The purpose of cost sharing is 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 the Office of Management & Budget (OMB).
In accordance with the University’s cost sharing policy, award monitoring of the cost sharing expenditures should be performed on a routine basis by the Department Administrator and the PI in order to ensure that cost sharing obligations are fulfilled. The Department and PI are ultimately responsible for fulfilling and documenting the cost sharing commitment proposed. If proposed forms of the cost sharing are not achieved, the Department and PI must identify alternate forms of cost sharing to fulfill the obligation to the sponsor, otherwise a reduction in the award funding could occur.
Cost Sharing 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 the sponsored program. Cost sharing on a federal award may not be paid by any other federal award (either direct or flow-through).
When a proposal is prepared, the PI shall work with ORSP to identify cost shared expenses.
- When an award is received that includes mandatory cost sharing, ORSP shall set-up an activity code in Banner.
- 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 (FOAP).
- ORSP shall notify the PI on a regular basis of active grants/contracts that require cost sharing.
Roles and Responsibilities
Principal Investigator: Assures that all cost shared expenses are identified and coded with the proper activity code.
Deans/Department Chairs: Assures that departmental staff who are responsible for entering data into Banner are knowledgeable about the requirements of coding cost-shared expenses.
ORSP: Codes awards with proper cost sharing requirement, creates activity code, and distributes regular reports for notification of cost sharing requirement.