Cost Sharing | LSU Sponsored Program Accounting

Cost Sharing and Matching on Sponsored Projects

FASOP: AS-06

 

Cost sharing and matching are defined as that portion of sponsored project costs not borne by the project's sponsor.  Cost sharing should only be included when required by the sponsor or approved by the Vice President for Research and Economic Development. When the University shares in the costs of a sponsored project, it generally does so by committing the effort of university personnel to a project without charging the project for those costs.

The UG requires that all cost sharing and matching on sponsored projects be properly documented in the University's accounting records.

SPA will establish a separate grant for each source of funds provided. All spend should occur on the grant established expressly for that portion of the cost sharing.  To request a cost sharing grant, the appropriate form must be completed.  Cost Sharing forms can be found on the SPA website:

 

Types of Cost Sharing

  • Personnel costs must be documented on the award grant line in order to qualify as cost sharing.  (Note:  Any University employee who spends 5% or more of their time on a specific sponsored project should have that portion of their salary charged directly to the sponsored project. If budgeted as cost sharing, the effort should be cost shared to the sponsored project.)
  • Non-personnel costs used as cost sharing or matching must be documented in a separate award line created for that purpose.  It can be the same line as salary if the same source of funds. Allowability of costs incurred to meet matching requirements will be determined by the terms and conditions of the award document.
  • SPA will automatically add the related FB and F&A costs when reporting cost sharing expenditures to the sponsoring agency
  • Equipment should not be offered as cost sharing unless receipt of the award is contingent upon such cost sharing.
  • Other sponsored agreements may be used as cost sharing or matching if written approval is obtained from each sponsor. If the cost sharing award is fixed price, SPA must classify it as CR if it is cost sharing to a CR award.
  • In-kind contributions (e.g., equipment, supplies, personnel) from third parties may also be committed as cost sharing or matching if the value of such contributions can be properly documented.  The preferred method of documentation requires the contributor to submit signed and pre-numbered invoices indicating the amount due is zero to the PI who approves and forwards each invoice to SPA. The AS 560: Certification of In-Kind Cost Sharing may also be used.
  • Unrecovered F&A costs may be included as part of cost sharing or matching funds only with prior approval of the sponsor. Unrecovered F&A costs are the difference between the fully negotiated F&A rate and the rate allowed to be charged to the sponsored project.

 

Cost Sharing Documentation

  • The PI of a sponsored project is responsible for documenting the matching or cost sharing commitment for the project or coordinating such documentation during the project period through their department chair.
  • In order to use funds as cost sharing or matching to a sponsored project, the function must match the function of the sponsored project.  Thus, sponsored research projects must be matched by research funds, training projects by instruction funds, and public service projects by public service funds.  Non-federally funded restricted accounts may also be used to satisfy a cost sharing obligation in a like function.
  • Cost sharing or matching funds must be expended within the project period of the sponsored agreement which they support.
  • Funds can only be cost shared to one project.
  • Generally, sponsor funds and cost sharing funds should be spent at the same rate throughout the project period.  For example, when 10% of the sponsor funds have been expended, approximately 10% of the cost sharing funds should have also been spent.