Research and Sponsored Projects Manual (RSP)

Effective: 8/2/1978

Revised: 2/1/2011

RSP 506–03: Cost Sharing Documentation for Sponsored Projects

Purpose

To authorize, identify and document university cost sharing contributions

Sources

United States. Office of Management and Budget. OMB Circular A-21, (as revised). Cost Principles for Educational Institutions

United States Office of Management and Budget. OMB Circular A-110 (as revised). 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 Knowledge Enterprise Development (OKED)

Office for Research and Sponsored Projects Administration (ORSPA)

Policy

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Permissible Cost Sharing

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.

Cost sharing may be required on a sponsored project if 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

   or

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

In general, the university does not cost share on contracts except under extraordinary circumstances.

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Obtaining Cost Share Commitments

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

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Tracking and Reporting Cost Share

The university’s Effort Reporting System, companion account,s or other records supported by transaction reports from the university’s systems will be used to track authorized internal cost share commitments. Expenditures for cost sharing must be:

1. allowable under OMB Circular A-21, Cost Principles for Educational Institutions, and sponsor guidelines
2. 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 shared funds from unrestricted (local) sources. The companion accounts may not be used to account for items not meeting the definition of cost sharing.

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Cost Sharing Documentation

Cost sharing documentation includes, but is not limited to the following:

• certification of PI effort on a sponsored project—the effort report is the documentation for the cost sharing of the PI’s time
• departmental payment of expenses from a companion cost sharing account—the Advantage reports and expense receipts will constitute the documentation for the companion cost sharing account
• departmental payment of expenses from a department state account—the Advantage reports and expense receipts will constitute the documentation for the expenses paid from a department state account
• third-party provision of cash cost sharing to the university from an companion cost sharing account—the Advantage reports and expense receipts will constitute the documentation for the companion cost sharing account
• third-party provision of in-kind cost sharing to ASU—the third party will provide a letter stating the value of the in-kind cost sharing based on applicable cost principles.

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Responsibility for 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 Additional Information

See Article 9, Section 7 of the Arizona Constitution at http://www.azleg.state.az.us/const/9/7.htm.

Cross-References

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.”

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