The University wants to minimize its cost sharing or matching on sponsored
projects. Cost sharing or matching will be offered by the University if mandated
by the sponsor or needed to accurately reflect the resources required to conduct
the project. Because cost sharing involves use of departmental or collegiate
funds, department heads or deans may impose limits on the amount of cost sharing
volunteered by faculty and staff in their units.
All committed contributions (cost sharing, matching, and in-kind expenses)
must conform to University and federal policies regarding allowability, allocability,
and reasonableness and must be verifiable through documentation.
The University of Minnesota encourages, supports, and values the efforts of faculty to obtain external funding for their research endeavors. Faculty must therefore be given substantial latitude in developing the scientific and financial aspects of their proposals to increase their success in the highly competitive arena of sponsored projects. However, it is essential that the use of cost sharing does not overburden departmental resources and facilities and administrative (indirect) recoveries. Excessive or unnecessary cost sharing can also have the effect of reducing the facilities and administrative (indirect) cost rate.
Sponsors and auditors must be able to verify that funds committed to cost sharing or matching/in-kind have been provided. Therefore, this policy and its procedures have been developed to help faculty properly include and report cost sharing and matching/in-kind funds, and to indicate when the approval of the department head, dean or other administrators is required.
- Proposal Routing Form
University of Minnesota Notice of Grant/Contract Award (NOGA)
The terms "cost sharing," "matching," and "in-kind" refer to that portion of the total project costs not borne by the sponsor.
The terms "cost sharing," "matching," and "in-kind" are often used interchangeably. Attention should be given to sponsor definitions of those terms. The University's use of these terms is outlined below.
- Cost sharing
- The University generally refers to cost sharing as labor costs.
- Matching
- The University generally refers to matching as nonlabor costs. Cash matches are usually required by sponsors for equipment acquisition programs, specialized research centers, or other multi-disciplinary programs. Typically these funds are provided by the institution.
- In-Kind
- The University considers "in-kind" contributions to be interchangeable with "matching" but the term may refer to costs borne by an external organization, for example when individuals at another organization volunteer their time.
- Mandatory
- Sponsor-driven, i.e., cost sharing or matching/in-kind funds required by the sponsor as a condition for proposal submission.
- Voluntary
- Investigator-driven, i.e., cost sharing or matching/in-kinds funds not required by the sponsor as a condition for proposal submission.
- Committed
- Mandatory or voluntary cost sharing or matching/in-kind funds quantified in the proposal budget, budget justification, or stated in award documents.
- Uncommitted
- Voluntary cost sharing or matching/in-kind funds not pledged in the proposal and subsequently not stated on award documents. This type of cost sharing is
more than what is agreed to as part of the award.
- Reportable
- Committed cost sharing or matching/in-kind that must be documented by the department and must be
reported to the sponsor by Sponsored Financial Reporting.
- Nonreportable
- Committed cost sharing or matching/in-kind that must be documented by the department and is not reported to the sponsor.
- Senior Researcher
- Principal investigator without faculty rank.
- Principal Investigator
- When developing a proposal, principal investigators must:
- commit mandatory cost sharing or matching/in-kind expenses.
- consider all resources required to complete the project's objectives, including their own effort, and budget accordingly.
- check 'yes' to the question on the Proposal Routing Form if they are proposing to commit cost sharing/matching/in-kind.
- Request matching funds.
- Request account number to pay for cost sharing.
- Certify the proper percentage effort on their sponsored projects commensurate with the actual effort they expended, up to the effort level committed.
- Consult with department head to verify that adequate resources are available if increases in voluntary uncommitted cost sharing are necessary.
- Ensure that committed cost sharing or matching/in-kind requirements are met and that documentation is in accordance with University guidelines and sponsor policy.
- Ensure that the process of documenting cost sharing or matching/in-kind has been initiated.
- If required by the sponsor, obtain prior approval for changes to cost sharing and matching/in-kind commitments.
- Department Administrator
-
- Ensure that the grant administrator in SPA is notified when committed cost sharing is not listed or listed incorrectly on the NOGA.
- Use financial reports to ensure that cost sharing or matching/in-kind commitments are being met.
- Ensure that committed cost sharing or matching/in-kind requirements are met and that documentation is in accordance with University guidelines and sponsor policy.
- Department Head
- Provide account number to pay for cost sharing.
Review proposal and PRF to verify that proposed cost sharing or matching/in-kind commitments are correctly identified on
the PRF.
- Evaluate the appropriateness of committed or uncommitted cost sharing/matching/in-kind.
- Define a process that ensures increases in committed or uncommitted cost sharing are reviewed and approved within the department.
- Verify that matching/in-kind commitments are available and documented.
- Dean
- If necessary, approve matching funds that come from sources outside the department or college.
- Review the cost sharing/matching question on the Proposal Routing Form when there is a request to the Dean's office to provide matching funds.
- Sponsored Projects Administration
- Effort Unit: maintain cost sharing database and generate effort certification
statements to ensure that committed cost sharing is documented.
- Grant administrators: Review proposal budget, budget justification and PRF to verify that proposed cost sharing or matching/in-kind commitments are correctly identified on the PRF. Resolve discrepancies between PRF data and sponsor's award notice. Review award terms and conditions and ensure that committed cost sharing, matching or in-kind is noted on the Notice of Grant/Contract Award.
- Sponsored Financial Reporting
- Report committed cost sharing, matching/in-kind as required by the sponsor.
- At project termination, inform department and principal investigator that they must have met cost sharing and matching/in-kind commitments.
- Vice President for Research
- As necessary, approve matching funds.
There are no appendices for this policy.
- Amended:
- June 2008 - Updated information for EFS.
- Amended:
- December 2003 - Updated definitions. Clarified how SPA handles cost sharing on awards that do not receive full funding.
- Amended:
- Effective July 1, 2002 - Added oversight functions for departmental staff and central administrators. Reformatted award-time procedure into step-by-step process. Clarified policy that while faculty and senior researchers (principal investigators without faculty rank) do not have to certify uncommitted cost-shared effort, all other project personnel do. Added information regarding changing cost sharing during the project period. Added Frequently Asked Questions.
- Amended:
- July 2001 - Changed requirement that PIs must show 1% effort. Differentiated between mandatory and voluntary and between committed and uncommitted. Updated Related Information, definitions, responsibilities and procedures to reflect changed requirement.
- Effective:
- October 1998
- Effective:
- October 1998
- Supercedes:
- Guidelines for Cost Sharing and Matching on Sponsored Projects, dated 8/96.
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