The purpose of these procedures is to provide University faculty and staff with guidance to assure compliance with federal requirements.
Procedure Steps Cost share procedures effective January 1, 2006
Ø 1. A companion (cost sharing) account will be established for each sponsored project incorporating cost sharing/matching provisions. This includes all projects where cost share is being provided by institutional state funds.
Ø 2. Companion accounts will be numbered uniquely to tie each to its related sponsored project. For example:
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Sponsored Project
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Cost Sharing/Matching
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Institutional State Funds
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10-21-RR163-006
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10-21-CR163-006
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10-25-GR163-000
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10-11-RH163-007
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10-11-CH163-007
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10-11-GH163-000
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10-31-RE163-008
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10-31-CE163-008
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10-31-GE163-000
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25-21-RC279-128
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25-21-CC279-128
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25-26-GC279-000
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3. All costs that have been committed as cost share must be budgeted and recorded in the companion cost share account and readily identifiable as directly benefiting the project. Companion accounts will be budgeted and administered identically to all other operating accounts. For example, if the cost-sharing contribution is in the form of salary commitment, the project effort should be documented through personnel and payroll voucher. If the cost share contribution is in the form of travel or supplies, the cost should be documented in the same way that travel and supplies are charged directly to a
Ø sponsored project (i.e., a travel expense statement, check request, purchase request, p-card, etc.).
The only exceptions to this statement are:
(a) Staff benefits will be automatically budgeted based on actual salary calculations, and
(b) Indirect cost allocable to the companion account will not be budgeted or recorded. Both costs, however, will be recognized by Contracts and Grants in financial reporting.
Ø 4. The source of funds that may be budgeted in a companion account can be any education & general (E&G) fund account of the University (i.e., operational codes G, A, K, or L), except Hatch-funded accounts. In many cases, it will be the departmental research account. Identifying and providing resources for cost sharing of direct costs (including equipment) is always the responsibility of the PI. The PI may NOT utilize funds from federal awards as the source of cost sharing, except as authorized by statute.
Ø 5. On receipt of an award document, Contracts and Grants will establish a sponsored account and assign an account number; budget the sponsored account as awarded; establish a companion account and assign an account number; determine the required cost sharing/matching from the award and the proposal; and provide this information to the department responsible for administering the account.
Ø 6. It is the responsibility of the awarded department to insure that ALL cost share transactions are initiated and completed in a timely manner. Cost transfers for Cost Share accounts must be completed prior to the fiscal year-end.
Ø 7. In some cases, either a University foundation account or a sponsored account, from other than Federal sources can operate in lieu of the companion account. In-kind costs of this type must be approved by the sponsor. If you have another restricted account (i.e., from a private or state sponsor) for a related study, this may satisfy the cost-sharing requirement. In this case the Department Head should approve documentation citing the related contract or grant and briefly explain the relationship between the two projects at the time of proposal submission.
Ø 8. The Department Head and PI are responsible for ensuring the accuracy of cost sharing/matching.
Ø 9. The PI should carefully consider the amount of cost sharing that is required, as well as the difficulty involved in documenting cost sharing, before including cost sharing in the proposal.
Ø 10. Documentation of cost share is required whenever a PI declares in writing a percent effort anywhere within the proposal without requesting compensatory reimbursement from the sponsor.
