TUC Sponsored Programs

Cost Sharing

Read the Letter of Provost Harry Hellenbrand, regarding the new cost sharing policy. (October 2, 2006) (pdf)

Download the Cost Sharing Budget Form (excel)

Download the Cost Sharing Certification Form (excel)

1. Definitions

If cost sharing or matching is required or it is negotiated within the grant agreement, the University is required to expend, from its own resources, funds, or obtain third-party in-kind contributions, for the types of costs that would be allowable if federal funds were expended on them.

Cost Sharing

Cost Sharing refers to the sharing of actual program or project costs. Whenever required, the University will show in the approved budget or other appropriate document which program or project costs will be borne by the University and which will be borne by the sponsor.

Cost Matching

Cost Matching is a specific form of cost sharing, which means that the institution must provide additional resources for the program or project expenses in some proportion to the amount to be externally funded.

2. General

Cost Sharing is agreed upon in advance of proposal submission via the completion of the Grant Data Form. When the award budget differs from the submitted budget, the Office of Research and Sponsored Projects must review the award prior to its acceptance by the Corporation.

The University and The University Corporation must ensure that cost sharing commitments for grants and contracts are recorded on proposals, accounted for, and reported in a manner consistent with the terms of the individual award and the general requirements set forth in federal or other applicable regulations. Care must be taken during the proposal preparation process to ensure that all potential cost sharing commitments are recognized and approved. All cost-sharing commitments must be clearly stated in the budget explanation of the proposal.

Generally, the University and The University Corporation will not approve the offering of cost sharing on a voluntary basis. Resources of the University and The University Corporation should only be committed in those instances where cost sharing is mandated by a sponsor or is necessary to make a proposal competitive. In all instances, the use of cost sharing should be kept to reasonable and necessary levels.

Throughout the life of the project, the Project Director, the University and the Corporation must maintain sufficient documentation to substantiate the actual cost sharing contribution and report the cost sharing to funding agencies upon request. Documentation on cost sharing is subject to audit in accordance with the sponsor, University and The University Corporation's policies.

3. CSUN Cost Sharing Policy

Cost sharing commitments should only be made when required by the sponsor and then only to the extent necessary to meet the specific requirements of the sponsored project. It is generally not necessary, from a competitive standpoint, to provide an over-match, or to provide any match at all unless specifically required by the sponsor. Proposals that include cost sharing commitments must have a separate schedule included with the proposal that specifically details the resources used to meet the cost sharing claimed and the approval signatures necessary to authorize fiscal commitment.

4. Criteria for Cost Sharing Sources

Cost sharing contributions, both cash and in-kind, which require compliance to Office of Management and Budget (OMB) Circular A-110 criteria, must be:

  • Verifiable from the recipient's record
  • Not be included as contributions for any other federally assisted project or programs
  • Be necessary and reasonable for proper and efficient completion of the project or program objectives
  • Be allowable under the applicable cost principles (OMB Circular A-21, or other sponsor regulations if the sponsor is non federal)
  • Not be paid by the federal government under another award, except where authorized by federal statute to be used for cost sharing or matching
  • Be provided for in the approved budget when required by the sponsoring agency
  • Conform to other provisions of Subpart C, Section .23 of OMB Circular A-110

5. Allowable Elements

5.1 General Cost Sharing Elements

Cost sharing or matching may consist of the following elements used to further project objectives:

  • Salaries of University faculty or staff who are paid by the University/Corporation, and who devote a percentage of their compensated time to a sponsored project, without receiving reimbursement from the sponsor
  • Fringe benefit costs associated with contributed effort
  • Other direct costs, such as supplies, equipment, non-capitalized assets, or travel that are paid for from allowable funding sources. Project costs financed by cash contributions by the recipient, or by cash from third parties
  • Contributions of services and property donated by recipient or third parties (non-federal public agencies and institutions, private organizations and individuals) provided that the values are established in accordance with applicable cost principles
  • Indirect costs foregone (waived IDC), including rent and occupancy costs, where the Corporation requests less than the federally approved negotiated rate, and where the sponsor does not prohibit the use of indirect foregone as cost sharing

5.2 Third Party In-Kind Contributions

OMB Circular A-110 Subpart C, Section .23 clearly allows for the use of volunteer services as cost sharing, but only when such services are provided by non-federal third parties. The budget, budget narrative, and workscope must all be carefully reviewed to determine if any cost-sharing was offered.

  • Volunteer services by professional, technical, consultants, and other skilled and unskilled labor, which are furnished, can be counted as cost sharing or matching if the service is an integral part of an approved program.
    1. Rates for volunteers should be consistent with those paid in the recipient's organization [CSUN/TUC]. When that is not possible, rates should be consistent with those paid for similar work in the labor market;
    2. When an employer furnishes the services of an employee, those services are valued at an comparable employee's regular rate of pay;
  • Value of donated expendable personal property shall not exceed the market value of the property at the time of the donation;
  • Value of donated non expendable property may be shown by either of the following methods:
    1. The total value of the donated property can be claimed as cost sharing if the purpose of the award is to assist the recipient in the acquisition of equipment, buildings, or land;
    2. In the absence of specific federal approval, only the depreciated or use charge of equipment, buildings, or land can be used if the purpose of the award is to just support the activities that require the use of equipment, land, or buildings.
  • The value of donated land and buildings may not exceed its fair market value at the time of donation, as established by an independent appraiser;
  • The value of donated space shall not exceed the fair rental value of comparable space in the same locality.
  • The supporting records for in kind contributions from non-Federal third parties are as follows:
    1. volunteer services must be documented and, to the extent feasible, supported by the same methods used by CSUN/TUC for its own employees;
    2. the basis for determining the valuation for personal services, material, equipment, land, and buildings must be documented.

