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POLICY NO : '''6104'''<br />
Policy No.: '''6104'''<br />
EFFECTIVE DATE: '''04/26/06'''<br />  
Effective Date: '''04/26/06'''<br />  
 
Revised Date: ''''''<br />
=== Purpose ===
Reviewed Date: ''''''<br />
 
<br />
<big>'''Sponsored Project Cost Share Policy'''</big>
== Purpose ==  
To establish policy for the funding, accounting and reporting of cost share requirements on sponsored projects.
To establish policy for the funding, accounting and reporting of cost share requirements on sponsored projects.
 
== Policy ==
=== Policy ===
The University of Nebraska Medical Center (UNMC) policy does not allow for voluntary committed cost sharing without prior approval of the Vice Chancellor of Research or designee.<br />
 
<br /> 
The University of Nebraska Medical Center (UNMC) policy does not allow for voluntary committed cost sharing without prior approval of the Vice Chancellor of Research or designee.
Cost share committed on sponsored projects is to be limited to the minimum amount necessary to meet sponsors' requirements for the following reasons:        
   
*Exceeding the sponsor’s mandated level for cost sharing rarely improves the likelihood of an award.
Cost share committed on sponsored projects is to be limited to the minimum amount necessary to meet sponsors' requirements for the following reasons:      
*Identifying, tracking and reporting of cost sharing increases administrative duties.
       
*Cost sharing salary reduces the amount of salary eligible to be recovered from external sponsors.
* Exceeding the sponsor’s mandated level for cost sharing rarely improves the likelihood of an award.
*Cost share commitments negatively impact negotiation of UNMC’s F&A rate.    
*         Identifying, tracking and reporting of cost sharing increases administrative duties.
The principal investigator is responsible for maintaining records of all project related costs, including cost share through the use of a [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 cost share companion account].<br />
*         Cost sharing salary reduces the amount of salary eligible to be recovered from external sponsors.
<br />   
*         Cost share commitments negatively impact negotiation of UNMC’s F&A rate.
Per federal regulations ([http://www.whitehouse.gov/omb/circulars/a110/a110.html OMB Circular A-110], Subpart C. 23) cost sharing must be accounted for through university financial records. To identify, track and report cost share commitment on sponsored projects, UNMC uses three mechanisms:      
       
*UNMC Internal Budget:  UNMC policy requires that the amount, category (e.g., salary, equipment) and type of cost share (i.e., mandatory or voluntary committed) and its funding source (i.e., cost center) be documented on UNMC’s internal budget.
The principal investigator is responsible for maintaining records of all project related costs, including cost share through the use of a [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 cost share companion account].
*Cost Share Companion Account: UNMC policy requires that [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 cost share companion accounts] be established to document that:         
   
:*cost share commitments to the sponsored project were met
Per federal regulations ([http://www.whitehouse.gov/omb/circulars/a110/a110.html OMB Circular A-110], Subpart C. 23) cost sharing must be accounted for through university financial records. To identify, track and report cost share commitment on sponsored projects, UNMC uses three mechanisms:    
:*funds used to meet matching requirements were used only once
       
== Criteria for Determining Allowable Cost Share Expenses ==
* UNMC Internal Budget:  UNMC policy requires that the amount, category (e.g., salary, equipment) and type of cost share (i.e., mandatory or voluntary committed) and its funding source (i.e., cost center) be documented on UNMC’s internal budget.
In general, cost shared expenses must meet the same standards as expenses made using the sponsor's funds. In addition, cost-shared expenses must be:  
*         Cost Share Commitment approval procedure - Under Construction
*Determined allowable by sponsor policy and program guidelines
*        Cost Share Companion Account: UNMC policy requires that [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 cost share companion accounts] be established to document that:         
*Allowable under UNMC policy, per [[Direct Cost|UNMC Policy 6100, Direct Costs]].
*Verifiable in the UNMC’s accounting record
# cost share commitments to the sponsored project were met
* Necessary and reasonable to efficiently achieve the objectives of the program
#            funds used to meet matching requirements were used only once
*Incurred during the effective period of the award
 
=== Criteria for Determining Allowable Cost Share Expenses ===
 
In general, cost shared expenses must meet the same standards as expenses made using the sponsor's funds. In addition, cost-shared expenses must be:    
       
