Cost Sharing

Cost sharing occurs when a specific portion of the project or program costs are not funded by the sponsor; cost sharing cannot be funded from another Federal project.

If proposed, cost sharing MUST be funded and must be authorized by the department, and if awarded, you must have FOA approval. Unallowable costs cannot be included in the portion of costs shared by the University (see A-21 Sec. I).

Costs benefiting another project cannot be included as cost sharing, e.g., costs benefiting Project A CANNOT be included as part of the costs that are shared by the University on Project B.

Further information on cost sharing is available:

• HMS Cost Sharing Policy can be found on FOA's web site
• OMB Circular A-110, Subpart C. 23 discusses the requirements for cost sharing.

Proposal Stage

At proposal stage, the Department specifies whether there is cost sharing on the Proposal Routing Form . The Department should only indicate "yes" to the cost sharing question when there is committed cost sharing other than salary over the cap. All quantifiable cost sharing, whether mandatory or voluntary, offered in the proposal becomes a legally binding and accountable commitment to the University upon award and all costs must be allowable under OMB Circulars A-21 and A-110. The signed Assurance of Compliance form indicates approval by the Department of this cost sharing.

To view the HMS policy, visit the FOA web site.

OMB Circular A-110, Subpart C. 23, discusses the requirements for cost sharing. For more information, visit

http://www.whitehouse.gov/OMB/circulars/A110/A110.html

Award Stage

At award stage, the department fills out the HMS/HSDM Cost Sharing Identification, Tub/Org Approval Routing Form for all committed cost sharing except for the committed cost sharing defined as salary over the cap. The department fills out the description, the percent of effort, and the tub, org, fund and root that will supply the cost sharing. The department submits this cost sharing form to the manager of Cost Analysis (FOA) for approval.

Once SPA receives the cost sharing form from FOA, the SPA rep or AD proceeds with the processing of the award by filling out the activity and sub-activity portions of the cost sharing form. If there are questions about which activity or sub-activity is to be used, the SPA rep or AD works with the department to resolve the issues.

SPA personnel do not proceed with the processing of an award until they receive the approved cost sharing form from FOA, and therefore a missing cost sharing form will delay the account set-up process.

Termination

In certain instances when the award is terminating, OSP Financial Services may require submission of the HMS/HSDM Cost Sharing Identification, Tub/Org Approval and Routing Form. In these cases OSP will contact the department to initiate the form submission. The department should send the form directly to OSP, as approval from FOA and routing through SPA is not required.

For more information, contact your SPA representative.