1 COST SHARING CReATE ver. 04/13 © 2013 Florida State University. All rights reserved Objective: To understand the requirements related to cost sharing.

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COST SHARING

CReATE ver. 04/13 © 2013 Florida State University. All rights reserved

Objective:

To understand the requirements related to cost sharing to ensure compliance with

federal regulations and FSU Policy.

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Today’s Agenda

What is Cost Sharing?FSU PolicyFSU ProceduresCost Sharing ExpendituresAgency Specific requirementsCost Sharing Accounting in OMNIFACETCommon Issues

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What is cost sharing?

Project costs not borne by the sponsor

Also known as “Matching”

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FSU Cost Sharing Policy

http://www.research.fsu.edu/contractsgrants/costsharing.html

Committed Mandatory – required by agency Voluntary

Not required by agency Reflected in proposal *

Must account for and report Cost share amount not met, award reduced

proportionately Uncommitted (Project Enhancement)

Not quantified Do not have to account for and report

* - quantified in the award document, proposal budget, or proposal narrative

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Cost Sharing Procedures

http://www.research.fsu.edu/contractsgrants/documents/csprocedures.pdf

Sources Unrecovered F&A Personnel costs (FACET) Other direct costs (travel, tuition, consultants,

equipment, etc.) Other sponsored agreements when

appropriate/allowable Award-related (program) income when University is

authorized to expend such income 3rd party contributions

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Cost Sharing Procedures

Cost Share Commitment form http://www.research.fsu.edu/contractsgrants/docum

ents/cs_commit_form.pdf Need when Advance requested Proposal

Prepared and submit to SRS as part of package Award

SRS confirms cost sharing sources at the same time negotiating/executing the sponsor award

The sponsored project budget will not be activated until all cost sharing information has been received

SRAS sets up sponsored and cost share child budgets at same time

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OMB Circular A-110, Subpart C, Cost Sharing Expenditures

Allowable according to OMB Circular A-21 Directly related to the project objectives Not included on any other federally-assisted

awards Not paid by the Federal government unless

authorized by statute Verifiable from recipient’s records Need to spend at the same rate as spending

on the sponsored project

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Allowable Cost Sharing Expenditures

The following are types of expenses that are allowed as Cost Sharing:

Salaries of faculty and technical staff working on project funded from source other than project

Includes related fringe benefits Other direct costs, e.g. travel, laboratory

supplies, equipment, etc. benefiting project F&A on cost sharing MTDC Unrecovered F&A on project

e.g. funded rate = 8% vs. institution rate = 47%

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Unallowable Cost Sharing Expenditures

The following are types of expenses that are NOT allowed as Cost Sharing:

Expenses that University has defined as F&A, such as administrative salaries/supplies, equipment depreciation, and O&M expenses

CAS exemption must be approved to charge F&A costs directly as cost sharing expenditures

Salary dollars in excess of regulatory salary caps, such as the NIH salary cap

Unallowable costs as defined in Section J of OMB Circular A-21

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3rd Party Contributions

3rd Party Cost Share Commitment Form Completed to document what/amount of contribution

proposed Types

Donate services Employee's regular rate of pay plus fringe benefits (cannot

apply F&A) Donate equipment, supplies, travel, facilities

Must document valuation basis Fair market value

Volunteer Value at FSU rate of pay (similar work) Labor market rate of pay if no similar work at FSU

3rd Party Contribution Certification Form Required for reporting preparation

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What are the cost sharing policies of some major funding agencies?

IT IS IMPORTANT TO ALWAYS REFER TO THE SPECIFIC AGENCY GUIDELINES AS AN AGENCY MAY HAVE REQUIREMENTS THAT DIFFER FROM THE CIRCULAR.

