Research Policies and Procedures

Research Policies

POLICY ON COST SHARING ON SPONSORED RESEARCH

 Definition

“Cost share” refers to the segment of research project costs which is borne by the University rather than the funding agency or sponsor. It is the amount of project costs that the University agrees to contribute as part of the implementation of the research project.

 There are three types of cost share:

• Mandatory cost share: This is a cost that the funding agency requires from the applicant (the University) towards supporting a portion of the program or project and is a condition to obtain or win a grant award.
• Voluntary cost share: This is a cost not required by the funding agency, but one that is offered by the applicant (University) to be in an advantageous position to win the award.
• In-kind Contribution: This is a cost that could be mandatory or voluntary cost share, but represents the value of all non-cash contributions including services and property, provided by the university and/or a third party. Must be accompanied with an official documentation showing the value/cost.

In any of the above cases, when a research award is received in which cost sharing (mandatory or voluntary) is proposed, the cost sharing becomes a binding financial commitment which the University must provide as part of its contribution for the performance and implementation of the research agreement. If a proposal is accepted and the grant awarded, the cost which is considered a financial commitment,  must be documented, tracked and reported, and is auditable.

Policy

 Since cost sharing represents a University commitment to provide financial resources to a research project it must be approved by key University officials, and must be administered, reported and accounted for. Because of the burden that cost sharing places on the University resources, it is preferable to keep it at a minimum and not to over-commit funds, especially if not required by the sponsor. Cost sharing should only be committed to when it is required by the sponsor and only to the extent necessary to meet the specific requirements of the project.

Procedure

Because cost sharing commitments should be reported and are subject to audit, the University requires appropriate documentation of cost sharing commitments and expenditures in support of those commitments.  Principal Investigators are responsible for: 

1. Securing prior written approval for the necessary cost share funds from the chairs, directors, and/or deans (as needed) of the relevant academic units or commitment from external sponsors in accordance with the sponsor agency program requirements.
2. Maintaining contractual and financial records that explain and verify the execution of cost sharing commitments.

 The amount to be cost shared must be documented on the OGC Proposal Transmittal and Approval form and must be authorized by the Department Chairperson and Dean in the form of an email or letter. The email or letter should include: the home department, the proposed project title, the sponsor name, and the item(s) and amount(s) to be cost shared.

 When proposing cost sharing, it is the responsibility of principal investigators to ensure that the item to be cost shared:

- Is traceable and verifiable through auditable documentation.

- Is necessary and reasonable for the implementation and completion of the project.

- Is incurred within the time frame of the project.

- Is accumulated and reported to the Comptroller’s Office for reporting purposes to the sponsor.

- Is not funded from another grant or contract without agency approval.

 The Department Chairs and the Deans are responsible for: 

1. Verifying and ensuring that the department, and or outside third parties, can and will meet their share of all cost sharing commitments.
2. Determining that the percentage of faculty or staff time committed as in-kind cost sharing contribution is reasonable.

The signature of the department Chairs and Deans on the Proposal Transmittal and Approval Form will serve as endorsement and authorization of the committed cost share claimed by the principal investigator.

The Office of Grants and Contracts is responsible for: 

1. Reviewing the sponsor’s program guidelines and requirements to determine the necessity and the amount to be cost shared during the proposal preparation phase.
2. Verifying the approval of all cost sharing commitments prior to proposal submission.
3. Monitoring the recording and reporting of cost sharing commitments after a project is awarded.

 The signature of the Provost on the Proposal Transmittal and Approval Form shall serve as agreement of cost share claimed.

 Acceptable Cost Sharing items include: 

• Employee time, salaries and fringe benefits (salaries of faculty members or staff who are paid by the University, and who devote a percentage of their compensated time to a sponsored project, without receiving reimbursement from the sponsor).
• Tuition fees and stipends related to work of graduate students on sponsored grants.
• Laboratory supplies.
• Equipment needed for the implementation of the project.
• Travel expenses related to the project.
• Waived or reduced indirect costs – if allowable by the sponsor.
• Sub-recipient cost share – if subcontracting is part of the project, then sub-recipient cost sharing must be tracked and reported.
• Cost incurred by third party in-kind contributions – however the value of a third part in-kind contribution must be established. When the contribution is in the form of an effort of a person, the person must certify that the regular rate of compensation was used in the calculation of costs to be shared. When contributions are other than personal services, the provider must state the market value of the item.