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Commitments

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  • pg 1
									             What is cost sharing?

• UW Definition: “Cost sharing is the portion of total costs of a
  sponsored project that is borne by the UW, rather than the
  sponsor.”




                                                  Office of Extramural Support
                                                                    Slide 1
        Three Types of Cost Sharing

Mandatory                   Mandatory; required by the Sponsor



                                          Unavoidable
                Examples: NIH Salary Cap cost sharing, PI’s minimum 1%


 Voluntary            Critical to support the research enterprise
                Example: Small awards where PI’s salary would be too great a
                portion of the awarded amount

                                   Offered “just because”


Institutional     Institutional
                                                          Office of Extramural Support
                                                                               Slide 2
               Problem Statement
• As an institution, we often do not meet our objectives
• Breakdowns occur at every point of the process and lead to:
   – Excessive voluntary committed cost sharing
   – Failure to fulfill our commitments or prove that we’ve done so
   – Incomplete, incorrect, and inconsistent information in tracking
     systems
   – A risk of negative audit outcomes
   – A reduced F&A rate
   – Thousands of person-hours spent on reactive problem-solving every
     year
• Faculty and staff are confused and frustrated

                                                       Office of Extramural Support
                                                                         Slide 3
                    Observations

• The amount, nature and impact of the UW’s cost sharing data
  is incomplete and indeterminate.
• The current situation offers no definitions, roles,
  responsibilities, policies, or procedures which causes the
  inconsistencies, frustrations and breakdowns we witnessed
• The large amount of variation within the process showed us
  the objective of this project is not to increase throughput or
  reduce processing time, but to reduce the variation




                                                 Office of Extramural Support
                                                                   Slide 4
Cost Sharing Policy




                      Office of Extramural Support
                                        Slide 5
              Cost Sharing Policy

• Generally, UW’s policy is to minimize institutional and 3rd
  party cost sharing on sponsored projects
• Approval of voluntary committed cost sharing rests with the
  Dean’s or Director’s office
• Allowed when mandated or necessary to reflect accurately
  the resources that must be expended to accomplish the
  project objectives.
• Each Division may have their own requirements in addition to
  this policy.



                                                Office of Extramural Support
                                                                  Slide 6
              Cost Sharing Policy

• Researchers who engage in sponsored projects will:
   • Comply with University and sponsoring agency regulations
     regarding proposing, charging, and reporting of cost
     sharing.
   • Policy applies to both federal and non-federal sponsored
     projects.




                                               Office of Extramural Support
                                                                 Slide 7
             Cost Sharing Policy

• Who approves cost sharing?
  • Dean’s/Director’s Office




                                   Office of Extramural Support
                                                     Slide 8
                Cost Sharing Policy

• What are the cost sharing impacts?
   • Institution redirects resources to support specific scientific project
     beyond the funding level provided by the sponsor.
   • Potential limitations to programmatic, administrative and financial
     capabilities to the researcher and University
   • Reduces flexibility of researchers to conduct other research by
     obligating effort
   • Increasing requirements for capturing, monitoring and documenting
     commitments and expenditures
   • Decreases the University’s recovery of indirect costs




                                                          Office of Extramural Support
                                                                            Slide 9
Cost Sharing Guidance




                   Office of Extramural Support
                                    Slide 10
            Cost Sharing Guidance

• When is it appropriate to offer voluntary cost share?
   • To meet OMB requirements for minimum commitment of PI effort on
     sponsored projects (1% minimum at UW)
   • To support investigator on an award for which the total direct costs
     are a small dollar amount
   • To respond to clear indication from the sponsor that cost sharing will
     increase competitiveness of a specific proposal
   • To establish an institutional commitment for certain federal agencies
     (NEH, NEA) that use cost sharing to demonstrate the leveraging effect
     of federal funding




                                                         Office of Extramural Support
                                                                          Slide 11
            Cost Sharing Guidance

• When is it appropriate to offer voluntary cost share?
   • To provide institutional support for a project that is significant in
     scope and vital to the campus mission
   • To support an institutional investment in a pioneering project with
     potential significant future sponsored funding
   • To secure sponsored funding for an individual or department in a
     research discipline in which access to extramural funding is inherently
     limited




                                                          Office of Extramural Support
                                                                           Slide 12
            Cost Sharing Guidance

• What are alternatives to voluntary cost sharing?
   • Offer resources without making a specific and quantifiable
     commitment.
   • Limit number of explicit commitments
      • Ex: “PI X will oversee all aspects of the project. University
         resources are available as needed for the performance of the
         sponsored project at no direct cost to the project”




                                                        Office of Extramural Support
                                                                         Slide 13
            Cost Sharing Guidance

• What should be offered to meet a cost sharing requirement?
   • Consider two criteria:
      • Is there a new cost to the university?
      • Is there a significant burden for documentation or audit?




                                                        Office of Extramural Support
                                                                         Slide 14
             Cost Sharing Guidance

• Preferred mechanisms for cost sharing
   •   UW salaries and fringe benefits
   •   F&A costs associated with any cost shared direct expense
   •   Unrecovered F&A costs due to a lowered or waived F&A rate
   •   Third party cash contributions




                                                        Office of Extramural Support
                                                                         Slide 15
            Cost Sharing Guidance

• Acceptable, but not preferred mechanisms for cost sharing
   • Purchase price of equipment being acquired by the UW
   • Travel expenses
   • Tuition or tuition remission
   • Supplies
   • Volunteer effort, whether coordinated by the university or a third
     party
   • In-kind contributions from non-UW third parties




                                                         Office of Extramural Support
                                                                          Slide 16
Cost Sharing Key Ideas for Dean’s
             Offices




                           Office of Extramural Support
                                            Slide 17
 Cost Sharing: Key Ideas for Dean’s Offices

• Cost sharing may be required, but there are drawbacks for the
  university and PI.
• University seeks to minimize cost sharing when possible
• Voluntary committed cost sharing is discouraged. Although,
  there may be instances where it’s appropriate.
• There are alternatives to voluntary committed cost sharing.
• Cost sharing should be reviewed at the time of proposal
  submission or when a change is made. Final approval of cost
  sharing resides with the Dean or Director.


