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									        Cost Sharing
                   James Trotter
      Quality Standards Manager
Sponsored Projects Administration
                   What is Cost Sharing?

Cost sharing is sometimes referred to
 as “matching” or “in kind”
Cost sharing is defined as that portion
 of the total costs of a sponsored project
 or program not borne by the sponsor
                      Types of Cost Sharing

 Committed
  Mandatory
  Voluntary
 Uncommitted
  Voluntary (VUCS)
 When Cost Sharing consists of effort, any of
  these three types should be identified and
  accounted for on effort certification
  statements
                   Mandatory Cost Sharing

 Will be identified in the Request For
  Proposals (RFP)
 Required by the agency for the award to be
  given
 Will be identified in the award documents
 Must be reported to the sponsor in the
  financial report
 Must be accounted for on Effort Certification
  Statements as committed C/S—it has been
  committed to the project
                           Voluntary Committed
 Voluntary Committed Cost Sharing is not explicitly
  required by the sponsoring agency but has been
  offered by the PI and OHSU in the application,
  proposal budget, or budget justification
 This commitment becomes binding once it is offered
  and the grant or contract has been awarded
 It must be accounted for in the Effort Certification
  process
 Voluntary committed cost sharing should be
  minimized at all times and is discouraged as it can
  lower OHSU’s F&A rate
                                         VUCS

Voluntary Uncommitted Cost Sharing
 (VUCS)
  Not explicitly required on a program and over and
   above that which is offered in an application
  Internal agreement between the PI and OHSU
  Not reported to the sponsor
  Does not become part of our “research base” and
   has no impact on OHSU’s F&A rate
  Still should be captured in the Effort Certification
   process as Uncommittted C/S
               Examples of C/S Expenses

Some examples of expenses that can
 be used to satisfy the cost sharing
 requirements are:
  Effort
  Supplies or equipment contributed to the
   project by the institution
  Services or supplies donated by a third party
  Reduced or waived F&A rates
                         C/S Requirements

Costs used for committed C/S must be:
  Allowable per sponsor guidelines
  Verifiable
  Incurred within the project period
  Provide a direct benefit to the project to
   which it applies
                  Effort as Cost Sharing

Committed effort on a sponsored project
 can be considered Cost Sharing
If mandatory or voluntary committed,
 Cost Sharing must be tracked and
 reported, and it then becomes part of
 our “research base”
                 OGA and Cost Sharing

Awards with mandatory or voluntary
 committed cost sharing will have a Cost
 Sharing account set up in OGA
Must provide a Cost Sharing account,
 usually a departmental general fund, at
 time of award
              OGA Numbering System

Separate Cost Sharing accounts are set
 up in OGA using the following
 numbering system:
1st year of the award -
 GXXXX0001ACS
                 Numbering System (cont.)

 2nd year of the award - GXXXX0001BCS
 If the main account stays an “A“ throughout
  the competitive segment, the Cost Sharing
  account will also stay an “ACS“
 Multiple cost sharing accounts will be set up if
  more than one general fund is provided
  Cost Sharing


Questions?
          Effort Issues

                   James Trotter
      Quality Standards Manager
Sponsored Projects Administration
                      Procedure Online

The full text of OHSU’s Effort
 Certification Procedure is available on
 the SPA website:
 http://www.ohsu.edu/research/rda/spa/d
 ocs/effortcertproc.pdf
         The Basics

Who?
Why?
What?
When?
How?
                                    Who?

 An employee is required to complete an Effort
  Certification Statement if…
 Activity is partially or totally devoted to a
  sponsored agreement (federal grant, contract
  or cooperative agreement, or federal money
  from a pass-through entity)
 AND, pay is partially or totally paid from such
  an agreement, or represents cost sharing
                           Who Else?

 Deans, Directors, Department Chairs,
  and Division Heads must ensure that
  administrators, investigators, and
  employees in their units know,
  understand, and abide by Effort
  Reporting policy and procedures
 Principal Investigators (PIs) must
  understand and abide by Effort Reporting
  policy and procedures
                            And Who Else?

 Departmental Effort Coordinators are
  generally responsible for the distribution,
  collection, and return of Effort Certification
  Statements to Sponsored Projects
  Administration (SPA)
 SPA is responsible for creation, distribution,
  and collection of Effort Certification
  Statements and for maintenance of the Effort
  Reporting system
                             Why?

OHSU’s Effort Certification system was
 developed in direct response to the
 Office of Management and Budget
 (OMB) Circular A-21
A-21 addresses “principles for
 determining costs applicable to grants,
 contracts, and other agreements with
 educational institutions”
                                More Why?

 A-21 aims to ensure that the Federal
  Government bears its fair share of total costs
 The policies and provisions in A-21 are
  mandatory for institutions that receive federal
  funds
 Institutions must be able to document the
  distribution of charges using an acceptable
  method
 Failure to comply with A-21 can have very
  serious consequences
                                       What?

The Effort Certification system:
  Documents effort expended on federally sponsored
   projects
  Shows costs associated with various university
   activities
  Provides data to help develop the university’s
   Facilities & Administrative (F&A) rates
  Provides data for various management reports
  Documents labor cost sharing on sponsored projects
                           More What?

Certification is the assertion, by an
 employee or a responsible official with
 suitable means of verification, that labor
 charges accurately reflect effort
 expended over the certification period
                             When?

OHSU Effort Certification Statements
 are processed semi-annually for all
 applicable employees
Effort Certification Packets are
 distributed to Departmental Effort
 Coordinators approximately 30 days
 after the end of the effort period
                 Cost Sharing on Effort
                      Statements
In absence of salary support on a
 project, the department can create an
 ECS to reflect mandatory or committed
 C/S:
 http://www.ohsu.edu/research/rda/spa/d
 ocs/ldesctemp.pdf
                  When and How Soon?

Departments have 35 business days
 from the receipt of Effort Certification
 materials to distribute, complete, collect,
 and return all Effort Certification
 Statements to Sponsored Projects
 Administration (SPA)
Failure to meet the deadline will trigger
 various escalating “reminders”
Normal Certification
Removing Suspense
Hand Correction
Cost Sharing
                               And How?

 Effort Certification Statement should be
  signed by the employee
 Otherwise, the Statement may be signed by a
  person with suitable means of verification—
  such as the PI or the employee’s direct
  supervisor
 In order to sign, the certifier needs direct
  knowledge of the employee’s effort
                            How Else?

It is generally inappropriate for a
 Departmental Effort Coordinator or a
 Department Chair to sign all of the Effort
 Certification Statements in the unit or
 department
It is always appropriate for a PI to sign
 statements for employees on her/his
 projects
                          How High?

NIH prohibits employees from receiving
 a salary greater than the established
 cap (currently $191,300 annually)
Any amount above this cap must be
 considered as Cost Sharing and
 charged to the appropriate non-federal
 account
                     Better Think Twice!

What do I do if an Effort Certification
 Statement must be amended?
Make changes by hand and submit the
 amended Effort Certification Statement
 with all supporting documentation
 attached
               Supporting Documentation

SPA Labor Cost Transfer Approval
 Form
Written justification for change in effort
Signed by PI
Signed by department/institute head;
 (Dean if this is also PI)
 Effort Reporting


Questions?

								
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