VCR Cost Share Policy

Cost Sharing

Cost sharing, also called matching, refers to resources contributed or allocated by the university for any project cost that is not reimbursed by the extramural project sponsor to support the scope of work defined by the sponsored award.

Who Must Comply

All Principal Investigators (PIs) and administrators at the university within all colleges, departments, units, divisions, university-wide initiatives, and centers who are involved with the administration and conduct of sponsored awards must comply with this policy.

Types of Cost Sharing

Mandatory Committed Cost Sharing: Required by a sponsoring agency as a condition to receive an award. The minimum committed cost-share amount is specified by the agency in the request for applications (RFA) or program solicitation. Departments must track this type of cost share (through, for example, companion accounts, separate ledgers, effort reports), and the Office of Sponsored Programs will monitor it; reporting to the sponsor may be required.

Voluntary Committed Cost Sharing: Not required by the sponsoring agency, but committed voluntarily by the University in the application. This specific commitment could appear in the budget, budget justification, or the narrative; it becomes a binding requirement of the award, must be tracked, and may require reporting. “Under federal research proposals, voluntary committed cost-sharing is not expected. It cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is both in accordance with Federal awarding agency regulations and specified in a notice of funding opportunity” (Uniform Guidance 2 CFR 200.306).  Some federal sponsors prohibit voluntary committed cost sharing in proposals.

Voluntary Uncommitted Cost Sharing: Expenses and effort, such as faculty salaries, that are over and

above amounts committed and budgeted for in a sponsored agreement. This type of cost sharing does not require tracking or reporting.

In-Kind Cost Sharing: Contributions of goods or services whose value can be readily determined, verified, documented and justified, but for which no actual cash is transacted in securing the contributed good or service. An estimated value of the in-kind cost sharing should be determined and documented based on the fair market value at the time the award is accepted. In-kind cost sharing must be tracked manually by the department/local unit managing the award and retained for audit; reporting to the sponsor may be required.

Securing Cost-Sharing Commitments

It is important to begin the process of securing cost-sharing commitments long before an application is due. Commitments should be documented as much as possible.

Proposal Routing in NuRamp

Request for Cost Share Funds from ORED

If cost sharing is required on an application that is considered a limited submission (that is, the sponsor allows submission of only a limited number of applications from one campus, and an internal competition is used to determine which applications will represent UNL), the PI’s proposal for the internal competition should list the planned sources and amounts of cost share.