• Not be unrecovered Facilities and Administration Costs without prior approval of the Federal awarding agency; and
• Conform to all other applicable provisions of Circular A-110.