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

 Will be identified in the Request For
  Proposals (RFP)
 Required by the agency for the award to be
 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
 Voluntary committed cost sharing should be
  minimized at all times and is discouraged as it can
  lower OHSU’s F&A rate

Voluntary Uncommitted Cost Sharing
  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:
  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
  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 -
                 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

          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:
         The Basics


 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

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
 Institutions must be able to document the
  distribution of charges using an acceptable
 Failure to comply with A-21 can have very
  serious consequences

The Effort Certification system:
  Documents effort expended on federally sponsored
  Shows costs associated with various university
  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

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
In absence of salary support on a
 project, the department can create an
 ECS to reflect mandatory or committed
                  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
 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
It is always appropriate for a PI to sign
 statements for employees on her/his
                          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
                     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
               Supporting Documentation

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


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