This section provides guidance that will facilitate compliance with Federal Costing and Cost Sharing requirements as set forth in OMB Circulars A-21 and A-110 and the new Uniform Guidance. This guidance applies to both federal and non-federal sponsored programs.
There are two types of cost sharing that occurs on sponsored projects:
- Mandatory
- Voluntary
Approval for cost sharing should be discussed with OSP prior to seeking formal approvals.
The cost sharing types are defined, for purposes of implementation as follows:
Mandatory Cost Sharing
Mandatory cost sharing is that commitment to participate in the cost of the project required either by statute or by administrative regulation. The requirement for such cost participation will be explicitly set forth in project announcements or terms and conditions issued by the sponsor, and will be a requirement for eligibility to participate in the project and will be specifically identified within the University’s proposal.
Mandatory cost sharing also includes any commitment by the University to participate in the cost of the project that is not required by Statute or administrative regulation, but is a part of the University’s proposal to the sponsor.
Voluntary Cost Sharing
Voluntary cost sharing is the University’s participation in the cost of a project when there was no commitment within the University’s proposal to share in the cost of the project or when the University’s actual participation in the cost of the project exceeds the cost sharing commitment made as a part of the University’s proposal.
Examples include:
- A percentage of effort of faculty or senior researchers included in a proposal budget or stated in the text of the proposal for which no compensation or only partial compensation was requested;
- The purchase of equipment for the project, identified in the proposal, for which no funds or partial funds were requested;
- Donated faculty effort on a sponsored project over and above the effort identified in the proposal or award; and
- Academic year effort on a sponsored project for which only summer salary was proposed, if the effort was not listed either on the budget page or in the body of the proposal.
The University does not typically cost share on a voluntary basis. A voluntary commitment of sponsor uncompensated effort and/or other types of commitment should be made only where the competitive circumstances or perceived institutional benefit of receiving the award are deemed to be sufficiently strong warrant the commitment.
Cost Sharing and the Proposal
Any University commitment to share in the cost of a project should be identified early in the proposal process. The department, OSP and the PI share responsibility for ensuring that the following has occurred prior to the submission of the proposal:
- The University commitment and the cost associated with the commitment are in accordance with University Procedure on Cost Sharing.
- The University commitment complies, in all ways, with the criteria for the acceptability of cost sharing.
- The funding source(s) for the University commitment have been identified and authorized utilizing the UT Cost Share Form.
Funding University Cost Sharing Commitments
In general, the responsibility for funding the cost sharing commitment lies with the department/college. Requests to utilize any of these cost sharing funds must be discussed with OSP, prior to submission, and documented on the Cost Share Approval Form.