Cost Sharing Policy Revised

The University of Kentucky Business Procedures E-50-2 Cost Sharing Policy has been revised. See this pdf: http://www.uky.edu/EVPFA/Controller/files/BPM/E-50-2.pdf. 

Cost sharing on federally funded projects has received much attention in the past few years. The National Science Board released a report in early August which “prescribes a set of recommendations with two primary objectives: (1) to allow, but narrowly circumscribe, the application of mandatory cost sharing requirements in NSF programs in which cost sharing is foundational to achieving programmatic goals, and (2) to prohibit voluntary committed cost sharing in NSF proposals and thus eliminate post-award tracking and reporting requirements associated with such cost sharing.” Locally, we are concerned about cost sharing because it commits university resources, adds to the burden of administering grants and has a negative impact on future F&A rates. Therefore, it is university policy that cost sharing being committed only when required by the agency or in very exceptional situations.

Key changes to UK’s revised policy:

• Stronger language to discourage and prohibit voluntary cost sharing in other than exceptional circumstances.
• Voluntary uncommitted c/s is now included. This is cost sharing, usually investigator effort, which is over and above what is offered in the proposal. There is no requirement to record it in the accounting system or report to the sponsor.
• While we want to reduce voluntary cost sharing, language has been added that originated with guidance from OMB:  it is presumed that some committed effort by the PI is expected, whether charged to the grant or cost shared
• A definitions section has been added

If you have questions, please contact the Office of Sponsored Projects Administration at 257-9420.