Cost sharing on a sponsored program is a contribution to the cost of the project not funded by the sponsor. Direct cost sharing refers to funds expended by the University on behalf of a sponsored project and includes personnel, equipment, and supplies. Mandatory cost sharing is required to be reported on the financial reports and to be supported through the accounting records.
Identification of the source of cost sharing is to be made at the time the proposal is submitted. Cost sharing/match accounts are to be set up for each grant as required and used to charge the cost sharing expense. These accounts should be established at the time the award is received and set up in the University’s KFS system.
A periodic review of the financial statements will ensure that cost sharing commitments are being met and that unrestricted funds to cover the cost share commitment have been transferred in a timely manner to the cost sharing/match accounts. Transfers from unrestricted accounts to the cost sharing accounts should be made in the fiscal year in which the costs are to be incurred.
Types of Cost Sharing
Typical examples of cost sharing include the percentage of personnel effort to be expended on the project; associated employee benefits; Graduate Research Assistant Tuition and un-recovered indirect costs. Costs incurred prior to the award are not allowable matches. Program income earned under an award may not count as cost sharing unless authorized by the sponsor.
Cash contributions are sources of funds from either internal or external sources. University cost sharing is considered cash, as it can be accounted for from the University’s records. In-Kind contributions are non-cash contributions typically provided from outside sources such as donations of equipment, sub-contractors of time or facilities, or volunteer services.
For more information, see the University of Connecticut’s Cost Sharing Policy.