Cost Sharingⁱ

Cost sharing is a requirement by a sponsor (usually Federal) that the University share in the cost of sponsored projects. For instance, if the total cost of a project is $150,000, the sponsor might award $100,000 and require that the University provide the additional $50,000 from non-federal funding sources. Alternatively, the PI may have quantified and thus committed to $50,000 of cost share in the grant proposal even though it was not a sponsor requirement.

Once cost sharing is committed in a proposal, actual cost sharing must be provided and documented. Failure to do so could result in the sponsor retracting the award or reducing it to compensate for the unmet cost sharing. In the latter case expenditures exceeding the reduced award become a deficit for which the PI is responsible.

Effort that is cost shared is subject to the same requirements as salary that is paid directly from the grant or contract. That is, it must be certified either through the Faculty Effortⁱ Certification (FEC) or Grant and Contract Certification Report (GCCR).

There are four types of cost sharing:

• Mandatory - Required by the sponsor as a condition of receiving the award
• Committed - Not required by the sponsor but included in the grant proposal
• Salary Cap - The proportionate salary amount exceeding the NIHⁱ salary cap
• K Awards  -  Salary related to the effort required to satisfy the K Award effort requirements that is not charged to the K Award project.

Note: Any effort performed that was not placed on the budget page or budget justification of the proposal is considered "voluntary uncommitted effort" and is not documented separately.