Some sponsored projects require that GHS participate to some extent in the total cost of the project. Cost sharing or matching represents the use of institutional funds to supplement project costs not borne by the sponsoring agency. Matching is usually a specific mandated amount/percentage of the total project costs that is predetermined by the sponsoring agency. Cost sharing, on the other hand, may or may not be required by the sponsoring agency and is negotiable. If cost sharing is proposed in the budget or in the proposal narrative, it should be documented and may or may not be reported to the sponsor; however, departments are required to maintain records for mandatory and non-mandatory cost sharing.
Anytime cost share is included with a project, a cost/share form must accompany the Proposal Processing Form (PPF).
Certain federal agencies and non-profit associations may require GHS to share in the cost of sponsored projects. Sponsoring agencies usually provide policy guidelines within the general administrative brochures or specific program announcements. The term “matching” is used in those cases where the agency has established a required percentage of the total project budget to be funded by the organization. For all other cases, the term “cost sharing” is appropriate for the contribution when the organization determines the amount offered.
The contribution may normally be met through allocation of any costs, i.e., salaries, fringe benefits, supplies, etc., and indirect costs directly attributable to the project’s performance. These contributions are acceptable as long as they can be documented for audit purposes and have not been used for cost sharing/matching requirements on other programs.
Except as stated below, the funding of cost contributions is considered to be the responsibility of the department seeking the sponsored program. The source of the contribution, i.e., department, etc., must be specified on the budget page or the budget explanation page. Consequently, coordination with appropriate department officials is essential prior to processing the proposal for review and approval.
Contributions from outside the institution, i.e., third-party in-kind contributions, may also be used as cost sharing when allowed by the funding agency. Examples may include the waiver of a consultant’s normal fee, the free-use of non-institutional facilities (at its standard “use” rate), or the contribution of supplies that would otherwise have to be purchased from grant funds by an organization other than GHS. In all cases, documentation in the form of a statement or receipt from the contributor must be obtained and kept for audit purposes.
By institutional policy, the waiving of indirect costs is normally considered inappropriate as a means of cost sharing. Waivers must be approved by the Chief Science Officer and routed through the Office of Sponsored Programs. All cost sharing must be formally described and approved through the use of the Cost Sharing Agreement Form. When allowable unrecovered or contributed indirect costs will be used to satisfy the match requirement