Research OSPA:Cost Sharing Process

From Office of Research Wiki
Jump to navigation Jump to search

Effective Date

September 1, 2013

Statement of theIssue

Process required when including Cost Share in a proposal submission.

Applicable Policy/Regulation

The University of Texas System Policy UTS INT158 entitled “Cost Sharing Policy” and UTS 163 entitled “Guidance on Effort Reporting and Certification Policies” provides the requirements, guidelines, and procedures for monitoring, tracking, and reporting cost sharing to sponsoring agencies for all sponsored programs, federal, State, and private. This includes the understanding of cost sharing commitments and determining when cost sharing is appropriate and allowable.Additionally, Uniform Guidance (UG) 2 CFR 200, Section 200.306 states:A. Under federal research proposals, voluntary committed cost sharing is not expected. It cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is both in accordance with federal awarding agency regulations and specified in a notice of funding opportunity. Criteria for considering voluntary committed cost sharing and any other program policy factors that may be used to determine who may receive a Federal award must be explicitly described in the notice of funding opportunity. See also UG 200.414 Indirect (F&A) costs, 200.203 Notices of funding opportunities, and Appendix I to Part 200—Full Text of Notice of Funding Opportunity.B. For all federal awards, any shared costs or matching funds and all contributions, including cash and third party in-kind contributions, must be accepted as part of the non-federal entity's cost sharing or matching when such contributions meet all of the following criteria:

  • Are verifiable from the non-federal entity's records;
  • Are not included as contributions for any other federal award;
  • Are necessary and reasonable for accomplishment of project or program objectives;
  • Are allowable under Subpart E—Cost Principles of the UG;
  • Are not paid by the federal government under another federal award, except where the federal statute authorizing a program specifically provides that federal funds made available for such program can be applied to matching or cost sharing requirements of other federal programs;
  • Are provided for in the approved budget when required by the Federal awarding agency.

C. Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of the federal awarding agency.

Process

Proposals with cost share will not be submitted unless the cost share section of the cert form has been signed by the respective Dean (see red circle below).


If a PI does not request salaried effort from the project, they will need to include their effort as cost share on the cert form. The only exceptions to this are equipment and travel grants, which do not have salary.In PeopleSoft, cost share commitments are notated in two sections: under Additional Information in the Proposals module and in the Budget Detail module. See the detailed manual located at
G:\Sponsored Projects\Processes\PeopleSoft Processes\PS-Entering Cost Share.
a) All cost share needs to be noted on the Proposals tab, under "Additional Information". Select CST for Cost Sharing. In the "Comments" box, enter the type of cost share (Mandatory, Voluntary Committed, Voluntary Uncommitted, Salary Cap, Effort, etc), the method (cash, in-kind, third party), the dollar amount, and who has approved the cost share (should match the signature on the cert form).
b) On the Budget Detail screen, the cost share will need to be entered using the PeopleSoft Manual referenced above.For additional information, refer to the OSP guidelines for <a class="wiki external" target="_blank" data-cke-saved-href="https://research.utdallas.edu/osp/proposal-preparation/preparing-the-budget" href="https://research.utdallas.edu/osp/proposal-preparation/preparing-the-budget" rel="external">preparing the budget</a> or the OPM process for <a class="wiki external" target="_blank" data-cke-saved-href="https://research.utdallas.edu/opm/guidelines/cost-sharing" href="https://research.utdallas.edu/opm/guidelines/cost-sharing" rel="external">cost-sharing</a> and <a class="wiki external" target="_blank" data-cke-saved-href="https://research.utdallas.edu/wiki/guidelines/opm/funding_cost_share" href="https://research.utdallas.edu/wiki/guidelines/opm/funding_cost_share" rel="external">funding cost share</a>.

Definitions

  1. Cost sharing
    1. The portion of the sponsored project cost not borne by the sponsor.
    2. Occurs when a sponsor requires or the institution commits funds beyond the awarded amount by the sponsor.
    3. UT System Administration strongly discourages cost sharing arrangements for all sponsored programs, as these arrangements involve unique accounting procedures and require funding resources from UT System Administration. Cost sharing arrangements also necessitate increased monitoring to ensure compliance.
    4. The concept of matching is synonymous with Cost Sharing.
  2. Mandatory Committed Cost Sharing is required by the sponsor as a condition of obtaining an award. It is a binding commitment that must be provided and tracked in a consistent manner by UTD.
  3. Voluntary Committed Cost Sharing represents committed resources that were not required by the sponsor and that is in excess of committed resources paid by the sponsor. It is a binding commitment that must be provided and tracked in a consistent manner by UTD.
  4. Salary Cap Cost Sharing results when an individual's institutional base salary exceeds a sponsor's salary cap. The prorated excess is a form of mandatory Cost Sharing that must be accounted for. NIH and CPRIT have salary caps. Salary cap cost sharing will only need to be entered in PS and noted on the cert form if the effort is during the academic year.
  5. Voluntary Uncommitted Cost Sharing represents resources that may benefit a project, but were not committed in the award agreement.
  6. Federal Demonstration Partnership (FDP)
    1. Cooperative effort among federal research agencies and recipients of federal funds aimed at reducing the administrative burden associated with research grants and contracts.
    2. Implemented streamlined terms and conditions for research grants.
  7. Effort: time spent by employees on a sponsored project.
  8. Documentation: original invoice, credit card receipt, and any other documentation that supports the transaction.
  9. Uniform Guidance - In effect December 26, 2014 and published by the federal Office of Management and Budget (OMB), this guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A-110, and A-122; Circulars A-89, A-102, and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. This guidance provides a government wide framework for grants management which will be complemented by additional efforts to strengthen program outcomes through innovative and effective use of grant-making models, performance metrics, and evaluation. <a class="wiki external" target="_blank" data-cke-saved-href="http://www.whitehouse.gov/omb/grants_docs" href="http://www.whitehouse.gov/omb/grants_docs" rel="external">http://www.whitehouse.gov/omb/grants_docs</a>