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National Science Foundation (NSF)

Statutory requirement that each grantee share in the cost of research projects resulting from unsolicited proposals is no longer effective as of June 1, 2007

Effective January 2011, unless cost sharing requirements are included in the program solicitation, it is not allowed

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National Science Foundation (NSF)

When NSF Cost Sharing is Required

NSF mandatory cost sharing will only be required when explicitly authorized by the NSF Director

Contributions derived from other Federal funds or counted as cost sharing toward projects of another Federal agency may not be counted towards meeting the specific cost sharing requirements of the NSF grant

Failure to provide the level of cost sharing reflected in the approved grant budget may result in termination of the NSF grant, disallowance of grant costs, and/or refund of grant funds to NSF

National Science Foundation (NSF)

When NSF Cost Sharing is NOT Required

If cost sharing included in proposal, then proposer risks the proposal being returned without review or declined

Waiver of any indirect costs to which FSU is entitled would be considered voluntary committed cost sharing and is therefore prohibited by NSF (i.e. FSU charges the federally approved IDC rate on NSF awards)

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Public Health Service

A number of PHS grant programs require non-Federal participation in the costs of grant-supported activities; the extent of that participation is specified by PHS or is negotiable

PHS no longer has a general legislative requirement that recipients of research grants must cost share on their projects. However, specific program legislation may require grantees to share in the cost of the project or the PHS awarding office may administratively apply a matching requirement

US Department of Education

Cost sharing required on certain grants Each state receiving a grant under the State Grant Program or

Teacher Recruitment Grant Program must cost share at least 50% of the amount of the grant award annually.

Each partnership receiving a grant under the Partnership Grant Program or Teacher Recruitment Grant Program must provide from non-federal sources an amount that is at least 25 percent of the TQE grant for the first year, 35 percent for the second year, and 50 percent for all subsequent years.

NOTE: The matching contributions may be in cash and/or in-kind. In any fiscal year, grantees whose approved applications and budgets identified an amount of match that exceeds the statutory minimum for any project period must meet that higher amount.

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Cost Sharing Accounting

“Child” Budgets

Budget checking at child level – must have sufficient balance at child level to “pass” budget checking

Parent

Direct Child700001

Cost ShareChild

Indirect Child700001

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Cost Sharing Budget Setup Matrix

Source of Funds

(Fund Code)

Funding Combination

Fund Transfer

E&G (1xx/2xx) DeptID+1xx+SP Project No

Auxiliary (3xx)** DeptID+3xx+SP ProjectOR

DeptID+555+SP Project

Case by Case

C&G (520-540) DeptID+5xx+C/S Project No

SRAD/PI Support (550) DeptID+555+SP Project Yes(Journal Entry)

FSU Foundation DeptID+555+SP Project Yes/FSUF Ck

FSU Rsch Foundation DeptID+555+SP Project Yes/FSURF Ck

** - only certain types of auxiliaries are allowable as cost share

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Effort Commitment Only

Proposal contains key personnel effort commitments not supported by sponsor funding

No dollar amount proposed as cost sharing

Cost share budget not required Exception when related to instruction

Commitment must be met Documented in FACET application 19

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Cost Sharing Reporting

Mandatory/Voluntary Committed SRAS staff responsible for preparing and

submitting (when required) to agency Source of report are cost sharing budget

expenditures in OMNI Other project used as cost sharing

Department provides ledger of expenditures to be used for cost sharing

3rd party cost sharing documented on certification form

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Cost Sharing and FACET

Faculty Assignments Commitments & Effort Certification Tracking (FACET)

Enter total effort on project on certification page

A-21 page view – automatically allocates effort Direct Charged Salaries Committed Cost Sharing Over the Cap (OTC) Uncommitted Cost Sharing

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Cost Sharing and FACET

Agency Salary Cap (e.g. NIH) Salary Cap must be funded from a non-

sponsored source of funds to reflect institution support

OTC portion is not allowed to be included to meet cost sharing requirement

Fund 556 created to account for the OTC portion of the salary funding

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Common Issues

Setting up cost share budget at Advance stage

Department not “spending” cost share budget Spend at same rate as that of sponsored project Cost sharing expenditures must be reflected in OMNI

budget established

Multi-year projects Cost sharing budget should be increased and funds

transferred (when appropriate)

Over spending on cost sharing budget May cause budget checking issues at direct child if

causes parent to be over budget

QUESTIONS