                                                Office of Extramural Support
                                                                 Slide 18
 Cost Sharing: Key Ideas for Dean’s Offices

• If cost sharing must be approved, preferred mechanisms are
  based on: a) is there a new cost to the university? and b) is
  there a significant burden for documentation or audit?
• All cost sharing contributions should be explicitly identified in
  the proposal budget
• The PI is expected to identify cost sharing items, identifying a
  funding source for each, and seek approval for cost sharing via
  the Dean’s or Director’s office
• Colleges/Schools may wish to create forms and formal
  processes for submitting and reviewing requests to cost share.

                                                   Office of Extramural Support
                                                                    Slide 19
Cost Sharing Key Ideas for PIs




                         Office of Extramural Support
                                          Slide 20
     Cost Sharing: Key Ideas for PIs

• Minimize cost sharing when possible.
• Cost sharing regulations derived from OMB Circulars.
  Standards apply to federal and non-federal sponsored
  projects.
• Non-compliance brings risk of penalties, up to suspension or
  termination of awards.
• Voluntary committed cost sharing is discouraged, unless
  appropriate.
• Alternatives to voluntary committed cost sharing exist.

                                                 Office of Extramural Support
                                                                  Slide 21
     Cost Sharing: Key Ideas for PIs

• Cost sharing should be reviewed at proposal or when change
  occurs.
• Dean or director makes final approval of cost sharing.
• Cost sharing contributions should be explicitly identified in
  the proposal budget.
• PI should identify cost sharing items and identify a source for
  each prior to seeking approval from the Dean’s or Director’s
  office.
• Cost sharing commitments cannot be changed without prior
  sponsor approval.
                                                   Office of Extramural Support
                                                                    Slide 22
Award Setup




              Office of Extramural Support
                               Slide 23
                      Award Setup
• At award setup, OES will enter information into the Projects tab in
  PeopleSoft Grants
• After setup, this information is visible in WISDM.




                                                    Office of Extramural Support
                                                                     Slide 24
Cost Sharing Documentation




                     Office of Extramural Support
                                      Slide 25
Cost Sharing & Commitment Updates
        Form & Instructions




                          Office of Extramural Support
                                           Slide 26
Managing, tracking, documenting cost sharing

 • For payroll cost sharing, campus will submit form if:
    – Missing rows (i.e., was never scheduled)
    – Corrections to percentage, dates, source funding, etc.
    – Personnel changes

 • For non-payroll, campus will submit form after transaction has
   occurred
 • For third party, campus will submit form for goods and
   services used to meet obligation



                                                           Office of Extramural Support
                                                                            Slide 27
How update forms will be handled

• All forms will be sent to the Office of Extramural
  Support (after all appropriate signatures have been
  obtained)
• Forms will be reviewed and if there are questions,
  Dean’s/Director’s office will be contacted for further
  clarification
• Data will be entered into the cost share bolt-on


                                            Office of Extramural Support
                                                             Slide 28
Monitoring and reporting of cost share

• Accountants will draw information from WISDM for
  invoices and financial reports




                                       Office of Extramural Support
                                                        Slide 29
              Cost Share Example 1
State agency award @ 10%
In-kind personal
3rd party
Unfunded
                            Grant UWEX Match Third Party Match         Total
Salary                      22,390  16,342          2,503             41,235
Fringe Benefits              8,902  6,537           1,469             16,908
Supplies and Expenses        9,618                                     9,618
    Direct Costs Subtotal   40,910  22,879          3,972             67,761
Indirects 10%                4,090                                     4,090
Match indirects                     7,321           1,828              9,149
Unreimbursed indirects              9,000                              9,000
(32% - 10%)
                    Total   45,000    39,200        5,800             90,000



                                                            Office of Extramural Support
                                                                             Slide 30
            Cost Share Example 2
State agency award @ 15%
Unfunded F&A
                                               Grant UWEX Match Total
Salary                                         28,500           28,500
Fringe Benefits (38.5%)                        10,973           10,973
Travel                                          1,000            1,000
Supplies & Expense                              1,000            1,000
Other (copies, telephone, other
                                                500                     500
communication costs)
                       Direct Costs Subtotal   41,973     0           41,973
Nonfederal unreimbursed Indirect Charges
(11% of WCMP request is $4,617 of which          0      2,612          2,612
$2,612 will be used as match)
Indirect Charges (15% of WCMP request)          6,296                  6,296
                                       Total   48,269   2,612         50,881



                                                                Office of Extramural Support
                                                                                 Slide 31
                  Key Comments
• Type of cost share is crucial for set up.
   • If not mandatory, considered voluntary, committed.
   • At time of award, verification from sponsor will be needed.
• If cost share is quantified, will be considered
  “voluntary, committed”.
   • Must be tracked in the cost share system.
   • May have to report if requested by sponsor.
• Deans’/Directors’ effort cannot be included as cost
  share
• UW-Extension does not use the cost share toolkit
  mentioned in the guidelines
                                                   Office of Extramural Support
                                                                    Slide 32
• Questions?




               Office of Extramural Support
                                Slide 33

								
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