M. Cost Sharing on Externally Sponsored Programs
1.1 Cost sharing is that portion of "allowable" externally sponsored program costs not borne by the sponsor. "Allowable" costs are defined in OMB Circular A-21, the federal cost principles for educational institutions.
1.2 Mandated cost sharing is that which is prerequisite to an award by the sponsor.
1.3 Voluntary cost sharing is that which is proposed or offered but which is not prerequisite to an award.
1.4 "Matching" is a form of cost sharing often characterized by a required ratio (e.g., 1:1) of cost sharing to sponsor supported costs.
1.5 "Off-set" is a form of non-federal cost sharing associated with USDA land grant appropriations.
1.6 Companion cost sharing funds are University of New Hampshire (UNH) account funds established for the purpose of budgeting, accumulating, and tracking the cost shared expenses associated with a particular sponsored project.
2.1 UNH encourages charging the sponsor for all allowable costs associated with a sponsored program, including direct costs and the associated facilities and administrative (F&A) costs necessary to complete the objectives of the sponsored program. However, UNH may or must agree to share project costs in the following situations:
2.1.1 Normally, the University will agree to share project costs only when mandated by the sponsor. Prior to submitting a proposal to a prospective sponsor, the University formally reviews each potential offer of cost sharing and determines whether or not to approve the offer for inclusion in the proposal to the sponsor. To be proposed as cost sharing, costs generally must be (1) mandated by the sponsor, (2) necessary and reasonable for proper and efficient accomplishment of program objectives, and (3) allowable under the applicable cost principles.
2.1.2 Cost overruns on individual sponsored programs must be treated as cost sharing by UNH and must be included in the direct cost base of all sponsored programs for purposes of the Facilities and Administrative (F&A) cost rate calculations.
2.2 To minimize UNH's liability if an offered award amount is less than requested, proposed cost sharing should be expressed as a percent of total project cost whenever permitted by the sponsor.
2.3 Expenses used for cost sharing purposes on one project may not be used to meet the cost sharing requirements of any other federally sponsored program at UNH.
2.4 Cost sharing must be verifiable in the UNH accounting system or other appropriate records. Companion UNH account funds should be established for purposes of budgeting, accumulating, and tracking expenses cost shared on UNH awards, as described in sections 3.1 and 3.3 of this policy. Such account funds should be established contemporaneously with the companion award and funded promptly and regularly through the award project period.
3. Cost Sharing Sources. In accordance with OMB Circulars A-21 and A-110 (Uniform Administrative Requirements), possible cost sharing sources are as follows:
3.1 Expenses funded from University accounts (e.g., educational and general funds) and not included as cost sharing for any other federally sponsored program at UNH
3.2 Expenses funded from non-federally sponsored accounts and not included as cost sharing for any other federally sponsored program at UNH
3.3 Program income related to the particular sponsored program when approved in advance by the sponsor
3.4 Unrecovered F&A costs for the particular sponsored program, with UNH and sponsor prior approval
3.5 Federally sponsored awards where authorized by Federal statute (very rare)
3.6 Cash and in-kind contributions from sources external to UNH, including volunteer services by professional and technical personnel, consultants, and other skilled and unskilled labor; and donated supplies and equipment. These contributions may not be included as contributions for any other federally sponsored program at UNH. Values for contributions of services and property must be established according to OMB Circular A-110 and/or sponsor administrative requirements.
References: OMB Circular A-21: C.2. Factors affecting allowability of cost. C.3. Reasonable costs. C.4. Allocable costs. J. General Provisions for Selected Items of Cost OMB Circular A-110: Subpart C, __.23. Cost sharing or matching. UNH Policy on Program Income on Externally Sponsored Programs Administrative Responsibility: UNH Vice President for Research Effective Date: 7/1/95; revised 12/14/98 and 5/30/07