cost sharing basics professional development institute january 2010
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Cost Sharing Basics
Professional Development InstituteJanuary 2010
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Cost Sharing Definition• Portion of total project costs not borne by the sponsor
– Direct• Cash• In-kind
– Facilities and Administrative Cost• OVPR approval required• Sponsor approval required
• Types of cost sharing– Mandatory
• Required by the terms of the sponsor agreement• Salary Cap• Institutional vs. Project
– Voluntary• Committed• Uncommitted
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Federal Guidance
OMB Circular A-21
• Cost Accounting Principles• Allowable, Allocable,
Reasonable
OMB Circular A-110• Administrative Guidance• Cost Share Language Subpart C_23
• Verifiable from recipient records
• Not included as contribution to another federal project
• Necessary and reasonable• Allowable under cost
principles (see above)• Not paid from another
federally-sponsored project (unless approved)
• Provided for in the budget• Conform to other provisions
of A-110
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CSU Guidance
• PI Manual Section VIII– Keep cost share at lowest level possible
• Process Considerations – Proposal Stage– ASAP • Contact your Senior Research Administrator
– Indicate on SP-1 (PASS)• http://web.research.colostate.edu/osp/pdf/sp-1.pdf • Obtain necessary approvals
– Department Head, Dean, Director, OSP, VPR• Identify sources
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CSU Guidance
• Process considerations – Proposal– SP-8 (F&A Waiver)• http://web.research.colostate.edu/osp/pdf/sp-8.pdf
– Institutional Commitment Form• http://web.research.colostate.edu/osp/pdf/
costshare.pdf – Documentation from 3rd Parties
• Process considerations – Award– Creation of cost share account (SP-9)• http://web.research.colostate.edu/osp/pdf/sp-9.pdf
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CSU Guidance
• Process considerations – Award– Creation of cost share accounts• Done after 53 account is set up• Accuracy• Process or changes should be coordinated through OSP
– Cost share account coordinator (Clint McBlair)
– Unrecovered F&A • Account not needed
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Cost Share Issues and Misconceptions
• Cost Sharing is not “Real Money”– Direct Cost– F&A Costs
• Effective rate much less than 47%• Utilities, maintenance, construction, equipment• Human Resources, Department Administration, OSP
• Double “Whammy”– F&A rate calculation– Bigger base = lower recovery rate
• Competitiveness– Leverage vs. cost sharing
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Example Proposal Language
• Effort equivalent to $25,000 in salary and benefits will be provided to the project by Professor Roy Hinkley
• Professor Longhair will act as principal investigator and requests 30% salary support. He will provide additional support as needed.
• Dr. Christmas Jones will have access to addition resources such as a Large Hadron Collider to complete the work of the project
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Valuation Examples
• To demonstrate the value of the energizer battery consumption algorithm we will subject three electric cars (MSRP $25,000 each) to various operating scenarios. The cars will be provided to the project by their owners for the test period free of charge.
• Ray Kinsella will provide a 3 acre tract of land for a period of 1 year to test the efficacy of new field lights at no cost to the project. The fair market value of the land is $5,000 per acre.
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Valuation Examples
• To accomplish the renovation of the homeless shelter Mr. Perry Mason, Esq. will provide 60 hours of general construction work. A noted attorney, Mr. Mason’s billable rate is $500 per hour.
• Mr. Tony Stark will donate 10 copies of his system control software (MSRP $50 each) to the project.
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Valuation Examples
• To celebrate the successful completion of the project the School of Applied Fermentation will sponsor a Beer Pong competition for the faculty and staff associated with the project.
• The sponsor requires 5% cost share for a project and considers tuition an unallowable cost. Since my graduate student worked on the project and my department supported the tuition I can count the tuition toward my requirement.
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Documentation
• Professor “Wrong Way” Feldman neglected to set up the required cost share account to collect the voluntary committed cost share for her project on topography. A memo from her stating that 10 volunteers worked on the project is sufficient support.
• A letter from a corporate sponsor stating, “We support the project by committing goods and services up to $5,000” is sufficient support.