University of Minnesota  Procedure

Handling Cost Sharing (including Matching and In-Kind Contributions)

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Questions?

Please use the contact section in the governing policy.

At Time of Proposal

  1. When committing cost sharing in a proposal, the Principal Investigator (PI) is expected to do the following:
    1. Obtain written confirmation from the party(s) providing the funding for the cost sharing and include it with the proposal.
    2. Include the cost sharing in the proposal budget.
    3. Include the following in the budget justification: "If this award is reduced from the requested amount, the proposed cost sharing will be reduced proportionately."
  2. When the PI includes cost sharing in a proposal, the department head is expected to do the following:
    1. Confirm whether cost sharing is required, necessary and appropriate in order for the PI to complete the project and if so identify department funds to meet the cost sharing commitment and provide written confirmation to the PI.

During the Award Period

  1. When the Notice of Grant Award (NOGA) is issued, the PI is expected to do the following:
    1. Review the NOGA to verify the approved level of cost sharing and notify the department administrator and Sponsored Projects Administration Grant and Contract Officer (SPA GCO) if cost sharing isn’t accurately reflected on the NOGA so it can be corrected.
    2. Clarify how they plan to meet the cost sharing commitment with the department administrator so related financial transactions are recorded in the financial system accurately.
  2. If any adjustments need to be made to the cost sharing, the PI is expected to do the following:
    1. Notify the department administrator and SPA GCO so they can confirm if prior approval is required from the sponsor.
      1. If prior approval is required, generate a letter that explains why the change is necessary, obtain department head and collegiate approval, and route the letter to the SPA GCO so they can countersign and submit it to the sponsor.
      2. If prior approval is not necessary, document the reasons for the changes in writing and send copies to SPA GCO and Sponsored Financial Reporting (SFR) accountant for their records.
  3. If the cost sharing is reportable to the sponsor, the PI is expected to do the following prior to the financial report due date:
    1. Ensure that transactions are charged to the appropriate cost share chartfield strings.
    2. Obtain written documentation from any third party providing in-kind funding that shows the related transactions recorded in their financial system and share it with the SFR accountant so they can confirm that the value of the cost sharing are not estimates and does not exceed the actual cost to the third party and then include the details in the financial report.
    3. Ensure that required effort commitments are met.
      1. Per the Administrative Policy: Effort Certification, sponsored awards (unless they fall under an exempt category) should include a minimum of 1% of committed Pl effort during at least one effort cycle per year, recognizing the Pl's scientific and administrative direction of the award. Such effort, if not paid by the sponsor, must be cost shared and designated in a cost sharing chartfield string if it is being used to meet award effort or cost sharing obligations.