Responsible administrator:
Senior Vice President for Finance & Administration
Responsible department:
Contracts and Grants
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Related Links:
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Who should know this policy?
University faculty, staff, and administrative personnel who submit and account for Grants and Contract type funding.
Purpose of the policy
The University of Georgia encourages and supports the efforts of faculty to obtain external funding. It is essential that the use of cost sharing does not overburden University and departmental resources, and it is important that approval of cost share in awarded proposals must be independently tracked, monitored and reported to the sponsoring agency. Excessive or unnecessary cost sharing can result in the future limitation of scarce departmental resources and negatively impacts the overall institutions facilities and administration rates.
Sponsors and auditors must be able to verify that funds committed to cost sharing or matching/in-kind have been provided towards the work and scope of the awarded project. Therefore, this policy and its procedures have been developed to help faculty and departmental personnel properly propose, account, and report cost sharing and matching/in-kind funds.
The terms "cost sharing," "matching," and "in-kind" refer to that portion of the total project costs not borne by the sponsor. The terms "cost sharing," "matching," and "in-kind" are often used interchangeably. Attention should be given to sponsor definitions of those terms. The University's use of these terms is outlined below.
Definitions
Cost Sharing/Matching is any expenditure necessary to complete a project that is borne, not by the sponsoring agency but by the University. These costs may include the portion of salary (personnel) or non-personnel expenditures paid by the University from State funded or privately funded sources that are accounted for within a University account number.
In-Kind costs are borne by an external organization. Funds do not flow through the University’s financial system. In-Kind matching is funding received from another source in conjunction with, or often on the condition of, additional primary funding.
Committed Cost Share can be either mandatory (required by agency) or voluntary cost sharing, matching, or in-kind funds quantified in the proposal budget, budget justification, or stated in the awarding documents.
Uncommitted Cost Share is voluntary cost sharing, matching, or in-kind funds not pledged in the proposal and subsequently not stated on award documents. This type of cost sharing is more than what is agreed to as part of the award. This is commonly referred to as voluntary uncommitted cost sharing and does not have to be documented or reported.
Policy
The policy of the University of Georgia is to limit its cost sharing on externally funded projects to the amount specifically mandated in the application guidelines of the sponsor. The University encourages and supports the efforts of the faculty to obtain external funding. However, Principal Investigators (PI’s) are strongly encouraged to request the total anticipated costs of a project in their proposal budgets. This policy applies to all externally funded project types (i.e., research, public service and outreach, instruction, and cooperative extension). Proposals that voluntarily commit cost share, matching, or in-kind contributions are strongly discouraged. In instances where voluntary cost share is written into the proposal, resulting in a committed cost-share arrangement, a written rationale should accompany all proposals submitted for OVPR approval and signature.
The University of Georgia will support committed cost share that is either voluntary or mandatory by the sponsor when :
All cost shared amounts are specified on the Office of Sponsored Programs Transmittal Form, and
Each cost shared amount is approved on the OSP Transmittal Form by the relevant dean, director, or department head. Approval signatures are binding and indicate a willingness to provide cost share resources in support of the proposed project.
The University places no conditions on third-party matches. Such cost sharing must, however, be guaranteed by the offering sponsor in writing at the time of proposal submission.
Expenditures NOT Eligible for Cost Sharing
The following expenses cannot be offered as cost sharing commitments in sponsored project proposals:
1. Unallowable costs as defined in OMB Circular A-21, section J.
2. Salary dollars above a regulatory cap, e.g., NIH.
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3. University facilities such as laboratory space. PI's should mindful when preparing proposals for sponsored agreements not to commit use of facilities as cost sharing, but rather to characterize the facilities as "available for the performance of the sponsored agreement at no direct cost to the project".
4. Depreciation on federally funded equipment.
5. Overdrafts may not be considered cost sharing for purposes of fulfilling a cost sharing commitment because overdrafts are unallowable under Circular OMB A-21.
Equipment as Cost Sharing
Equipment should not be offered as cost sharing unless the receipt of the award is contingent upon such cost sharing.
PI's should exercise caution in preparing proposals for sponsored agreements not to commit the use of University-owned equipment as cost sharing, but rather to characterize the equipment as "available for the performance of the sponsored agreement at no direct cost to the project".
Proposals that include the acquisition of special-purpose equipment as a direct cost may include an offer of University funds to pay all or part of the cost of such equipment. These proposals may be equipment or instrumentation grants, where
The purpose of the grant is to buy equipment and the University is required to share the cost with the sponsor, or
Research-oriented grants or contracts where the purchase of equipment required for the research is an allowable expense and included in the proposal and award. Purchase and acquisition must occur during the period of performance. The portion of the purchase price paid by the University must be charged directly to a cost sharing account in support of the award.
Cautionary Notes
1) Cost share commitments can be stated in several places within a proposal. They may be part of the budget, part of the budget explanation or justification, or they may be stated in the text of the narrative. They may also be in all three places. No matter where they are to be found within the proposal, statements of cost sharing commitment are binding on the institution should the proposal be funded. In all instances where cost sharing is described, the institution is committed to account for and track these commitments along with funds awarded by the sponsor.
2) When faculty time is contributed as cost share in support of a project, it is expected that budgeted research time be utilized for cost share before instructional time is considered. Whenever cost share involves instructional time, the faculty member's department head and/or dean must be notified so that approval can be obtained.
3) In all instances where cost sharing is described, the institution is committed to account for these expenditures. The budgetary unit of record is responsible for documenting and tracking all commitments made on a project, whether made by that department or not, unless subaccounts are established so that the responsibility can flow down to other units.
Suggested Language for Describing Support
A number of research universities have crafted suggested language to use in proposals to describe institutional support for a project that does not commit the institution or the Principal Investigator to a specific amount of cost share. These statements are purposefully vague and do not constitute cost share commitments; they stay well away from citing percents of time or salaries and make no overt promises of specific levels of support. The University of Georgia fully supports the use of such statements whenever its Principal Investigators wish to address the issue of academic or programmatic contributions or support, but do not wish to formally volunteer cost share.
DO SAY:
"UGA fully supports the academic year salaries of Professors, Associate Professors, and Assistant Professors, but makes no specific commitment of time or salary to this particular project. Key personnel will be available to oversee and direct the project, as proposed." Adapted from Massachusetts Institute of Technology
"Dr. Jones will be providing expert advice and consultation to the project, as needed." Adapted from University of Alabama-Birmingham
"The University demonstrates support to the project through the availability and expertise of the Project Director (or Principal Investigator)." Adapted from University of Alabama-Birmingham
"Dr. Smith is Principal Investigator and requests 25% salary support for this project. She will provide additional support to the project, as needed." Adapted from University of Alabama-Birmingham
"An annual stipend of $15,000 is requested for one full-time Graduate Doctoral Assistantship. It is UGA practice that Graduate Assistantships are supported, in addition to their monthly stipend, through waived tuition costs for each semester enrolled."
DON'T SAY:
"As a state supported institution of higher education, Dr. Martin's salary is paid by the State of Georgia; she will devote 25% effort toward this project."
"The University of Georgia is highly supportive of this project and agrees to be responsible for the salary of the PI for its duration."
"Effort equivalent to $15,000 in salary and benefits will be provided by the PI."
"An annual stipend of $15,000 is requested for one full-time Graduate Doctoral Assistantship. In addition, the University of Georgia will cost-share the Graduate student's out-of-state tuition at an amount approximately totaling $21,088 per year."
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