Cost share and matching are commitments from sources other than the funding agency to cover certain costs of a project or to provide in-kind services such as use of space or equipment.
If a project requires cost share, a separate account(s) will be established to document all cost share expenditures. ORC will send the PI a separate Cost Share Memo detailing how to utilize the account(s). Read and follow the directions included in the Cost Share Memo.
It is essential that the cost share account(s) be used to document the fulfillment of your cost share commitments. Failure to properly document cost share may result in an audit finding, the requirement to return agency funds, and could negatively impact future sponsorships.
- Cost share/matching sources can originate from:
- Office of Research and Commercialization Match Commitment Policy for Proposals to Federal Agencies.
- A University department
- A University College
- Other sources from within or outside the University.
A match (cost sharing) account will be established for each sponsored project incorporating cost sharing/matching provisions. This includes projects covered by agency standing policy (NSF), and by other required cost sharing arrangements.
The source of funds may be any education and general (E&G) fund account of the University, and in some instances other non-federal contract and grant (C&G) funded accounts (funding from a foundation could serve as cost share to a federally funded project). It could also be a facilities and administrative (F&A) return account (indirect/overhead).
All costs shared, including those that exceed the contractual requirement, must be budgeted and recorded in the match account except for facilities and administrative (indirect) costs allocable to the match account. Finance & Accounting will recognize both costs in their financial reporting.
Upon receipt of an award, the Office of Research & Commercialization (ORC) will establish a sponsored (C&G) account and assign an account number; budget the sponsored account as awarded; determine the required cost sharing/matching from the proposal and/or award; establish a match account and assign an account number. This information will be provided to the department responsible for administering the account.
For E&G accounts, the Principal Investigator (PI) will coordinate with department/college personnel in the preparation and submission of a budget transfer form to fund the match account.
Charges will be recorded against the two accounts as directed by the PI on payroll vouchers, purchase and check requests, etc.
Cost share should be limited to the amount specifically required by the funding agency. All committed cost share must either be specifically identified in the proposal or by a separate form accompanying the proposal during internal routing and approvals, documented on the Proposal Transmittal Form (PTF) and signed by the responsible party for the cost share commitment (e.g., chair, dean, etc.). Subsequent funding of the proposal requires that all proposed cost sharing be budgeted, recorded and documented in accordance with this policy.
Responsibility for substantiating cost sharing/matching is the PI’s and the Department Head’s.