Division of Finance and Support Services (FSS)

601 University Drive
JCK-920
San Marcos, TX 78666
Ph: 512-245-2244
Fax: 512-245-2033
vpfss@txstate.edu

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Texas State > Division of Finance and Support Services (FSS) > Policy and Procedure Statements > Cost Sharing on Sponsored Programs

Cost Sharing on Sponsored Programs

FSS/PPS 03.04.02
Issue No. 1
Reviewer: Director, Grants & Contracts Administration
Effective Date: 04/15/02
Review Date: 04/06

01. PURPOSE

01.01

The purpose of this policy is to define general Federal and State policies that govern the acceptability of certain forms of contributions as meeting cost sharing and matching requirements. Individual funding agencies may have guidelines that vary slightly from those specified in this policy, so verification of an agency's specific requirements is essential prior to designating what expenditures will be used as cost share.

01.02

To define the method for determining the value of contributions made by Texas State to Federal and State sponsored programs.

02. DEFINITION AND CRITERIA OF ACCEPTABILITY

02.01

The federal regulation OMB Circular A-110 defines cost sharing as "that portion of project or program costs not borne by the Federal Government." Cost sharing is the amount of project costs that the University or other non-federal entity will contribute toward a sponsored activity.

02.02

All contributions, including cash and third party in-kind, shall be accepted as part of the University's cost sharing or matching when such contributions meet all of the following criteria:

1.	Are verifiable from the University's records,
2.	Are not included as contributions for any other federally-assisted project or program,
3.	Are necessary and reasonable for proper and efficient accomplishment of project or program objectives,
4.	Are allowable under the applicable cost principles,
5.	Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching,
6.	Are provided for in the approved budget when required by the Federal awarding agency,
7.	Conform to other provisions, as applicable.

03. POLICY

03.01

Responsibility - It is the responsibility of the Principal Investigator (PI) and the academic department to maintain records on cost shared items. This includes actual costs contributed and documentation for such costs for financial reports submitted to sponsors.

The PI is responsible for maintaining adequate records of the cost share or match and demonstrating to the funding agency or auditor that the cost sharing commitment has been fulfilled.

03.02

Documentation for Grants with a term of 12 Months or less - As part of the grant closeout process, the PI will provide a written report documenting the contributions to the committed cost sharing for a sponsored program. This report will include a detailed listing of the type of expenditure that is being cost shared, such as payroll or equipment, the account that incurred the expense for the cost share and the total dollar value of cost share. The PI must sign this documentation.

03.03

Documentation for Grants Over 12 Months in Length - At the end of each fiscal year and as part of the grant closeout process at the end of the grant, the PI will provide a written report documenting their contributions to the committed cost sharing for a sponsored program. This report will include a detailed listing of the type of expenditure that is being cost shared, such as payroll or equipment, the account that incurred the expense for the cost share and the total dollar value of cost share. The PI must sign this documentation

03.04

Valuation - The methodology for determining values for some of the more frequently occurring instances of cost share is described below. For others not listed, contact Grants & Contracts Administration.

(a)

Volunteer Services
Volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for volunteer services shall be consistent with those paid for similar work in the University's organization. In those instances in which the required skills are not found in the University organization, rates shall be consistent with those paid for similar work in the labor market in which the University competes for the kind of services involved. In either case, appropriate benefits that are reasonable, allowable, and allocable may be included in the valuation.

(b)

Donated Items
Donated supplies or other property may include such items as expendable equipment, office supplies, laboratory, supplies or workshop and classroom supplies. The value assessed to donated supplies which is to be included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation.

Donations must be processed through the Development Services Office. This office is responsible for recording donations in the financial records and for notifying Grants & Contracts Administration of donations for sponsored programs.

03.05

Third Party Contributions to Cost Sharing - The PI will request that the third party provide a written report documenting contributions to the committed cost sharing for a particular sponsored program. When an employer other than the University furnishes the services of an employee, these services shall be valued at the employee's regular rate of pay (plus an amount of fringe benefits that are reasonable, allowable, and allocable, but exclusive of overhead costs), provided these services are in the same skill for which the employee is normally paid.

04. MAJOR RESPONSIBILITIES ASSOCIATED WITH THIS PPS

Major responsibilities for routine assignments associated with this PPS include the following:

Positions	Section	Date
Director, Grants & Contracts Administration	Review	April (E4Y-02)
Assoc. VP, Financial Services/Treasurer	Review	April (E4Y-02)

05. CERTIFICATION OF STATEMENT

This FSS/PPS has been approved by the following individuals in their official capacities, and represents FSS policy and procedure from the date of this document until superseded.

Ms. Charlene Blevens, Director, Grants & Contracts Administration, Reviewer

Dr. Carolyn Conn, Associate VP, Financial Services/Treasurer, Reviewer

Mr. William A. Nance, Vice President for Finance and Support Services

Approved:	____________________________ Reviewer
Approved:	____________________________ Reviewer
Approved:	____________________________ Vice President for Finance and Support Services