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 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 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.
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.
- 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;
- 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:
- 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;
- 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:
- volunteer services must be documented and, to the extent feasible, supported by the same methods used by CSUN/TUC for its own employees;
- 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.
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.
6.1 At the Beginning of the Project
Step 1: ORSP Provides Cost Sharing Information
At the time of the award, The Office of Research and Sponsored Projects (ORSP) will send a post-award cost sharing information to TUC.
Step 2: TUC Notifies of the Cost Sharing Requirement
The University Corporation (TUC) will officially notify the Principal Investigator, Manager of Academic Resources (MAR) of the College (if applicable*) , the Office of Financial Services, and the Office of Research and Sponsored Projects (ORSP) via a memo of the Cost Sharing requirement.
Step 3: TUC Prepares a Cost Sharing Budget
TUC in cooperation with the Principal Investigator, prepares a Cost Sharing Budget (Download the Cost Sharing Budget Form (excel)). The cost sharing budget lists the amounts and types of expenditures that are intended to be used for cost sharing by year.
Step 4: TUC Sends Cost Sharing Budget to CSUN Accounting
The University Corporation (TUC) will send the Cost Sharing Budget to the Office of Financial Services, the Principal Investigator, and the Manager of Academic Resources (MAR) (if applicable*).
Step 5: CSUN Accounting Sets Up Cost Sharing Project
The Office of Financial Services will set up a cost sharing project in PeopleSoft. Each project number will have the following mask: 4SHARExxxxxxxx, where the x's represent TUC's project number. The Office of Financial Services will communicate the project number to the Project Director, TUC, the Office of Research and Sponsored Projects (ORSP) and the Manager of Academic Resources (MAR) at the respective college (if applicable*).
6.2 During the Course of the Project
Step 6: PI/MAR Document the Cost Sharing Expenditures
During the course of the project, the Principal Investigator and the Manager of Academic Resources will document the cost sharing expenditures.
Step 7: MAR Maintains Cost Sharing Records
The Manager of Academic Resources (MAR) (if applicable*) will maintain the record of the cost sharing expenditures, the final cost sharing report and the source documentation for the appropriate period required by the Corporation's policy and grant requirements.
Step 8: TUC Provides Information on Allowability of Cost Sharing Expenditures
The University Corporation will provide information on expenditures designated as cost sharing for allocability, allowability, consistency, and if the expenditures have occurred during the project period.
Step 9: PI Sends Semi-Annually Certification to The University Corporation
The Principal Investigator will provide a certification (Download the Cost Sharing Certification Form (excel) ) of the progress of cost-sharing reports to The University Corporation on a semi-annually basis throughout the contract period of the sponsored program project.
Step 10: CSUN Accounting Books Cost Sharing Expenditures
The Office of Financial Services in coordination with the Principal Investigator and the Manager of Academic Resources (if applicable*) will book the cost sharing expenditures towards the cost sharing project on an annual basis.
6.3 At the End of the Project
Step 11: TUC Notifies of Project Closure
Approximately 30 days before the end of the project period, The University Corporation notifies the Principal Investigator, the Office of Financial Services and the Manager of Academic Resources (if applicable*) of the impending closure of the project.
Step 12: PI/MAR Close-Out Cost Sharing Project
At the end of the project, the Principal Investigator and the Manager of Academic Resources (if applicable*) at the respective college will ensure that all expenditures to be used for cost sharing are booked in the cost sharing project.
Step 13: PI/MAR Sends Final Cost Sharing Certification to TUC
The Principal Investigator and the Manager of Academic Resources of the College (if applicable*) will provide the final cost-sharing certification (Download the Cost Sharing Certification Form (excel) ) to The University Corporation at the end of the project.
Step 14: PI Submits Final Cost Sharing Report to the Granting Agency
The Project Director will submit the final cost sharing report to the granting agency, or coordinate with TUC to have the report submitted.
* Note: Cost Sharing projects at the Colleges require the involvement of the Manager of Academic Resources (MAR) of the respective college. Cost Sharing projects under the University Administration are solely handled by the Principal Investigator.
7. Contact Information
Office of Research and Sponsored Projects (ORSP)
Mail Stop: 8232
The University Corporation, Sponsored Programs (TUC-SP)
Director, Sponsored Programs
Mail Stop: 8309