Cost Sharing on Sponsored Programs
Steve Martin, Associate Vice President for Research
This policy applies to all Indiana University faculty and staff involved in the fiscal operations and administration of grants and contracts or otherwise with the authority to identify expenses under grants and contracts.
It is the policy of Indiana University that cost share should be included in proposal submissions only:
It is, further, the policy of Indiana University that any cost share included in a proposal must meet the regulatory requirements, as appropriate, of the funding agency, university and federal circulars.
The purpose of this policy is to provide direction and process for proposing, contributing, and reporting cost share on externally funded sponsored projects. This policy provides guidance to ensure best practices in the fiscal management of grants and contracts at Indiana University and to meet the requirements of OMB 2 CFR part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and other sponsoring agencies.
Cost share utilizes university resources, and therefore must be approved by the appropriate university offices (departments, RCs and/or campuses) at the time the proposal is routed internally and submitted to the agency. Committed cost share must be documented on the routing form and in the proposal budget. University resources may only be considered cost share if they meet the following criteria:
After the funding agency awards the proposal to Indiana University, the university is required by Federal guidelines to document mandatory and committed cost share. Cost share expenses must be separately budgeted and recorded in Contract and Grant cost share sub-accounts.
It is the responsibility of the department to ensure that the appropriate cost share expenses are booked to the cost-share sub-accounts in a timely manner.
NIH Salary Limitation
The National Institutes of Health (NIH) has placed a limitation on the salary rate which may be charged to NIH grants and contracts. For any employees earning an annualized salary above the limitation, the portion of salary above the cap must be cost shared in order to 1) abide by the NIH policy, and 2) properly document effort on the NIH project. Please see IU Research-Related Policy SPA-11-008 “National Institutes of Health Salary Limitation” for more detail.
Cost Share: Project or program costs not borne by the sponsoring agency. In order to be included as cost sharing it must be:
Mandatory Cost Share: Cost share that is required by the sponsor and must be documented. The requirement may be identified in the funding announcement, award terms and conditions, or within the agency’s policies or guidelines. The cost share requirement may occasionally be in the form of a cost-limitation (such as the NIH salary limitation).
Committed Cost Share: Cost share that is not required by the sponsor but is included by the university in the proposal submitted to the agency. If the proposal results in an award, the cost share included in the proposal becomes part of the award and is therefore committed by the university.
Voluntary Cost Share: Cost share that is provided during the life of the project by the university but was not committed in the proposal or required by the agency. Voluntary cost sharing does not need to be separately budgeted or recorded in cost-share sub-accounts.