Cost Sharing

When the University bears a portion of the costs of a sponsored project (e.g., by purchasing equipment or supplies for the project from University resources, by committing faculty or staff effort to project at no cost to the sponsor or by waiving all or a portion of F&A costs), it is considered to be cost sharing. Cost sharing can be classified in the following ways:

• Mandatory Cost Sharing: Cost sharing that is required by the sponsor as a condition of the award. Such requirements are typically noted in the sponsor’s program announcement, request for proposals, etc.
• Voluntary Cost Sharing: Cost sharing that is not required by the sponsor, but is included in the proposal.

During budget preparation, if any type of cost sharing is identified (with the exception of salaries exceeding the DHHS/NIH salary cap), a guarantee letter must be provided to the SPA Project Officer at the time of proposal review, which includes a non-sponsored/unrestricted SPA project number to cover the cost sharing costs, and a justification for the cost sharing.

If awarded, separate ARC project numbers will be created for any mandatory cost sharing identified.

For more information, see the University’s Policy on Cost Sharing and Financial Management of a Sponsored Project: Monitoring a Sponsored Project – Cost Sharing (Chapter VIII, Section F(4)).