UCSD Blink: Cost Sharing: How to Make Cost-Sharing Commitments

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Cost Sharing Overview
Glossary Terms
	Cost Sharing System (CSS)
	Principal investigator
Departments
	Office of Post Award Financial Services

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Cost Sharing: How to Make Cost-Sharing Commitments

Summary: Learn how to make cost-sharing commitments.

Cost sharing is sometimes required by sponsors or by law (mandatory), but in most cases the principal investigator (PI) and the department determine whether or not a project requires cost sharing (voluntary). This voluntary commitment is made when a proposal is developed.

Note: There is no evidence that including cost sharing on a proposal increases the possibility of its acceptance by the federal government.

Avoid making cost-sharing commitments whenever possible. When creating a proposal, use language that does not commit the University to formal cost sharing. If cost sharing is required or is absolutely necessary, follow the steps below:

What to do		How to do it
1	Keep these points in mind as you consider making a cost-sharing commitment.	Make the minimum commitment necessary, which will reduce the University's tracking and reporting burden. Before making a commitment to cost sharing, determine the resources that will be used to fulfill it. Remember that a commitment of University resources usually requires the knowledge of the Management Services Officer (MSO or Department Business Officer (DBO) and approval from the department chair or director. Remember that you may use expenditure sources only once to support a cost-sharing commitment.
2	Calculate the formal cost-sharing commitment.	The PI and department must calculate and document the cost-sharing commitment's financial impact to the University and include this information in the proposal text and budget. Show salary commitments in the proposal budget as a percentage of an individual's time, not a dollar amount. For non-payroll cost reporting, use actual dollar amounts. Because the Cost Sharing System (CSS) requires a good-faith estimate of the financial cost, always enter a dollar value when establishing the cost-sharing budget in the system.
3	Document the commitment.	Summarize the information on the Request for Extramural Support (RES) form. Include the following supporting documentation as needed: A clear description and dollar estimate of the amount of cost sharing that is being committed. Use OCGA-published formulas for salary calculations and benefit rates. The type of cost sharing being committed: expenditures such as salary, benefits, equipment, supplies, or other expenses. Written documentation for any subcontract cost sharing, if subcontractors are responsible for cost sharing on the project. Identification of appropriate funds to cover the cost of the cost-sharing commitment is encouraged but not required. Note: Without specific agency approval, other federal funds may not be used to meet cost-sharing commitments. Unrestricted non-federal funds are typically used to meet cost-sharing commitments. As noted above, a commitment of University resources usually requires the approval of the department chair or director. If the award has no cost sharing, check the "NO" box on the proposal RES form for the three questions regarding cost sharing. Submit the RES form, the proposal, and the supporting documentation to OCGA.
4	Accept and confirm any cost sharing once the award is made.	Cost-sharing commitments become final only upon the University's acceptance of the award. By accepting an award with formal cost sharing, the University incurs an obligation to document, track, and report the financial contributions to the project. Upon notification of award acceptance, the department should verify the existence and amount of any formal cost sharing.