Salary Cost Sharing for Departmental Administrators Presentation

Chris G. Green, CPADirector, Sponsored Programs

Topics

• What is Salary Cost Sharing?• Who is responsible?• What are the types of Salary Cost Sharing?• How to identify Salary Cost Sharing.• Effects of Salary Cost Sharing.

What is Salary Cost Sharing?

Salary and fringe benefit costs that are applicable to a specific award which are not borne (paid) for by the sponsor of the award. Often referred to as in-kind or matching contributions.

Example: 20% effort promised on proposal

10% effort charged to award

Who is responsible?

• Shared responsibilities– Principal Investigator– Department Administrator – Department/Institute Chair or Director – Office of Sponsored Programs

Types of Salary Cost Sharing

• Mandatory Sharing Cost sharing - required by sponsor (e.g. DHHS, CPRIT Salary Caps)

• Voluntary Committed Cost share - not required by sponsor, but PI feels it will make proposal look better if included (Commitments in proposals become requirements upon award)

• Voluntary Uncommitted - effort expended in excess of effort commitment (effort over and above what is committed & budgeted on a sponsored agreement. Referred to as VUCS.

How to identify Salary Cost Sharing

At Proposal Submission:

BUDGET JUSTIFICATION (FUNDS REQUESTED FROM NIH)KEY PERSONNELAlbert Ramirez, PI and Director 2.4 calendar months of effort. We request 1.2 calendar months of salary from NIH ($10,000) and the remaining 1.2 calendar months of salary will be covered as in-kind by the institution.

Example of Voluntary Committed Cost share

How to identify Salary Cost Sharing

Investigator had Committed Effort of 34%, was paid 34%; however, Expanded effort of 40% on the project. The 6% effort over and above what was committed is voluntary uncommitted cost sharing.

Note: The second project listed is also an example of VUCS.

Example of Voluntary Uncommitted Cost Share (VUCS)

How to identify Salary Cost Sharing

Investigator had Committed Effort of 10% and Expended effort of 10%; however, no salary was charged to the project.

Note: Most common example of Salary Cost Sharing.

Effects of Salary Cost Sharing

•Salary not borne by sponsored programs are covered by institutional funds (e.g. state and designated funds) •An increase in the Salary Cost Sharing decreases the Health Science Center’s Facilities and Administrative (F&A) rate. •A reduction of F&A cost revenue from sponsored projects reduces the amount of F&A recovery that is provided to each school and other units of the Health Science Center.

Questions about Salary Cost Share?

• Contact Chris Green in OSP at 567-4938 or via email at greenc@uthscsa.edu.