Cost Sharing, Commitments & Internal Agreements

UM Cost Sharing occurs when an Investigator is required by the sponsor to provide quantified resources to a sponsored project beyond the amount funded by the sponsor, or the investigator indicates and quantifies additional support they will provide to the project in a proposal although it is not required by the sponsor.

Cost sharing is considered a Mandatory Commitment if the cost sharing is a stated sponsor requirement.  If the sponsor is silent about cost sharing or states that cost sharing is “encouraged,” cost sharing is not considered mandatory. The sponsor may require a certain percentage/type of cost sharing or that applicants “match” the sponsor’s contribution. Any quantifiable cost sharing described in the proposal by the investigator becomes a condition of the award and must be documented and reported to the sponsor. Cost sharing is a Voluntary Commitment when an investigator describes a quantifiable amount of contributed resources to the project in the proposal even though the sponsor does not state in the guidelines that cost sharing is required. UM views any voluntary cost sharing described at the proposal stage as a cost share commitment at the award stage. This means that any voluntary cost sharing described in a proposal submitted to a sponsor becomes fiscally and/or programmatically auditable and must be documented and reported to the sponsor, as needed, if the proposal is funded.

Mandatory & Voluntary UM Cost Share Commitments:

• Are outlined in the PAF in section 3.1 Budget Components / UM Cost Sharing

• Are quantified in the proposal to the sponsor

• Are outlined on the Award Record as a condition of the award (notify the ORSP project representative of any cost share discrepancies immediately)

• Have a shortcode established by Sponsored Programs at the time of award

UM Cost Share Budgets

At the time of award, budget and shortcode(s) associated with the sponsored project are established in the financial system for all Committed Cost Share as indicated on the PAF and documented on the Award Record. The Cost Share budget should align with the PAF Cost Share and the Cost Share documented on the Award Record.

Note: Cost Share commitments are entered as a budget representation of the PAF Commitment (e.g. % effort, or time, commitments are represented as a dollar amount the same way salary & fringe commitments are). In some instances, it may be necessary to adjust a cost share budget commitments to more accurately reflect non-dollar commitment amounts by working with the ORSP Project Representative.

Fulfilling and Funding UM Cost Share Commitments

Throughout the life of the project, the PI and accountable research staff are responsible for monitoring cost share commitments to ensure the required commitment is being met.

• For effort commitments, process a PAR to allocate the promised effort to the cost share shortcode.

• For goods and services commitments (e.g. supplies, services, equipment or other goods), charge the promised goods / services to the cost share shortcode.

• Although Cost Share IDC commitment amounts are listed in the Award Record, IDC Cost Share budget is NOT entered and IDC cost share expenses are NOT charged to the Cost Share PG.  If indirect costs are an allowable cost share expenditure the IDC is imputed (or credited as an expense) by sponsored programs at closeout.  

• Units are responsible for transferring revenue to Cost Share chartfields and should pre-determine the point during the project in which the transfer(s) will occur.

UM Other Commitments, refers to effort or resources contributed to a sponsored project beyond that which are budgeted for in a sponsored agreement. UM other Commitments are not included in the sponsor proposal budget and the resources are not quantified in the narrative (e.g. the PI will provide additional resources as needed). UM Other Commitments:

• Are outlined in the PAF in section 3.1 Budget Components / UM Other Commitments

• Are not included on the Award Record

• Do not have a shortcode established by Sponsored Programs at the time of award and are not tracked in the financial system

Internal UM Agreements occur when one or more units make a commitment to provide a resources to a sponsored project if the project is funded but the agreement is not referenced in the proposal or shared with the sponsor. Internal UM Agreements: 

• Are outlined in the PAF in section 3.1 Budget Components / Internal UM Agreements

• Are not included on the Award Record

• Do not have a shortcode established by Sponsored Programs at the time of award and are not tracked in the financial system

Requesting establishment of a cost share chartfield to track UM Other Commitments or Internal Agreements

UM Other Commitments and Internal Agreements are not recognized on the Award Record or established in the financial system at the time of award. However, there may be instances in which a Unit finds it necessary to track the internal expenses related to a specific sponsored project. In these instances, the unit is responsible for requesting establishment of a cost share chartfield.

Non-UM cost sharing and Other Commitments refers to projects which include non-UM contributions (e.g. time, resources, or space by an entity off campus such as the VA or local community organizations. Non-UM Cost Share and Other Commitments:

• Are outlined in the PAF in section 3.1 Budget Components / Non-UM Cost Sharing and Other Commitments

• Are not included on the Award Record

• Do not have a shortcode established by Sponsored Programs at the time of award and are not tracked in the financial system

• Require documentation from an appropriate official certifying the commitment was met at closeout

Information is located on the PAF in section 3. Budget / Non-UM Cost Sharing and Other Commitments. No cost share shortcode is established by Sponsored Programs however documentation from an appropriate official certifying the commitment was met is required at closeout.