Cost Sharing

Cost sharing is a requirement by a sponsor (usually Federal) that the University share in the cost of research. 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 committed $50,000 of cost share in the proposal even though it was not a sponsor requirement.

After cost sharing is committed in a proposal, actual cost sharing must be provided and documented or the sponsor can reduce the award to compensate for the unmet cost sharing. In this 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.

There are four types of cost sharing:

• Mandatory
• Committed
• Aggregate
• Salary Cap
• K Awards

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.