* Determined allowable by sponsor policy and program guidelines
*         Allowable under UNMC policy, per [[Direct Cost|UNMC Policy 6100, Direct Costs]].
*         Verifiable in the UNMC’s accounting record
*         Necessary and reasonable to efficiently achieve the objectives of the program
*         Incurred during the effective period of the award
 
See also [[Direct Cost|UNMC Policy 6100, Direct Costs]].<br />
See also [[Direct Cost|UNMC Policy 6100, Direct Costs]].<br />
<br />
<br />
Criteria for Determining Unallowable Cost Share Expenses
==Criteria for Determining Unallowable Cost Share Expenses==
   
The following are examples of expenses which are not allowable as cost sharing:
* The following are examples of expenses which are not allowable as cost sharing:
*Costs associated with use of UNMC facilities   
*         Costs associated with use of UNMC facilities   
*Cost of using any item of equipment purchased with federal funds
*         Cost of using any item of equipment purchased with federal funds
*Expenses that are not directly connected with performance of the project
*         Expenses that are not directly connected with performance of the project
*Expenses that can not be verified in the project accounting records
*         Expenses that can not be verified in the project accounting records
*Resources committed as cost share for other projects
*         Resources committed as cost share for other projects
*Expenses recovered through the Facilities and Administrative Costs (F&A) paid by the sponsor
*         Expenses recovered through the Facilities and Administrative Costs (F&A) paid by the sponsor
*UNMC IBS Salary in excess of NIH salary limitation level (NIH Salary Cap)
*         UNMC IBS Salary in excess of NIH salary limitation level (NIH Salary Cap)
<br />
 
See [[Institutional Base Salary|UNMC Policy 6102, Institutional Base Salary Policy]].     
See [[Institutional Base Salary|UNMC Policy 6102, Institutional Base Salary Policy]].     
       
<br />
* Federal funds unless approved by sponsor
*Federal funds unless approved by sponsor
<br />
Other unallowable expenses are detailed in [[Unallowable Cost Policy|UNMC Policy 6103, Unallowable Expenses]].
== Definitions ==
'''''Cost Sharing''''' (also called matching) refers to the specific portion of the project or program costs not funded by the sponsor.  Cost sharing occurs when a cost specifically benefits a sponsored project, but is not charged to the sponsor. Typically, cost sharing is a direct cost such as salary or equipment. If a sponsor limits F&A (indirect costs) eligible to be charged to a project, unrecovered F&A may be allowed as cost share if sponsor has approved. There are 3 types of cost sharing:         
*'''''Mandatory''''': Costs required by the terms of the award or by federal statute that the University must contribute toward the project as a component of the award. The two major categories include:         
:*'''''Cash''''': Actual expenditure of funds (e.g. salaries, equipment, travel)
:*'''''Non-Cash (In-kind)''''': Contributions to the project other than cash (e.g. effort of non-employee volunteers)   
*'''''Voluntary Committed''''': Cost associated with a project, identified in the proposal, yet not requested from the sponsor. Common examples include:           
:*'''''Effort''''': A percentage effort (e.g., for faculty or senior researchers) included in a proposal budget or stated in the text of the proposal for which compensation is not requested; and
;*'''''Equipment''''': The purchase of equipment for the project that was identified in the proposal; however, funds were not requested of the sponsor.
*'''''Voluntary Uncommitted''''': Cost associated with a project, not funded by the sponsor, and not identified in the proposal, or in any other communication to the sponsor as a commitment of the University. Includes:     
:*Effort of faculty or senior researchers that is beyond the effort committed and budgeted for in a sponsored agreement.       
'''''Effort''''': See also [[Effort Certification|UNMC Policy 6105, Effort Reporting]]. To comply with OMB Circular A-21, J.10, principal investigators must commit some effort on each individual sponsored programs whether federal or non-federal, whether  paid or not paid by the sponsor. Exceptions to this requirement include training grants, dissertation support, limited purpose awards (e.g., travel grants, conference support), or salary support provided by another funding source, such as career awards.
==Additional Information==
[http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html OMB Circular A-21], “Cost Principles for Higher Education”<br />


