Policy Approval Authority | President |
Responsible Division | Division of Research and Innovation Partnerships |
Responsible University Office | Sponsored Programs Administration |
Responsible Officer(s) | Assistant Vice President |
Contact Person | Dara Little, dlittle@niu.edu |
Primary Audience |
Faculty
Staff |
Status | Active |
Last Review Date | 01-01-2019 |
Policy Category/Categories |
Finance / Risk Management
Research Ethics / Intellectual Property Sponsored Funding/Grants and Contracts |
To establish the conditions in which the university will commit to Cost Sharing; the process for including Cost Sharing in a sponsored project; and the core compliance principles that Cost Sharing must meet.
Cost sharing requires departmental and university resources to support the project for which cost share is provided. The cost benefit of these commitments must be carefully considered for each project and a clear plan must be in place to ensure commitments can be met. Proper handling of these costs is required to comply with Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 2 CFR 200.309 (Uniform Guidance) and to provide non-federal sponsors with similar assurance that the university is meeting the terms and conditions of their awards.
Failure to meet Cost Sharing commitments and properly document them can result in loss of funding (including returning previously awarded funds), audit findings, and risk to NIU’s reputation with the sponsor.
The university will normally commit to cost sharing only:
The university is required to track Mandatory Cost Sharing and Voluntary Committed Cost Sharing and make available documentation to auditors or sponsors upon request in order to verify the Cost Sharing amounts claimed.
All Cost Sharing must meet the following core principles:
Salary “effort” above the regulatory cap – For example, the National Institutes of Health (NIH) has a salary cap that limits the salary amount that may be awarded and charged to NIH grants and contracts. The university may pay an individual’s salary amount in excess of the salary cap with departmental or discretionary funds. However, this differential cannot be used for Cost Sharing.
Using fringe benefits – Fringe benefits commensurate with salary are an actual cost to NIU. Fringe benefit costs associated with requested salary cannot be cost shared unless the department/unit submitting the proposal is willing to cover the cost.
Use of NIU-owned equipment – Cost sharing of equipment in NIU’s current inventory is not allowed. The reason for this is twofold:
University facilities such as laboratory space – The use of NIU facilities is recovered from sponsors through the application of the F&A rate assessed on each project. Therefore, offering university space or facilities as Cost Sharing is not permitted as these costs are F&A, not direct costs.
Using donated supplies, materials, and volunteer services - Third parties may contribute Cost Sharing to an award. Because this is not an expenditure made by NIU, documentation that includes the value of the donated supplies, materials, and/or volunteer services from the Third Party should be provided. The SPA Cost Share MOU may be used to document these commitments.
Graduate Research Assistant (GRA) Tuition remission – Tuition remission is pro-rated based on a student’s actual appointment/effort on the project. As such, the full proposed cost of a tuition waiver can be difficult to capture as Cost Share during the project.
Encouraged but Not Required – Some funding solicitations include language noting cost share is encouraged but not required, and/or indicate that committing cost share will make proposals more competitive. This is not Mandatory Cost Sharing.
Approves all Voluntary Committed Cost Sharing. This includes Cost Sharing above the sponsor mandated amount and any commitments offered in response to funding solicitations that include Encouraged but Not Required language.
The portion of the total project costs not borne by the sponsor.
Cost Sharing that the sponsor requires as a condition of obtaining an award. The sponsor requirement must be noted in its published program regulations or funding solicitation.
Cost Sharing that the sponsor does not require as a condition of obtaining an award, but is quantified in the proposal budget or narrative. This includes Cost Sharing commitments for solicitations that include Encouraged but Not Required language. Uniform Guidance prohibits the use of Voluntary Committed Cost Sharing as a factor during the merit review of proposals unless it is a part of the agency regulations or funding solicitation.
The value of non-cash contributions that third parties provide to the project. Third parties must provide documentation to support the use of the funds as university cost sharing and a certification of the fair market value of the non-cash contribution provided.
The difference between the federally negotiated F&A rate applicable to the award and the actual F&A rate approved by the sponsor and used in assessing indirect costs.
Policy Library
815-753-5560
policy-library@niu.edu
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