Sponsored Program Cost Sharing

The University of Montana strongly discourages cost sharing unless required.

When proposing to use existing sponsored funds as cost share, ORSP will request and document permission from current sponsor. 

I.    OVERVIEW

Cost sharing (or matching) refers to the portion, of any size, of project or program costs not borne by the sponsor.

Definitions for cost share below are from the NCURA publication “Cost Sharing: An Overview.”

II.    DEFINITIONS

Mandatory Cost Share – Required by the sponsor as a condition of obtaining an award (i.e., cost share must be included or a proposal will not be considered for funding by the sponsor)

Voluntary Cost Share – Quantified resources offered in the proposal by an institution when the sponsor does not require a specific contribution

Example of quantified resources:  “To accomplish the goals and objectives of this project, the institution will purchase 15 laptop computers and pay the salary of a full-time technical support position.”

However, a similar commitment could be made in non-quantified language, which is the preferred approach:  “To accomplish the goals and objectives of this project, the institution will support the technical requirements as required.”

NOTE:  The University of Montana strongly discourages cost sharing unless required.

• Voluntary Committed:  When award is received in which cost sharing was voluntarily proposed, the cost share becomes a binding commitment and the institution must provide said cost share as part of the performance of the sponsored agreement.  [Ex: Non-federal equipment, supplies, etc.]
  • NOTE:  If full F&A is allowed by the sponsor but the PI chooses not to request it, the amount not included in the budget is voluntary committed cost share.

• Voluntary Uncommitted:  Effort of institution faculty (including senior researchers) that is over and above that which is committed and budgeted in a sponsored agreement.  [Ex: Time and effort, etc.]
  
  • NOTE:  Such voluntary uncommitted cost share should be treated differently from committed effort and should not be included in the organized research base for computing the F&A rate (per OMB memo 1/5/01).

Submitting – Done by the PI or department and given (“submitted”) to ORSP.  Submit cost share on appropriate form:  Use either the Third Party Contribution or the UM Matching Funds, as appropriate.

Recording – Added to the official project file and the cost share database (“recorded”) by ORSP.

Reporting – Available to the sponsor per requirements or request (“reported”).

III.    SUBMITTING, RECORDING, and REPORTING

Mandatory Cost Share is, by definition, required; therefore it is submitted, recorded, AND completely reported.

Voluntary Cost Share (i.e., quantified resources)

• Voluntary Committed
  • It is submitted, recorded, AND completely reported.
  • ORSP staff will notify PI when reporting requirements are met, at which point it no longer needs to be documented.
  • If full F&A is allowed by the sponsor, but waived by the University, the amount not included in the budget becomes voluntary committed cost share.

• Voluntary Uncommitted
  • It is NOT submitted, recorded, NOR reported
    • If, for some reason, voluntary uncommitted cost share is accidently submitted, ORSP staff must record it; however, it is NOT reported.

IV.    USING WAIVED F&A

In some circumstances, if allowed by the sponsor and approved by The University of Montana, waived F&A costs, calculated at UM’s fully federally-negotiated rated, may be used for mandatory cost share.  However, such cost share is calculated not to exceed the amount required.

Example:  If a project prohibits F&A, and the sponsor allows and University officials have approved use of waived F&A, such cost share is calculated at the fully-negotiated federal rate but not to exceed the amount required by the sponsor.

Example:  If a project allows but restricts F&A, and the sponsor allows and University officials have approved use of waived F&A, cost share is calculated at the fully-negotiated federal rate, less the dollar amount of F&A assessed, but not to exceed the amount required by the sponsor.