Type of Cost Sharing
Examples
Who approves
• PI
Sponsor guidelines state that no
• Administrator
Mandatory
funds will be provided for PI
• Chair
salary.
• Dean (or designee)
• PI
PI is committing 20% effort but
• Administrator
Voluntary
requesting funds to support just
• Chair
10% salary
• Dean (or designee)
• PI
Faculty working on NIH grant
• Administrator
has Institutional Base Salary in
• Chair
Implicit
excess of the NIH salary cap.
Amount over the cap will be
• Dean’s approval NOT
cost shared.
required
STANDARD PROCEDURE FOR DOCUMENTING COST SHARING
Costs must be otherwise allowable, necessary, reasonable and allocable in order to be
eligible as a cost shared contribution. They must be provided for in the approved budget
period.
The PI and departmental grants administrator are responsible for maintaining records to
document cost sharing.
These records are subject to audit by internal and outside
auditors.
Faculty effort is the most common expense to be cost shared. The electronic effort
certification process will serve to document cost shared effort. In ALL cases of cost
shared effort, the certified effort must exceed the salary charged to the grant in order to
account for the cost sharing. If the cost share creates a variance of 5% or more, the
certifier will be prompted to describe the variance by selecting “salary cap” or “voluntary
cost sharing”.
Non-salary cost sharing can be documented with General Ledger queries along with
purchasing documents which show that the expense benefited the funded project.
In all cases, departmental grant files must document the University’s cost share
contribution; those records must be retained according to the sponsors record retention
requirements.