Cost SharingCost Sharing

Presented by:

The Division of Sponsored Research

Brian Prindle

November 5, 2010

OverviewOverview

Definition of Cost SharingUF Cost Share Policy Types of Cost SharingWhat’s needed at the time of proposalWhat occurs after the award is madeQuestions and Answers

Definition of Cost SharingDefinition of Cost Sharing

Cost sharing represents thatportion of the total costs of a sponsoredproject paid for by the University,rather than the Sponsor.

Cost sharing is also known as Matching or Contributions.

$ Example of Cost Sharing$ Example of Cost Sharing

Total Project Costs: $ 200,000

Grant Award: 150,000

University’s Contribution: $ 50,000

Three Types of Cost Sharing by Policy

UF Cost Sharing PolicyUF Cost Sharing PolicyIt is the policy of the University that only mandatory cost sharing be submitted to sponsoring agencies.

This policy does not preclude exceptions that may be judged appropriate under certain circumstances to leverage a project. Mandatory cost sharing requirements are usually defined by law, statute, agency regulations, or written in the application guidelines for a specific program.

When there is mandatory cost sharing a copy of the request for proposal (RFP), regulations or guidelines must be submitted with the proposal along with a written commitment from the individual authorized to commit the resources.

All non-mandatory or voluntary committed cost sharing being offered to the sponsor in a proposal must be reviewed and committed in writing by the College Dean (without delegation) and forwarded with the proposal to the Division of Sponsored Research (DSR) for approval by authorized institutional representative.

DSR Proposal Processing DSR Proposal Processing RequirementsRequirements

Mandatory cost sharing – by policyMandatory cost sharing – by policy

1. Backup showing agency requirements

2. Written approval from individual authorized to commit the resources

DSR Proposal Proposal DSR Proposal Proposal RequirementsRequirements

Voluntary Committed cost sharing – by Voluntary Committed cost sharing – by policypolicy

1. Written approval from the Dean

DSR Proposal Processing DSR Proposal Processing RequirementsRequirements

Voluntary Uncommitted cost sharing – by Voluntary Uncommitted cost sharing – by policypolicy

Nothing - there is no cost sharing being presented to the sponsor in the proposal.

Cost Sharing Must meet the Cost Sharing Must meet the following criteria:following criteria:

Verifiable from University Records

Must be for allowable direct or indirect costs

Timely and accurately charged/accounted for

If Federal, must be for Allowable Costs, following OMB Circular A-21 – our cost principles and sponsor guidelines

Cost Sharing Must meet the Cost Sharing Must meet the following criteria:following criteria:

May not come from a Federal

Grant/Contract

Cost Sharing dollars may only be used once

If from a non-Federal grant we need Sponsor permission

To determine if Allowable:To determine if Allowable:

Ask yourself, “Would I be allowed to pay for

the expenditure directly from the grant?”

If YES, then you may use the cost as cost sharing.

If NO, you cannot use the cost as cost sharing.

Allowable Types of Cost Sharing Allowable Types of Cost Sharing

Q: What types of costs may be Cost Shared?

A: Your traditional direct costs such as salary, fringe, equipment, lab supplies, travel.

The associated F&A (indirect costs) for the direct costs being cost shared, if allowed by the agency.

Unrecovered F&A costs may also be used if allowed by the agency.

UnAllowable Types of Cost UnAllowable Types of Cost Sharing Sharing

Q: What types of costs may NOT be Cost Shared?

A: Costs that are not typically charged directly to

grants; clerical supportoffice suppliesbuilding operation costscontribution of spaceexcess of regulatory

salary capsOMB Circular A-21

unallowables

At the Time of AwardAt the Time of Award

DSR Accepts the Award. The eNOA is distributed to the PI, Dept, and C&G Accounting.

The eNOA reflects the required Cost Sharing that needs to be tracked and accounted for.

After Award is AcceptedAfter Award is Accepted C&G receives the eNOA

Required cost sharing amount (Mandatory and/or Voluntary Committed) is entered into the University’s tracking system (Peoplesoft Project Resource)

Cost Sharing reports are available to monitor progress toward meeting the required cost sharing amount

The MyUFL Project Summary Page includes a link to run a Cost Sharing Report

Instructions to Run Reports – DSR Awards Website

MyUFL Project MyUFL Project Summary PageSummary Page

After Award is AcceptedAfter Award is Accepted

PI or Dept Grants Specialist need to inform dept staff of cost sharing requirements.

