COST SHARE

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COST SHARE
Neta Fernandez Director, Grants and Contracts
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Cost Share

• What is it?
• What qualifies as cost share?
• When do we document?
• Does it need a CAS template?
• Does CAS apply?

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Definition

Cost sharing or matching means that
portion of a project or program costs not
borne by the sponsoring agency
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Cost Share

• Usually associated with federal grants or
• cooperative agreements - NOT contracts
• Grants/cooperative agreements represent
• financial assistance
• Reasonable to expect recipient to
• participate in costs of project

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Criteria

• In order to qualify as cost sharing, costs
• must be directly identifiable with project
• must represent costs incurred during
• period of performance
• must be allowable under A-21 and guide-
• lines of funding agency

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Types
Of Cost Share

• Mandatory - required by statute or
• program as a condition of award
• Voluntary - offered by the grantee
• when not specifically required by
• sponsor

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Cost Share
In Proposal

• If cost share is shown in proposal
• IT IS A COMMITMENT OF THE AWARD
• It is tracked

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Mandatory/Voluntary

• CAS applies
• requires a CAS template
• requires justifications
• is tracked

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What Qualifies as Cost Share

• salaries (usually of faculty members)
• associated fringe benefits
• equipment
• supplies
• indirect costs associated with these

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Requirements

• Cost share must meet following
• requirements
• verifiable from grantees financial records
• not included as cost sharing contributions
• on any other federally funded project

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Requirements
(Continued)

• necessary and reasonable for project
• allowable under the applicable cost
• principles
• may include indirect costs not reimbursed
• by the sponsor, but only with prior
• approval of awarding agency

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Cost-Share at NMSU

• Direct Cost Cost-sharing
• Matching (Non-Federal Sponsor)
• Indirect Cost Cost-sharing
• Third Party In-Kind

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Direct Cost Cost-Sharing
Definition Actual expenses paid by NMSU with
institutional funds that are required to fulfill
the project scope and were agreed to in the
award.
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Matching (Non-Federal Sponsor)
Definition Another grant/contract awarded to
NMSU that is from a non- federal source that can
be used as a match. Expenses are charged the
normal way to the grant/contract account that is
to be used as a match and then SPA will
report the activity on the matching
grant/contract as a source of cost-sharing to
the other award.
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Indirect Cost Cost-sharing
Definition Waived indirect cost may be used to
meet cost-sharing if approved in advance by the
awarding agency at the time of award.
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Third Party In-Kind Cost-sharing
Definition In-Kind cost-sharing must be from
a third party and must be in support of the scope
of the project. It is a non-cash contribution by
a third party. Written confirmation from the
third party after the in-kind support is
provided will be needed
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Reporting of Cost-Share
SPA will be responsible for reporting to the
agency all cost-share that has been incurred
or accumulated for each project which has a
cost-share requirement.
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Other Information about Cost-Sharing

• Cost-share is audited annually by the OMB
  A-133 Auditors
• If cost-share is committed in the award it must
  be reported to the agency
• Direct Cost Cost-sharing requires
  university resources from unrestricted or gift
  accounts
• Indirect Cost Cost-sharing reduces the Overhead
  recognized at NMSU - Loss of Income!
• Direct Costs can be applied only once as
  cost sharing for all sponsored programs
• Direct Cost Cost-sharing reduces the FA RATE!!!

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Total Project Costs
Total Project Costs Grant/Contract Award
Cost-share Total project costs must be
allocable and benefit the project.
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FAQs
Question Can funds from either a federal or
non-federal source be used to cost share on
another award
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FAQs
Answer
NO. Funds from a federal award may NOT be
utilized as the source of cost sharing, except
when authorized by both sponsors. Per A-110,
non-federal awards may be utilized as the source
of cost sharing ONLY if authorized by the
non-federal sponsor.
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FAQs
Question
If a project requires the purchase of a new
piece of special-purpose equipment, can part or
all of its cost be offered as cost sharing
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FAQs
Answer Yes, you may include in the proposal the
use of University funds to pay for all or part of
the cost of special-purpose equipment as a direct
cost. This will be recorded in a cost share
account.

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FAQs
Question Can University facilities such as
laboratory space be offered as cost sharing

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FAQs
Answer No. These costs are charged to
sponsors through the indirect cost rate.
The proposal may contain a statement saying that
the facilities are available for the performance
of the sponsored agreement at no direct cost to
the project.

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FAQs
Question If the total amount of a proposed
budget is reduced by the sponsor when the award
is received, is the difference considered cost
share

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FAQs
Answer No, as long as the reduced amount
of money also reflects a reduction in the scope
of work. It may be a good idea to prepare and
submit a revised budget and scope of work.

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FAQs
Question Does CAS apply to cost shared direct
costs ?

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FAQs
Answer
Yes. OMB A-110(23)(a)(4) requires that cost
share be allowable under the applicable costs
principles. This requires that direct costs
and any indirect costs counted for cost
sharing are allowable costs for the project
and comply with A-21 which are the
cost Principles with which NMSU is required to
comply. CAS is part of OMB A-21.

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FAQs
Question Does CAS apply to third party In-Kind


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FAQs
Answer Since expenditures are not incurred by
NMSU, the CAS standards we follow would not
apply. There are many other applicable sections
of OMB A-110 that should be followed with
regards to third party In-kind. See OMB A-110
Section 23.

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FAQs
Question Does cost share expense have to
fall within the project period of the award

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FAQs

Answer Yes, unless otherwise stated in the
award agreement. This can get tricky with
matching or third-party In-kind cost sharing.
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FAQs
Question Does cost share affect our
FA rate

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FAQs
Answer Yes, in the case of cost share of direct
costs, our FA rate is reduced. In the case of
cost share of indirect cost share, our income
generated from the FA rate is lower. So overall
the answer is YES!!

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Thank you!
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Questions?