Cost Sharing

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Resources

Supplement to Research - Cost Sharing UCSD RES#_________

Effective 5-8-96 cost sharing is considered "formal cost sharing" if it meets one or more of the following criteria:

  1. Included and quantified (e.g., % effort and/or dollar amount) in the proposal budget; or
  2. Specifically identified and/or quantified in any area of the proposal pages (examples of such pages: budget justification, narrative, facilities page, etc.); or
  3. Included and/or quantified in the award document, either directly or by reference to the proposal.
  4. PI effort exceeding 5% included/quantified in the RES page, or 1, 2, or 3 above will be considered as formal cost sharing. (Effort constituting 5% or less while still considered Formal, is defined as immaterial and therefore not officially reported.)

Formal cost sharing will be processed as follows:

  1. Effective 7-1-99: Reported on UCSD's Cost Sharing Subsystem in IFIS.
  2. PI to provide person preparing the proposal written approval to commit cost sharing monies by the appropriate authority prior to submittal of the proposal.
  3. Cost sharing liened/budgeted as part of the project at the time of award or pre-award spending authority, and
  4. Tracked as part of project costs, (including fund liens for future cost sharing commitments), and reported on official project financial reports.

PI Certification

I certify that I have disclosed to the department administrator assisting in preparation of this proposal all specifically identified and/or quantified cost sharing in the proposal budget and narrative. Furthermore, I am aware that it is my responsibility to have secured prior written approval from the Chair, Dean or appropriate source for all cost sharing agreements noted in the proposal. Therefore, I can not hold the Department, Jacob's School of Engineering or University accountable for any additional cost sharing not already specifically revealed in the budget pages of this award.

Signature:_______________________________ Date:________

CSE Implementing Procedure

No index will be supplied for a new award until CSE Financial Administrator has reviewed the funding agency's Award Documentation. In cases where the PI uses their own funds as cost sharing, it is the PI's responsibility to insure adequate funds remain in their accounts to support required cost sharing. After reviewing agency award paperwork and verifying cost sharing support is available, an index number will be provided to PI. At the same time, any noted cost sharing will immediately be liened on indexes identified by the PI as supporting cost sharing requirements.

UCSD OCGA Cost Sharing Requirements

CAS Cost Sharing Requirements

Memo from L. E. Dale, Director, OCGA
Cost Sharing Requirements for All Extramurally-Funded Projects under the Cost Accounting Standards

On August 1, 1996, the Office of Contract and Grant Administration (OCGA) issued a special memo announcing a revised Request for Extramural Support (RES) form. This memo is available on the OCGA Web Site. One of the revisions to the form changed the cost sharing questions in order to specifically identify all cost sharing which, under the Federal Cost Accounting Standards (CAS) must be formally included in the financial records of the project and reported to the sponsoring agency at the end of the project and/or maintained for governmental audit review.

The purpose of this memo is to provide additional guidance as follows:

  1. CAS Covered Cost Sharing - The original guidance referred to "Required Cost Sharing". Since then, the campus has adopted the terminology of "Formal Cost Sharing", to denote all cost sharing which meets one or more of the following criteria:
    • Included and quantified (e.g., % effort and/or dollar amount) in the proposal budget; or
    • Specifically identified and quantified in the proposal narrative; or
    • Included and quantified in the award document, either directly or by reference to the proposal.
  2. Use of "Formal Cost Sharing" was selected to avoid confusion with the "Required Cost Sharing" and "Voluntary Cost Sharing" terminology. Please note that both Required (mandated by agency) and Voluntary (offered by University) Cost Sharing can be classified as Formal cost Sharing if they meet one or more of the above criteria.
  3. All Formal Cost Sharing must be processed as follows:
    • Approved by the appropriate authority prior to submittal of the proposal,
    • Budgeted as part of the project at the time of award or pre-award spending authority, and
    • Tracked as part of project costs, and reported as such on project financial reports.
  4. Cost Shared Effort - All faculty or staff effort which meets the criteria above for Formal Cost Sharing and constitutes more than 5% of the employee's effort must be administered as described above, and must also be certified in the campus effort certification process. Formal Cost Shared effort which constitutes 5% or less of the employee's effort, while still considered Formal, is defined as immaterial and not subject to paragraph 3 below. Please note that this is an important change from the August 1, 1996 guidance in which ALL effort was subject to formal tracking.
  5. Tracking of Cost Sharing - The CAS Implementation team is in the process of developing a campus-wide automated process for identification and tracking of cost sharing from the proposal stage through award/project completion/audit. This system is expected to be available by July 1, 1997. In the interim, departments must continue to manually track all CAS cost sharing which must be formally documented at the end of the project, or more frequently if required by the sponsor, by completion of the attached "Cost Sharing Contribution Report"and submittal to the Extramural Funds Accounting Office.
  6. Advance Notification to OCGA of Cost Sharing - In view of the new CAS requirements for identification of cost sharing, and the varied campus approvals which must be obtained based upon the type of cost sharing proposed, it is essential that the department or Principal Investigator advise the OCGA immediately (minimum 1 week prior) of any proposals that are being contemplated for submission if such proposals contain any type of cost sharing. The OCGA can then assure that timely review of the cost sharing is accomplished, especially since such reviews often require Dean, Vice Chancellor or Chancellor review. In the event that a proposal is submitted without sufficient time for adequate prior review and approval, such proposal will be subject to consideration for formal withdrawal from the agency.