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Cost Sharing on Sponsored Programs


Office of Research and Sponsored Programs - Standard Operating Procedures

Subject:  Cost sharing on Sponsored Programs

Section: C5

Date: 6/1/03

Approved by: Vice Chancellor for Business & Financial Affairs

Approved by: Provost

I. PURPOSE

 

To document expenses that are in support of a sponsored program (grant/contract) but not paid by the sponsor and are mandatory to meet the conditions of the award, in compliance with Office of Management & Budget (OMB) Circular A-110.

II. DEFINITIONS

 

a. Cost sharing: The portion of project or program costs that are not borne by the sponsor. 

 

b. Mandatory cost sharing: Costs that have been committed by the University towards the support of a program or project. This may be a requirement of the sponsor to be eligible for the award, or it may be voluntarily proposed by the PI/University and accepted by the sponsor as a condition of the award. 

 

c. Office of Management and Budget: The federal office that assists the President in overseeing the preparation of the federal budget and supervise its administration in Executive Branch agencies by promulgating rules and regulations through the issuance of circulars.

 

d. OMB Circular A-110: The circular that sets forth uniform administrative requirements for grants and agreements with institutions of higher education, hospitals, and other non-profit organizations.

 

e. Principal Investigator: The DU employee (usually a faculty member) who is responsible for the proper conduct of research or other activity described in a proposal for an award. Used interchangeably with Program Director.

 

f. Sponsored Programs: Programs or projects that are funded by an external entity through an award (grant, contract, etc.) to the University. Sponsored programs include research, instruction, and other sponsored activities.

 

g. Voluntary Uncommitted Cost sharing (VUCS): Costs that have not been promised and/or quantified to the sponsor, and therefore, not a condition of the award.


III. POLICY

 

Mandatory cost shared expenses shall be documented within DU’s financial system (Banner) by indicating the appropriate Activity Code for each expense transaction that is in support of a sponsored program. Cost sharing on a federal award may not be paid by any other federal award (either direct or flow-through).

IV. PROCEDURES

 

A. When a proposal is prepared, the PI shall work with OSP to identify cost-shared expenses.

 

B. When an award is received that includes mandatory cost-sharing, OSP shall set up an Activity Code in Banner and shall mark the Grant with a cost sharing requirement in the Banner system.

 

C. When a cost shared expense is entered into Banner, the Activity Code shall be included in the entry along with the fund, org, account, and program.

 

D. The Office of Sponsored Programs shall notify PIs on a regular basis of active grants/contracts that require cost-sharing.


V. ROLES AND RESPONSIBILITIES

 

a. Principal Investigator is responsible for assuring that all cost-shared expenses are identified and coded with the proper Activity Code. 

 

b. Deans / Department Chairs shall assure that departmental staff who are responsible for entering data into Banner are knowledgeable about the requirements for coding cost shared expenses.

 

c. Office of Sponsored Programs (OSP) shall code awards with proper cost sharing requirement, create Activity Codes, and distribute reports for notification of cost sharing requirement.


VI. REFERENCES AND AUTHORITY

 

· OMB Circular A-110, Subpart C, Section 23.