How to Handle Cost Sharing on a Sponsored Award

The federal government does not expect voluntary committed cost sharing in proposals. It cannot be used as a factor during the merit review of applications or proposals unless it is both in accordance with the federal awarding agency regulations and specified in the notice of funding opportunity. When cost share is required as part of the notice of funding opportunity, the cost share is considered mandatory and must be tracked and reported. When cost share is not required by the notice of funding opportunity and effort and/or other costs are quantified and documented in the award or proposal budget or budget justification, unless specifically exempted in the award notice, these costs are considered voluntary committed cost share and must also be tracked and reported.   

If you have an award with cost share, you must submit a Cost Sharing Budget Template including funding and chartstring information to Contracts and Grants Accounting (CGA) within 10 working days of receiving the award notice. The template should disclose the funding source chartstring information and it should include the unrestricted cost sharing Fund, Department ID, Project ID, Activity Period (if from another sponsored project), Function, and Flexfield. As part of the post-award activation process, CGA will post a budget journal on cost share Fund 4900 in combination with the sponsored project chartstring.

For cost shared payroll expenses, departments need to set up the cost sharing distribution lines in the payroll system (via HR Service Centers) for the Principal Investigator (PI) and other staff members using the sponsored fund chartstring and the cost sharing chartstring. On a monthly basis, CGA will post a financial journal to debit the funding source chartstring for the cost share expenses recorded for that time period and credit the sponsored project chartstring under Fund 4900.

During the course the award, the cost share should be monitored by comparing your recorded cost share expenses to your cost share commitment on a periodic basis to ensure that the cost share commitment has been met by the award end date. Additional information on cost sharing can be found in the Contracts and Grants Accounting section of the Controller's Office website at Cost Sharing for Sponsored Awards.

All questions regarding the Cost Sharing process should be directed to CGA Compliance.