1.Salaries are cost shared through the Effort Tracking System (“Loaned” and “Borrowed” effort) – Notify the effort approvers in your department to designate Cost Sharing % in Effort Tracking System

2.Non-Salary cost sharing is a manual entry - Notify the C&G Accounting Specialist assigned to your grant and provide the required certification.

Cost Share ReportCost Share Report

Certification Statement for Certification Statement for Manual EntriesManual Entries

For all manual cost share entries Dept must provide C&G Accounting a signed certification statement on the document as follows:

"This is to certify a cost sharing contribution in the amount of $__________to project #__________. This cost has not been used as cost sharing for any other project.“

Sign & dated

After Award is AcceptedAfter Award is Accepted

Salary cost sharing is updated after each Effort Tracking term closes

Update as needed for all salary and non-salary manual entries

Cost Sharing RemindersCost Sharing Reminders

Meet timely during the awarded budget period. Do not wait until the end of the project to account for cost sharing.

Use unrestricted sources; (state funds, overhead, misc donors projects).

Allowable Expenditures.

Subject to Cost Accounting Standards for Federal awards.

Cost Sharing RemindersCost Sharing Reminders

Reduction of Cost Sharing; Consult with DSR’s Award Adminstration Office.

C&G offices monitor for internal reporting, external reporting, and invoicing requirements.

C&G cannot close a project until all cost sharing is accounted for.

Cost Sharing is Subject to Audit.

The FutureThe Future

Contact InformationContact Information

For cost sharing questions relating to proposals

Judy HarrisDSR Proposal Processing392-1582jaharris@ufl.edu

Contact InformationContact Information

For questions regarding the amount of cost sharing required (after award is accepted)

Dee Dee TeelDSR Award Administration392-1582vd2t@ufl.edu

Contact InformationContact Information

For questions regarding how to account for or report cost sharing contact Contracts and Grants Accounting:

392-1235 C&G Main 392-2356 C&G @ IFAS 392-6626 C&G @ Engineering

Questions ?Questions ?

COST ACCOUNTING

STANDARDS presented by

the Division of Sponsored Research

Brian Prindle

November 5, 2010

UF Research Numbers at a Glance

First Grant in 1946

FY-09/10 $678 M

Federal Funds $487 M

Federal ARRA Funds: $77 M

Active Projects: 7000

Different Sponsors: 1000

UF RESEARCH AT A GLANCE FY09/10

Federal Federal = = 72% 72%

State/Local State/Local = = 10%10%

FoundationsFoundations= = 10%10%

Industry Industry = = 6%6%

Other Other = = 2%2%

CAS & THE FEDERAL PERSPECTIVE

In the early 90’s conversations were brewing

Resulting in the a perception that University’s were being Paid Twice for the Same Thing.

How could that be?

University’s were expected to use earned indirects to pay for Facilities and Administration (F&A). UF’s F&A rate is currently 46.5%

If Administration is paid for with F&A dollars, then University’s should NOT be charging administrative costs again as a Direct Charge.

1996 CAS was Implemeted Office of Management & Budget Implemented

Through OMB Circular-A21, our Allowable Costs Principles

Federal Agency’s Comply

University’s Comply

Auditor’s Audit

A-21 UF CAS Policies

AUDITORS

Talking About CAS

The Blank Wall

The PI Says So!Silence

Defiance

Who Says?

Sinc

e Whe

n?

Prove it!

Are You Kidding?

Ignore

The Sponsor Approved It

Faculty (PI)

Department Chairs

Dean’s

Dept & College Grant Administrators

Division of Sponsored Research

Contracts & Grants Accounting

Auditors

UNIVERSITY OF FLORIDA CAS TEAM

Who is Responsible?

WHAT DOES UF CAS POLICY SAY?

•Only Applies to Federally Funded projects where indirect costs are not prohibited.

•We follow OMB Circular A-21.

•We will charge project expenses consistently in like circumstances.

