Cost sharing on a sponsored program is when the institution agrees to fund a portion of the project with its own funds or with funds from a third source.
Some important points in the government’s cost sharing policy are listed below:
- Consistent with OMB Circular A-110, cost sharing is synonymous with the term “matching;”
- Cost sharing should be used with reference only to quantifiable and auditable contributions from non-federal supported activities;
- In the case of in-kind contributions, a quantifiable and auditable value must be established;
- Required cost sharing is an eligibility criterion, not a review criterion
- Unless a program solicitation specifically requires cost sharing, proposers should not include cost sharing amounts in the budget, and should not exceed the level or amount specified in the solicitation.
Cost sharing or matching on any sponsored project could be very costly and must be carefully evaluated before committing the college’s resources. Therefore, any cost sharing or matching requirements should be approved by the Provost and the Vice President of Finance before any faculty member begins the proposal process.