Faculty Cost Share
Cost sharing represents the portion of a sponsored project/program cost which is not borne by the sponsor. It is the University's share in the cost of conducting research on the sponsored project/program. (See also, GIM 21). Cost sharing occurs either when a sponsor requires, or the University commits, funds beyond those awarded by the sponsoring agency to support a particular grant or contract.
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 a commitment of cost share in either dollars or percent effort in the grant proposal even though it was not a sponsor requirement.
Cost sharing committed in a proposal becomes an obligation to the University if the proposal is awarded and therefore, 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 through the Faculty Efforti Certification (FEC) report.
There are five types of cost sharing (for more detail see Detailed Definition of of Cost Sharing):
- Mandatory - Required by the sponsor as a condition of receiving the award
- Committed - Not required by the sponsor but included (quantified) 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 requirements that is not charged to the K Award project.
- Shift in Funding Source - Cost share that is created when funding of committed effort is shifted from the grant to non-grant sources, but effort is not reduced.
Note: Any effort performed that was not placed on the budget page or budget justification of the proposal is considered "voluntary uncommitted cost share" and is not documented separately.