Cost Share Angela Horton and Jean Benefiel. Wake Forest Baptist Medical Center What is Cost Share?...

Cost ShareAngela Horton and Jean Benefiel

Wake Forest Baptist Medical Center

What is Cost Share?

• Specific portion of project costs related to sponsored programs that are not provided by the sponsor

• Typically direct costs that would otherwise be charged to the grant

• In rare instances, can also be F&A costs (requires Dean’s office approval)

Wake Forest Baptist Medical Center

When to Cost Share?

• NEVER!

• Or, when REQUIRED by sponsor

Wake Forest Baptist Medical Center

Types of Cost Share

• Mandatory

• Costs required by terms of award or by federal statue & WFUHS must contribute in order to get award

• Voluntary Committed

• Costs identified within the proposal, but not requested from the sponsor

• Voluntary Uncommitted

• Cost not funded by sponsor that was not identified in proposal nor required by sponsor

• Not tracked

Wake Forest Baptist Medical Center

Allowable Costs

• Allowed on Award = Allowed for Cost Share

• Verifiable

• Not charged to another award

• Necessary to accomplish project objectives

• Allowable under cost principles

• Budgeted, if required

Wake Forest Baptist Medical Center

Unallowable Costs

• Funded by another award

• Included in F&A Rate

• Building/equipment depreciation

• Utilities

• Department administration charges

• Double counting

• Costs can only be cost shared on one project

• Expenses related to two or more projects must be pro-rated

• Costs outside the project period

Wake Forest Baptist Medical Center

Unallowable Costs (cont.)

• Costs not related to award objectives

• Costs not allowable under OMB Circular A-21

• Alcohol, entertainment, advertising, memberships, etc.

• Salary in Excess of Regulatory Salary Cap

Wake Forest Baptist Medical Center

Documenting Cost Share

• Cost Share Form

• http://brsa.wakehealth.edu/forms/cname/sponsored%20programs

• Complete with proposal

• Must supply unrestricted chart field that will be charged

• If salary is cost shared, faculty must properly certify effort to project chart field (not cost share chart field)

Wake Forest Baptist Medical Center

Cost Share Impact - Institution

• Cost Sharing has a detrimental impact on F&A rate calculation

• Increases Organized Research Base which leads to a lower approved F&A rate and lower F&A reimbursement

Wake Forest Baptist Medical Center

Cost Share Impact - Departments

• Documentation

• Department responsibility

• Expense tracking

• Uses department unrestricted funds

• Record cost share to unrestricted chart field indicated at approval

• Effort Reporting – variance explanations

• Cost sharing salary will create an effort variance that requires explanation either via comment box or post certification follow up

Wake Forest Baptist Medical Center

Cost Share Impact – Departments

• Increases staffing efforts

• Loss of F&A or absorb more indirect costs

• Possible covering of expense if total commitment not achieved

Wake Forest Baptist Medical Center

Questions?

Contact Info:

Angela Horton: 716-1433

Jean Benefiel: 716-8732