Cost Sharing

Cost sharing occurs when UVM contributes quantifiable resources to a sponsored project beyond the amount paid for by the sponsor.

Types of Cost Sharing

• Mandatory Cost Sharing
   * Required by the sponsor as a condition for applying and being selected for funding. Mandatory cost sharing will be accounted for and is reportable in financial reports being submitted to the sponsor. Any change to mandatory cost sharing must be approved by the sponsor.

• Voluntary Committed Cost Sharing
   * Consistent with the Uniform Guidance 2 CFR 200.99 & 200.306, voluntary committed cost sharing means cost sharing specifically pledged (quantifiable) on a voluntary basis in the proposal’s budget or budget justification.

• Binding Obligation
    * Mandatory and voluntary committed cost sharing represents a binding obligation once an award has been accepted.

• Not considered Cost Sharing
    * Commitments made in other sections of the proposal, including but not limited to Facilities and Resources, Other Support, and Letters of Support, do not meet the definitions of Cost Sharing.

UVM Cost Sharing Guidance at time of Proposal

  • Cost sharing is limited to mandatory cost sharing; however, voluntary committed cost sharing is allowed where the academic unit has determined that such a contribution is necessary to ensure a competitive proposal.
  • Where mandatory cost sharing a copy or web link to the funding opportunity, regulations or guidelines must be submitted to SPA with the proposal.
  • Where cost sharing is not mandatory or necessary for the competitiveness of a proposal, Principal Investigators and departments should refrain from making such commitments voluntarily.
  • In all situations, the use of cost sharing should be kept to a reasonable level because of the burden that cost sharing places on institutional or departmental resources.
  • Cost sharing occurs when UVM contributes quantifiable resources to a sponsored project beyond the amount funded by the sponsor.

Cost Share Approvals

All cost share, mandatory (reportable), voluntary committed (not reportable) included in a UVMClick - Funding Proposal that is being provided by the PI's submitting department and/or college is approved as part of the electronic workflow approval process.

If cost share is being provided by a non-submitting unit (outside the route) the Cost Share Request and Approval Form must be completed by those non-submitting units and uploaded into the Funding Proposal smartform.

Cost Share Approvers:

  • Department Chair or designee - Approves cost share from department funds.
  • Dean or designee - Approves cost share from college funds.
  • Department Chair or designee - Approves cost share from department funds.
  • Provost, OVPR or their designees – Approves cost share from respective budgets.

National Science Foundation Cost Sharing Policy

  • The National Science Foundation prohibits voluntary cost sharing.
  • Voluntary cost sharing found in a NSF proposal is grounds, for return without review or decline.
  • NSF only allows mandatory cost sharing when required by the NSF Program Announcement.
  • See the NSF Cost Share Policy (PDF) and Related NSF FAQs.

Eligible Cost Sharing contributions must meet all of the following criteria

  1.  Are verifiable from UVM’s accounting records;
  2. Are necessary and reasonable for the accomplishment of project activities;
  3. If federal, are allowable under Uniform Guidance – Part 200, Subpart E—Cost Principles;
  4. Are not included as contributions to any other sponsored award;
  5. Are not from another sponsored award, except where the Sponsor specifically allowed; and
  6. Where cost sharing on federal projects must be from non-federal sources.

Third Party Cost Share

Less frequently, cost share requirements are met by a third party, such as another institution providing in-kind effort on a project by a subrecipient providing cost share as part of a subaward agreement with UVM.

In the case of in-kind effort provided by another institution, the cost share is documented by a signed memorandum from the other institution to UVM indicating the names of the individuals who contributed effort, the associated salary and fringe benefit amounts, and the dates in which effort was expended.

For a subrecipient, the cost sharing will be documented on invoices provided to UVM and scrutinized by the Principal Investigator, the business unit administrator and by SPA administrator prior to processing the invoice for payment.

Example: In-kind: Subrecipient has committed $1,000 of cost share. Per invoice #123 dated 1/1/10, subrecipient has contributed $500 of cost share

Unrecovered F&A (Waived F&A)

Some sponsors do not pay UVM's full negotiated F&A rate. In these cases, the difference between what the sponsor will pay and UVM's actual F&A rate is considered unrecovered F&A and this unrecovered F&A quite often contributes to the overall cost share commitments.

In those cases, the unrecovered F&A is not budgeted in Commitment Control since there are no associated financial transactions in Commitment Control or in the GL. However, the commitment is still noted in the Additional Information link on the Award Profile page.

Example: Waived F&A - Cost share commitments will be met with unrecovered F&A.