• Meaning either as a Direct or Indirect charge.

UF CAS POLICY is Clear

The following cost items are normally INDIRECT and are not charged DIRECTLY to federally funded Projects:

Clerical, Administrative, or Secretarial Job Codes (see list)

Postage (794000)

Office Supplies - General (732100)

Computer Supplies (734100)

General Computer Software(734200)

Memberships (791000)

Subscriptions (791100)

Local/Basic Telephone (722100,722120,722130,722140,722200)

COST ACCOUNTING STANDARDS

http://fa.ufl.edu/cg/capolicy/jobcodes.asp

(Partial List)

CAS Policy Does Allow Exemptions for Unlike Circumstances

For example A PENCIL

Normally a GENERAL OFFICE SUPPLY and is considered an indirect cost.

But can it be a Direct Charge?

Maybe, if there is an unlike circumstance.

1. A pencil might be a direct charge if the pencil is part of a training packet being distributed with other training materials to participants attending a training program which is funded by a federal grant.

2. A pencil might become direct charge when a scientist is studying the lead composition of a number 1, 2 & 3 pencil and performing research activities on the pencil to demonstrate scientific attributes or prove technical theories.

What should be done to allow this normally indirect item be charged as direct?

Process a Request for a CAS Exemption.

A Pencil’s Unlike Circumstance

QUESTION:

What is the Process to allow a normally indirect cost be charged Directly to a federally funded project?

CAS ExemptionForm

Use this form to request a normally indirect cost to be a direct direct charge.http://rgp.ufl.edu/research/forms.html

ANSWER:

Prepare a CAS Exemption Request Form

Present the unlike circumstance of the project

Provide the details of what the administrative positions will be doing that are directly related to advancing the work of the project.

Provide the details of why the expense items are need and are above the routine levels provided by the department.

Submit to DSR Award Administration Office

Question: What happens when the CAS Exemption

Form is Approved by DSR?

Answer:DSR will distribute the approved CAS form to C&G Accounting, PI, Dept – by email.

C&G uploads the Exemptions into the accounting system and by email lets us know the accounts are available for use.

How may I clear a CAS Violation?

Transfer cost to an appropriate cost center or account following the new cost transfer procedures.

Or if you do believe you have an unlike circumstance

Prepare “CAS Exemption Form” and submit to DSR for review and approval

For additional information on CAS and other Cost Accounting Policies

UF Cost Accounting Policieshttp://fa.ufl.edu/cg/capolicy/

DSR Researcher’s Handbookhttp://rgp.ufl.edu/research/handbook/

researcher_handbook/

CAS ContactsDivision of Sponsored Research

(352) 392-1582 (Brian Prindle)

Contracts & Grants:

(352) 392-1235 (Bill Gair is the C&G contact for

CAS)

Any Questions before the

Test

SAMPLE EXPLANATIONS

HOW WOULD YOU VOTE:

YES or NO!Program Assistant (Clerical): Mr. Smith obtained the required security clearance from the DOD & serves as the security officer for this classified contract. A security clearance officer is a requirement of this DOD grant as the data provided & developed under this contract are classified and must be handled as such.

General office supplies are needed for the grant because if we did not have the grant we would not have to use additional supplies such as paper or pencils.

Local Telephone: The administration of the Minority Teacher Training Program requires maintaining contact with over 700 scholars across the state of Florida. The telephone is used during recruitment, registration & for retention purposes for program participants. This is a dedicated telephone line.

OPS: The OPS student works in the lab performing analytical chemistry and enzyme assays as described in the specific aims of the grant.

Office supplies are used in the recruitment of infant subjects. Parents of all infants born in Gainesville are sent a letter describing the project and asked to return an enclosed postcard if they are interested in participating. Costs include stationery, envelopes, business reply cards and postage for letters and return postcards.

In order to prepare for a workshop & the production of the training manual, large amounts of copying & paper will be necessary. (We anticipate 50 participants and each manual is about 50 pages.) The workshop and manual are the specific goal of this grant & are printed in the Department.

Data analysis on this project is conducted on a PC using Excel and the budget includes funds for computer supplies.

Computer supplies and software are requested as this project uses the computer to analyze the center’s research data.

Thank You!