Q: How do I know whether my grant requires cost sharing?
A: Check the sponsor program announcement for any cost sharing
requirement. In the past, many federal agencies required cost sharing for
their grant programs. In recent years, this requirement has been removed
as a general rule by most agencies. NSF requires cost sharing of 1% in
the aggregate on all NSF research projects to the University. While most
other federal agencies don't require cost sharing as a general rule on
grant programs, occasionally cost sharing is required for specific
programs.
For NSF proposals, faculty salaries, if available from non-federal sources, should be pledged for cost sharing. If none is available (where faculty are fully paid from federal sources) note and explain on the GC-1 form and proceed without a cost sharing pledge.
Q: Where can I check pledged/actual cost share figures?
A: Look at the budget driver in the Financial Accounting System to
see the pledged and actual cost sharing on your budgets. In
adminsitrative Applications open BGT, choose option 6 (Faculty Effort
Certification), then choose option 3 (Cost Share Inquiry Screen). You can
view the information in one of two ways:
- For individual faculty members:
- Place 9s in the date box.
- Insert the faculty members ID number in the "ID" field.
- Enter the budget number to view activity on one budget, or leave it blank to view all activity for this faculty member.
- To check compliance on a particular budget with multiple faculty members:
- Place 9s in the date box.
- Leave the ID section blank.
- Insert the budget number.
Q: What do the letters M, R, C, and A stand for on the cost
share inquiry screen?
A: Cost share on this screen is coded M (Mandatory), R (Committed),
C (Salary Cap), or A (Aggregate) cost sharing. Effective July 1, 2002, the
University no longer allows Voluntary Committed cost sharing.
Q: How can I tell if we have met the cost share requirements
on a particular budget?
A: At the bottom of the inquiry screen there is a column showing
the total pledged dollar amount and another showing the actual total cost
share dollars. If the actual dollars equal the pledged dollars, cost share
requirements are met. These figures include salary and benefits, as well
as non-salary-related costs and corresponding Facilities and
Administrative (indirect) costs.
Q: A faculty member in our department performed more effort
than what was proposed on one of his budgets. Does he need to declare this
as cost sharing?
A: No. This is called "voluntary uncommitted effort" (formerly
called "other voluntary cost sharing") and is captured on FEC line 7,
"All Other Activities."
Q: Can I use unrecovered indirect costs (F&A) for cost
sharing?
A: Unrecovered indirect (F&A) costs can be used for cost sharing
when prior sponsor approval has been received.
Q: How does unrecovered F&A (indirect) cost get documented in
the system?
A: Periodically, GCA reviews these budgets, makes the necessary
computations, and enters the F&A cost into the budget driver's cost share
system. This cost share requirement does not need any interaction with
the grantee department.
Q: What should I do if my faculty are cost sharing on another
department's grant?
A: Since you are not able to see the cost sharing on another
department's grant, you will need to contact either the parent department
or GCA to get a copy of the BGT screen to verify that the cost sharing was
set up correctly. Faculty effort will be reported on the FEC as always
but you will need to work with the parent department and provide backup
documentation to ensure that your department's portion of the non-FEC cost
sharing is reported.
Q: Are costs incurred prior to the start date or after the
expiration date of an award allowable as cost share?
A: No, these costs will not be allowable unless sponsor approval
is obtained.
Q: What is in-kind cost sharing?
A: Charges posted to a non-grant University budget where the
benefit is to a grant. Examples include salaries, benefits,
equipment, supplies and F&A (indirect) costs associated with these costs.
Q: What are third-party contributions?
A: This refers to an organization outside of the University that is
participating in the costs of a project. The most common instance is when
the University receives a grant with cost share requirements and
subcontracts a portion of the project to another university that is also
required to make cost share contributions.
Q: What is cost matching?
A: This is essentially the same thing as cost sharing. The term is
often used when the costs borne by the UW and by the sponsor are the same
dollar amount. This is also known as dollar for dollar cost sharing.
Q: How should third-party contributions be documented?
A: A letter signed by a representative from the organization and/or
on the organization's letterhead which includes detailed information
(i.e. name, number of hours worked, hourly rate of pay, dates). The
letter must be signed by an authorized representative of the organization
and his/her title must be included.
Q: If a sponsor lines out the effort of a specific person in
the awarded budget -- for example, a 50% FTE Research Assistant -- is that
cost sharing?
A: If the scope of work is reduced and the individual does not work
on the project, then there is NO cost sharing. However, if the individual
still works on that project as proposed, and is funded with other
University funds, then it IS cost sharing.
Q: Can University facilities, such as laboratory space, be
offered as cost sharing?
A: No, only costs paid by the department or college can be used for
cost sharing. University facility costs are charged to sponsors through
the indirect cost rate. Indstead of characterizing the use of facilities
as cost sharing, the proposal budget justification may state that the
facilities are "available for the performance of the sponsored agreement
at no direct cost to the project."
Q: We have reduced the amount paid on a NIH grant to the NIH
cap. Why do we still owe cost sharing?
A: The original percent effort was awarded by NIH as a percent of
the cap. The actual percent effort reflects the salary on the grant as a
percent of the actual salary. If the cap is $100,000 and the faculty
member has offered 10% effort, that percentage effort will be reduced if
his/her actual salary is $130,000. For instance:
| Proposed: | $10,000 / $100,000 = 10% |
| Actual: | $10,000 / $130,000 = 7.7% |
| Cost Share Owed: | 2.3% |
