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    Cost Sharing And Matching Funds
    Cost Sharing

Cost Sharing on research grants and contracts is that portion of project costs that the grantee (institution) contributes in the form of direct or indirect costs or project costs not borne by the sponsor. Cost sharing is accomplished through project costs funded by the University (faculty salaries, fringe, travel, supplies, etc.), project costs funded from other sponsored agreements, or in-kind contributions donated by third parties (equipment, supplies, etc.). Cost sharing may consist of direct expenses, such as faculty effort, lab supplies, equipment, and travel. Many sponsors believe it is appropriate for the institution to pay part of the costs of a project. Mandatory cost sharing may be required by the sponsor as a condition of the award. Voluntary cost sharing is that which is not required by the sponsor but is nevertheless offered in the proposal by the investigator. Some federal agencies require grantee institutions to provide a portion of the total costs of a project from nonfederal sources.

Cost sharing is normally negotiated with a sponsor during the pre-award phase following acceptance of a proposal.  A Principal Investigator may offer, at the application stage, to cost share at rates in excess of that required, but caution should be exercised regarding the nature and extent of cost sharing offered as it becomes a condition of the award.

Matching Funds

Matching funds are the portion of project costs that, as a condition of the award, the grantee agrees to provide in cash and in-kind contributions derived from the University or third party institutions, organizations, or individuals. Matching requirements are normally stated in a sponsor's program announcement and are not negotiable. Contributions must be from nonfederal sources when required in a project sponsored by the federal government and must be allowable under applicable cost principles. Sponsor guidelines and program announcements should be consulted to ensure that certain categories are not excluded on specific projects or types of programs.  

It is the responsibility of the operating locations, in conjunction with the Principal Investigator, to determine the contributions to be provided on each project and to meet this requirement in a manner consistent with sponsor and University policies. The Principal Investigator must initiate the request and it must be endorsed through the regular University channels (Chair, Director, Dean, and/or Provost). Final approval of all such funds rests with the Vice President for Academic Affairs and the Vice President for Finance and Treasurer.

Accounting for Cost Sharing and Matching Funds

The institution is responsible for maintaining  accurate records for all contributions to sponsored programs and for ensuring that sponsor  financial reporting requirements are met. To accomplish this, the University must maintain data to substantiate the contributions required by the terms of the award. It should be noted that no services or personnel being supported by Federal funds can be used to match other Federal cost sharing or matching requirements. Occasionally this prohibition will extend to state programs supported completely or in part by Federal funds. As a rule, the University requests that cost sharing/matching be limited to the sponsor's requirements, as these require a burdensome and costly paper trail to fulfill the reporting requirements. It should also be noted that the use of funding from third party institutions, organizations, or individuals often require prior approval of the funding organization before their support can be identified to another agency as cost sharing or matching. All such commitments should be discusses with and approved by the University Office of Sponsored Research or the Office of Corporate and Foundation Relations before they are identified in a specific proposal as project support.

Office of Sponsored Research
Bush Brown Hall
/University Center
700 Northern Boulevard
Brookville, NY 11548