Determining the Amount of Cost Share Committed
Faculty without Clinical Salary
- Determine the percent of effort pledged and multiply by the institutional base salary (IBS).
- Multiply the dollar amount resulting from Step One by the current fringe benefit rate. (This rate is located in Administrative Applications, choose FIN and Select Screen 9 [Payroll Rate Inquiries])
- Add the result of Step One and Step Two.
- Multiply the sum calculated in Step Three by the Facilities and Administrative Cost Rate (F&A, also called the indirect cost rate). Always use the cost share F&A rate, normally the Standard rate, unless the sponsor specifically requires an alternative rate to be used.
- Add the result of Step Three to the amount calculated in Step Four. This is the amount of cost share committed including salary, fringe benefits and indirect costs.
Example:
| Full Time Salary: | $6496 |
| Percent cost share pledged: | 10% |
| Fringe benefit rate: | 21.7% |
| Indirect cost rate: | 26% |
| Step One: | 0.10 x 6496 = | $650 |
| Step Two: | 650 x 0.217 = | $141 |
| Step Three: | 650 + 141 = | $791 |
| Step Four: | 791 x 0.26 = | $206 |
| Step Five: | 791 + 206 = | $997 |
| $997 is Total Cost Share Committed |
Faculty with Clinical Salary:
- Determine the X portion of the institutional base salary.
- Determine the clinical salary amount from the Change Transaction Memo.
- Determine total salary amount by adding the value determined in Step One to the value determined in Step Two (X + Y).
- Determine the percent of effort pledged and multiply by the result of Step Three.
- Multiply the dollar amount resulting from Step Four by the current fringe benefit rate. (This rate is located in Administrative Applications, choose FIN and Select Screen 9 [Payroll Rate Inquiries])
- Add the result of Step Four and Step Five.
- Multiply the sum calculated in Step Six by the Facilities and Administrative Cost Rate (F&A, also called the indirect cost rate). Always use the cost share F&A rate, normally the Standard rate, unless the sponsor specifically requires an alternative rate to be used.(also called indirect cost rate).
- Add the result of Step Six to the amount calculated in Step Seven. This is the amount of cost share committed including salary, fringe benefits and indirect costs.
Example:
| Full Time Salary: | $6496 |
| Clinical Salary: | $1525 |
| Total Salary: | $8021 |
| Percent cost share pledged: | 10% |
| Fringe benefit rate: | 21.7% |
| Indirect cost rate: | 26% |
| Step One: | 6496 = | $6496 |
| Step Two: | 1525 = | $1525 |
| Step Three: | 6496 + 1525 = | $8021 |
| Step Four: | 0.10 x 8021 = | $802 |
| Step Five: | 802 x 0.217 = | $174 |
| Step Six: | 802 + 174 = | $976 |
| Step Seven: | 976 x 0.26 = | $254 |
| Step Eight: | 976 + 254 = | $1230 |
| $1230 is Total Cost Share Committed |