Cash Match, Cost Sharing or In-Kind
Campus-wide grant initiatives which require contributions, including cash and third party in-kind from University resources and other agencies must be presented to University Research Services for advance approval before proposal submission. All institution-wide sponsored programs are expected to support the Universitys mission and long-range strategic planning.
Terms, Definitions and Contracts
Cost sharing under the Office of Management and Budget 2 CFR, part 215.23 OMB- A110 defines cost sharing, as that portion of project costs not borne by the federal government. Similarly, State of Maryland agencies and departments follow the federal rule and define cost sharing in their grant and contract agreements as that portion of the project costs not usually borne by the State agency or the department sponsoring the project. The University will define, budget and account for cost sharing as the amount of the project costs the University and its partners, if any, will contribute to the sponsored project.
In some cases a Federal, state or local sponsor may require the campus make a contribution towards the total cost of a project. The amount of such contribution may be as little as 3% or more than 50% of the total project costs. The campus share of such costs may come from several sources:
Other support for the same project, i.e. from non-federal sources if the project is to be federally funded;
A portion of the faculty members project time for which no support funds are being requested;
Facilities & Administrative (F&A a/k/a indirect costs) unrecovered costs for the project (if sponsor permits) or F&A previously earned and deposited to a University account;
Contributed resources (cash, volunteered time, materials, etc.) from a department, the university or an external partner.
Cost sharing should be included only where absolutely required by the sponsor. It is never to be assumed that cost share is a voluntary or gratuitous gesture. Briefly stated, current federal regulations (2 CFR, part 215.23, OMB A-110) not only specifies what types of project costs are acceptable for cash match/cost sharing and in-kind but also requires the University to substantiate, through adequate record keeping, both its cost sharing expenditures and in-kind contributions. The records must show that direct cost sharing expenditures are appropriate, necessary and incurred within the related project period. The records must also provide evidence that the cost sharing expenditures incurred in a particular fiscal year are included in the development of the Universitys F&A costs rate for that same fiscal year. Cost sharing imposes a substantial burden on the principal investigator to provide accurate supporting documentation to the GSR-FGMO and must be in accordance with 2 CFR, part 215.23, OMB-A110..
In order to adequately budget, capture and document cost sharing expenditures required for reporting purposes under State and Federal Grants/Sponsored Programs, the University will attempt to record cost sharing expenditures in separately identified general ledger accounts, if it deems necessary. For tracking purposes, once cost sharing has been committed and approved by the funding agency, it becomes a required component for the success of the entire project.
External cost share must also be adequately documented and reported to the university in a timely manner and as indicated in the grant, contract, subcontract or MOU agreement as required under 2 CFR, part 215.23, OMB-A110. Please note, University compliance requirements must automatically be passed on to subrecipients under a grant, contract or sponsored agreement.
When cost sharing or in-kind is required on an award, the project budget will need to specifically identify the source of University funds (i.e. PeopleSoft department number, etc.) and or any outside sources that will be used to satisfy the cost sharing commitment. Project spending will not be permitted on an award until all cost sharing resources have been identified and verified.
Reporting Cost Sharing
The GSR-FGMO, in accordance with the requirements of the project sponsor, will report cost-sharing expenditures to the sponsor based on adequate documentation collected, approved and submitted from the project administrator to GSR.
Cost sharing expenditures should occur proportionately with direct expenditures. All program cost sharing costs need to be finalized and recorded in the appropriate project cost sharing account(s) within 30 days after the close of the grant period but always before the final financial report is submitted to the sponsor.
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