    Note: It is the responsibility of the Principal Investigator to ensure that all third-party cost sharing meets these requirements.

5.3 Waived Indirect Cost (F&A Foregone)

The budget approved by the sponsoring agency must contain waived indirect costs to be a part of the cost-sharing requirement to be able to use this method for cost sharing of funds. If waived indirect costs were not included in the approved budget, prior written approval from the sponsor must be obtained before it can be documented as cost sharing.

Example:
The grant was awarded with a IDC rate of 38% MTDC, while the current IDC Rate of TUC/CSUN is 43%. If waived indirect cost were included in the approved budget or prior written sponsor approval has been obtained, the difference of 5% can be documented as waived indirect cost.

6. Procedure

Download a PDF version of the Cost Sharing Procedure.

6.1 Proposal Submission

Principal Investigator

The Principal Investigator prepares the documentation required by the granting agency, including:

  • cost sharing budget
  • cost-sharing commitment from the colleges
  • cost-sharing commitment from third-parties

and submits it to the Dean (or designee).


Dean (or Designee)The Dean (or designee) approves the cost sharing as part of the proposal, and commits the college to provide the necessary cost sharing, if the granting agency will award the project. The Dean (or designee) then routes the proposal to ORSP.

 


ORSPORSP ensures that all approvals have been obtained and submits the proposal to the granting agency.

 


ORSPORSP ensures that all approvals have been obtained and submits the proposal to the granting agency. 

 


Granting Agency

 

6.2 Award of the Grant

Granting AgencyThe Granting Agency awards the grant to TUC/CSUN and sends the award documents to ORSP.

 


ORSPORSP reviews and accepts the award and forwards the award documents to TUC.

 


TUC-SPTUC-SP prepares a ‘Cost Share Budget’ form, based on the cost share information in the award document. TUC then forwards the form to the Principal Investigator

 

Principal InvestigatorThe Principal Investigator verifies and signs the ‘Cost Share Budget’ form.

 

Dean (or Designee)The Dean (or designee) verifies the college’s cost share commitment and signs the ‘Cost Share Budget’ form.

 

TUC-SPTUC enters the information from the ‘Cost Share Budget’ form into the ‘Cost Share Monitoring’ spreadsheet and uses it as basis for its monitoring activities. It forwards a copy of the ‘Cost Share Budget’ form to the CSUN Office of Financial Services and files the original in the ‘Cost Share’ file for the respective project.

 

CSUN Financial ServicesCSUN Office of Financial Services sets up a cost-share project in the CSUN accounting system to capture the CSUN based expenses and prevent them from being used again for a different cost share project

 

6.3 Changes during the Course of the Grant

The Principal Investigator reports any changes to the project that impact cost sharing to TUC-Sponsored Programs. TUC-Sponsored Programs modifies the  Cost Share Budget  form for the project and process it according to the above procedure.

 

6.4 Recording of Release Time as Cost Share

TUC-SP to Principal Investigator or TUC-SP to Dean or DesigneeWithin 60 days after the end of a semester:
TUC-Sponsored sends an email with an attached ‘Faculty Cost Share Effort’ form to the Dean (or designee) of the colleges with cost share projects and asks them to report release time of faculty members used for cost sharing in sponsored programs. TUC copies the affected Principal Investigators on the email.



Dean or DesigneeWithin 90 days after the end of the semester:
The College Dean (or designee) completes the ‘Faculty Cost Share Effort’ form, reporting all release time of faculty members used for cost sharing in sponsored programs. With the signature the Dean (or designee) certifies that the release time:

  • is cost sharing paid by CSUN for the above listed project(s)
  • has not been reimbursed by any sponsored program
  • has not been used as cost sharing in any other project.

The Dean (or designee) signs the form, attaches copies of supporting documentation (PEAS, etc.) and sends it to TUC-SP.

The Dean (or designee) maintains adequate records of the release time for potential review by the auditors

TUC-SPTUC-Sponsored Programs verifies that the release time is allowable cost sharing based on:

  • The cost share expenditures are within the project period
  • The cost share expenditures are budgeted
  • All required signatures are included

TUC-SP then enters the verified release time in the ‘Cost Share Monitoring’ spreadsheet.