Other unallowable expenses are detailed in [[Unallowable Cost Policy|UNMC Policy 6103, Unallowable Expenses]].<br />
[http://www.whitehouse.gov/omb/circulars/a110/a110.html OMB Circular A-110], “Uniform Administrative Requirements for Grant and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations"<br />
<br />
=== Definitions ===


Cost Sharing (also called matching) refers to the specific portion of the project or program costs not funded by the sponsor.  Cost sharing occurs when a cost specifically benefits a sponsored project, but is not charged to the sponsor. Typically, cost sharing is a direct cost such as salary or equipment. If a sponsor limits F&A (indirect costs) eligible to be charged to a project, unrecovered F&A may be allowed as cost share if sponsor has approved.   There are 3 types of cost sharing:   
UNMC Procedures for [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 Companion Cost Share Accounting]<br />
       
* Mandatory: Costs required by the terms of the award or by federal statute that the University must contribute toward the project as a component of the award. The two major categories include:
       
           
# Cash:  Actual expenditure of funds (e.g. salaries, equipment, travel)
#            Non-Cash (In-kind):  Contributions to the project other than cash (e.g. effort of non-employee volunteers)
           
       
* Voluntary Committed: Cost associated with a project, identified in the proposal, yet not requested from the sponsor. Common examples include:
       
           
# Effort:  A percentage effort (e.g., for faculty or senior researchers) included in a proposal budget or stated in the text of the proposal for which compensation is not requested; and
#            Equipment: The purchase of equipment for the project that was identified in the proposal; however, funds were not requested of the sponsor.
           
       
* Voluntary Uncommitted: Cost associated with a project, not funded by the sponsor, and not identified in the proposal, or in any other communication to the sponsor as a commitment of the University. Includes:
       
           
# Effort of faculty or senior researchers that is beyond the effort committed and budgeted for in a sponsored agreement.
           
Effort: See also [[Effort Certification|UNMC Policy 6105, Effort Reporting]]. To comply with OMB Circular A-21, J.10, principal investigators must commit some effort on each individual sponsored programs whether federal or non-federal, whether  paid or not paid by the sponsor. Exceptions to this requirement include training grants, dissertation support, limited purpose awards (e.g., travel grants, conference support), or salary support provided by another funding source, such as career awards.


Related Federal Regulations and UNMC Procedures
Any questions about this policy should be referred to [http://info.unmc.edu/dept/spaccounting Sponsored Programs Accounting], [http://www.unmc.edu/spa/index.cfm?conref=1 Sponsored Programs Administration], or [http://info.unmc.edu/dept/fincompliance/ Financial Compliance and Cost Analysis].<br />


   
[http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 Procedures for Cost Sharing and Companion Accounts (Cost Sharing Cost Objects)] <br />
* [http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html OMB Circular A-21], “Cost Principles for Higher Education”
*    [http://www.whitehouse.gov/omb/circulars/a110/a110.html OMB Circular A-110], “Uniform Administrative Requirements for Grant and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations"
*    UNMC Procedures for the Approval of Cost Share Commitments  - Under Construction
*    UNMC Procedures for [http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 Companion Cost Share Accounting]
*    See Examples of Allowable Cost Share Expenses under UNMC Policy - Under Construction<br />


Any questions about this policy should be referred to [http://info.unmc.edu/dept/spaccounting Sponsored Programs Accounting], [http://www.unmc.edu/spa/index.cfm?conref=1 Sponsored Programs Administration], or [http://info.unmc.edu/fincompliance Financial Compliance and Cost Analysis].
[http://info.unmc.edu/media/spaccounting/inkind_contribution_form.pdf In-Kind (Third Party) Contribution Record Form] <br />
<br />
<br />
 
This page maintained by [mailto:dpanowic@unmc.edu dkp].
[http://info.unmc.edu/dept/spaccounting/index.cfm?L1_ID=3&ConREF=9 Procedures for Cost Sharing and Companion Accounts (Cost Sharing Cost Objects)] / [http://info.unmc.edu/media/spaccounting/inkind_contribution_form.pdf In-Kind (Third Party) Contribution Record Form]
 
This policy replaces UNMC Policy #6104, issued on 06/27/02.
This page updated on Friday, April 28, 2006, by [http://mailto:dpanowic@unmc.edu dkp].
Retrieved from "https://wiki.unmc.edu/index.php/Special:MobileDiff/1680"