RSP 506–03: Cost Sharing Documentation for Sponsored Projects

To authorize, identify and document university cost sharing contributions

United States. Office of Management and Budget. OMB circular A-21, Part 99005. Cost Accounting Standard for Educational Institutions

United States. Office of Management and Budget. OMB circular A-110 (revised 9/30/99). Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations

Article 9, Section 7 of the Arizona Constitution

Office of the Vice President for Research and Economic Affairs

ASU requires sponsored project costs to be funded, at the maximum extent possible, by external resources. The university’s decision to authorize the use of internal resources to supplement funding of a sponsored project is based on the availability of funds and the relative importance of the project in furthering the mission of Arizona State University.

The principal investigator (PI) may request the university to provide cost sharing when one of the following conditions is met:

1. cost sharing is required by statute
2. the sponsor’s program announcement, solicitation, by-laws, or other mechanism that invites proposals requires cost sharing as a condition of funding
3. the sponsor explicitly cites in its charter or program description that cost sharing is expected and will be a proposal review criterion

   and

4. specific budget line items are capped in accordance with sponsoring agency guidelines, e.g. NIH salary limitations.

All committed cost sharing must be confirmed in writing, by individuals authorized to commit university resources. Cost sharing in the form of facilities & administrative cost waivers must be explicitly allowed by the sponsor and approved by the associate vice president for research. University funded cost sharing on for-profit sponsored projects is restricted by Arizona statute to Technology and Research Initiative Fund (TRIF) funding.

The Activity Distribution Reporting (ADR) System, companion accounts or other records supported by transaction reports from university systems will be used to track authorized internal cost share commitments. Expenditures for university provided cost sharing must be:

1. allowable under OMB Circular A-21, Cost Accounting Standards, and sponsor guidelines
2. direct costs quantified in the sponsored project proposal budget and/or budget justification, and thus incorporated in the award notice

   and

3. incurred during the authorized period of performance.

Cost sharing companion accounts must be used to track cost share funds from unrestricted (local) sources. The companion accounts may not be used to account for items not meeting the definition of cost sharing.

The principal investigator is responsible for managing all cost sharing commitments specifically related to his or her sponsored project. This entails securing signatures from officials authorized to commit university resources, documenting allowable cost sharing, and ensuring all cost sharing obligations are fulfilled. Failure to fulfill cost sharing obligations may result in loss or reduction of sponsor funding and may adversely affect the university’s ability to obtain future funding from that sponsor.

For more information on how RSP policies are implemented during each phase of a project, see the ORSPA Web site.

For information about proposal budget development, see RSP 303, “Proposal Budget Preparation.”

For information about direct charging of indirect costs, see RSP 508–01,“Charging Direct and Facilities & Administrative Costs to Sponsored Projects.”