If applicable, TUC calculates and records any forgone Indirect Cost that can be used as cost sharing

TUC-SP files the supporting documentation in the ‘Cost Share File

On an annual basis, TUC-SP reports the balances of the cost share expenses to the CSUN Office of Financial Services


CSUN Financial ServicesThe CSUN Office of Financial Services books the balances of the cost share expenses in the cost share projects set up in the CSUN Accounting system, thereby preventing the funds to be used for other cost share projects

 

6.5 Recording of College Operating Expenditures as Cost Share

Principal InvestigatorAs cost share expenditures occur, the Principal Investigator collects, stamps and signs copies of the supporting documentation, verifying that college expenditures were in support of the particular project and forwards them to the Dean (or designee).

 


Dean or DesigneeThe College Dean (or designee) verifies that:

  • The document represents a true copy of the original documentation, which is kept in the college or at CSUN
  • The expenditures are made by the college as cost sharing in support of the particular project
  • The expenditures have not been used as cost sharing for any other project

by signing on the stamp on the supporting documentation. The document is then forwarded to TUC

 


TUC-SPTUC-Sponsored Programs verifies that the expenditures are allowable as cost sharing based on:

  • The cost share expenditures are within the project period
  • The cost share expenditures are budgeted and/or
  • The cost share expenditures meet the same criteria for allowability than regular project expenses
  • All required signatures are included

TUC-SP then enters the verified cost share expenses in the ‘Cost Share Monitoring’ spreadsheet.

If applicable, TUC calculates and records any forgone Indirect Cost that can be used as cost sharing

TUC-SP files the supporting documentation in the ‘Cost Share File

On an annual basis, TUC-SP reports the balances of the cost share expenses to the CSUN Office of Financial Services


CSUN Financial ServicesThe CSUN Office of Financial Services books the balances of the cost share expenses in the cost share projects set up in the CSUN Accounting system, thereby preventing the funds to be used for other cost share projects

 

6.6 Recording of Third Party In-Kind Contributions

Third PartyThe outside organization provides documentation substantiating their effort in support of the project to the Principal Investigator.

 

Principal InvestigatorThe Principal Investigator stamps and signs the supporting documentation from the Third Party thereby verifying that to the best of his knowledge, expenditures were in support of the particular project and forwards them to TUC-SP. It is the responsibility of the PI to ensure that the in-kind contributions are appropriately valuated.

 


TUC-SPTUC-Sponsored Programs verifies that the expenditures are allowable as cost sharing based on:

  • The contributions are appropriately valuated
  • The cost share expenditures are within the project period
  • The cost share expenditures are budgeted and/or
  • The cost share expenditures meet the same criteria for allowability than regular project expenses
  • All required signatures are included

TUC-SP then enters the verified Third Party In-Kind Contributions in the ‘Cost Share Monitoring’ spreadsheet.

TUC-SP files the supporting documentation in the ‘Cost Share File

 

6.7 Recording of Third Party Cash Contributions

Third PartyThe outside organization submits a payment to TUC as part of its cost sharing commitment.

 


TUC-SPTUC receives and processes the check

TUC-SP then enters the payment in the ‘Cost Share Monitoring’ spreadsheet.

TUC-SP books the payment as negative expenses (Account Program Cost) to the main sponsored program, thereby reducing expenditures and increasing funds available in the project.

TUC-SP files the supporting documentation in the ‘Cost Share File

TUC-SP notifies the Principal Investigator of the received cash contribution.

 

Principal Investigator

 

 

6.8 Monitoring and Closeout of the Cost Share Project

TUC-SPDuring the course of the cost share project, TUC –SP continuously monitors the accumulated cost share expenses in the ‘Cost Share Monitoring’ spreadsheet.

For most projects, cost sharing does not have to be fully recognized until the end of the project. However, if there is too big of a discrepancy between the progress of the project and the accumulated cost sharing, TUC-SP will contact and confer with the Principal Investigator.

As requested by the Principal Investigator, TUC-SP provides updates and reports on the status of the cost sharing.

 


Principal InvestigatorThe Principal Investigator ensures that the cost share commitment is met.

On request, the Principal Investigator will provide interim and the final cost share reports to the granting agency.

 

 

 

6.9 Notification

Deans
Deans of the Colleges were notified and agreed to the new procedure during a Provost Council’s Meeting on Tuesday August 19, 2014.

Managers of Academic Resources (MAR’s)
Managers of Academic Resources (MAR’s) of the Colleges were notified of the new procedure during a Provost Council’s meeting on Tuesday August 19, 2014.

Principal Investigators
Principal Investigators will be notified of the new procedure with an email sent in August 2014 by the TUC-Sponsored Programs Dept.

The new procedure will be posted on the TUC-Sponsored Programs website in August 2014.

TUC will work with the Office of Research and Sponsored Programs and Faculty Affairs to conduct seminars with PI’s and MAR’s regarding the implementation of the new procedure beginning September 2014.

6.10 Implementation Date

The new procedure will be effective October 1, 2014.

 

7. Contact Information

Office of Research and Sponsored Projects (ORSP)

Scott Pérez
Director
(818) 677-2901
scott.perez@csun.edu
Mail Stop: 8232

The University Corporation, Sponsored Programs (TUC-SP)

Georg Jahn
Director, Sponsored Programs
(818) 677-2698
gjahn@csun.edu
Mail Stop: 8309