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					                            Cost Sharing Procedures
The University is responsible for financial accounting for all costs attributable to sponsor-
funded projects, including cost sharing. Any quantifiable cost (mandatory or voluntary)
offered in the proposal becomes a legally binding and accountable commitment of the
University upon acceptance of an award.

PIs, department and school officials, and OSP are all responsible for ensuring that
committed cost sharing expenses are allowable under OMB Circulars A21 and A110 and
comply with the terms and conditions of sponsored awards as defined in the University
Cost Sharing Policy.


Cost Sharing at Proposal Submission
If the proposal involves either university cost sharing or sponsored cost sharing, the
department should fill out a Cost Sharing Form and check the “cost sharing” box on the
Dean’s Approval Form for the University Area or on the Proposal Routing Form for the
School of Public Health. Note that the Cost Sharing Form is not required at proposal
stage for HMS proposals.

OSP, FAS RAS, SPA, and OFS are responsible for reviewing and approving proposed
cost sharing and for ensuring that proposed cost sharing commitments are in compliance
with the University Cost Sharing Policy.

Cost Sharing at Award Setup
School or department officials are responsible for preparing the University Cost Sharing
Form and sending it to the submitting office upon receipt of the award notification. The
submitting office will review and approve the University Cost Sharing Form completed
by the school or department before setting up award accounts in GMAS.

For University cost sharing (when non-sponsored funds are used for cost sharing), the
cost sharing account string, also called the “companion account,” should be set up as
soon as the award is activated. The cost sharing companion account uses a non-
sponsored fund number in combination with the activity and sub-activity value from the
sponsored project on which the cost sharing was pledged.

For Sponsored cost sharing (when another grant is used for cost sharing), the cost sharing
account retains its own activity value in GMAS because the current sponsored business
rules do not allow sharing of activity values across funds. These types of cost sharing
commitments must be tracked manually by the school or department managing the
award.

Cost Sharing Reporting and Award Close-out
School and department officials are responsible for regular monitoring of cost sharing
commitments throughout the grant award period and for ensuring that all cost sharing

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transactions are allowable and are coded correctly in the General Ledger. At the end of
the award period, OSP will confirm that the award-related cost sharing obligation has
been fulfilled according to the terms and conditions of the award.

If the sponsor requires cost sharing reporting (either via a separate cost sharing report or
by inclusion of cost sharing data in the financial report), OSP will contact the department
to obtain the following information:

           GL Detail Listing Report from the department for cost sharing transactions
           using sponsored and/or non-sponsored funds for the reporting period.

          For cost sharing indirect costs that are not recorded in the General Ledger,
           OSP will prepare a “Cost Sharing Indirect Cost Calculation Summary Sheet”
           manually and forward it to the school or department for review and signoff.


If the sponsor does not require the reporting of cost sharing, OSP will review the cost
sharing status during the final review of the award prior to the award close out. OSP will:

          Obtain a GL Detail Listing Report from the department for cost sharing
           expenses including sponsored and/or non-sponsored funds for the award
           period.

          Initiate a discussion with school or department officials if the cost sharing
           commitment did not meet the sponsor’s requirement or if cost sharing
           expenses were not in compliance with the University Cost Sharing Policy. In
           the event that cost sharing requirements were not met, if the sponsor does not
           agree to reduce or remove the requirements, the school and/or the department
           will be responsible for any financial loss due to the funding reduction by the
           sponsor.

Cost-shared expenses must be verifiable from the institution’s records, as required by
OMB Circular A-110 Section C23 a (1), regardless of the reporting requirement of the
sponsor. The school or department officials who are responsible for managing the award
should retain cost sharing-related documentation and make it available for audit or other
review.

For indirect cost sharing that is not recorded in the GL, the school or the department must
certify the “Cost Sharing Indirect Cost Calculation Summary Sheet” prepared manually
by OSP and return the form to OSP to be uploaded into GMAS. The certified summary
sheet serves as the “verifiable” cost sharing information in Harvard’s official records.




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posted:10/13/2011
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