Voluntary cost share included in a proposal becomes committed as a condition of the resulting award. As such, Emory is responsible for tracking and meeting voluntarily committed cost share. Emory’s practice is to minimize institutional cost sharing on sponsored projects, particularly cost share that is not required in the program solicitation.
Cost Share
2 CFR 200 defines cost sharing or matching as “…the portion of project costs not paid by Federal funds or contributions…” Cost sharing occurs when a portion of project costs are not paid for by a sponsor but are paid using Emory resources or by an entity outside of Emory (aka third-party cost-sharing).
Cost sharing may be a condition of the award (i.e., mandatory) or may be voluntarily contributed to a sponsored project.
Mandatory Cost Share
Mandatory cost share is when a sponsor requires cost sharing for a proposal to receive consideration and review. If awarded, the cost-share committed in the proposal becomes a condition of the award and Emory is under an obligation to meet the cost-share commitment. For example, salary above the NIH designated cap is a mandatory cost share to Emory and we must capture this cost share in the University’s effort reporting system.
Voluntary Committed Cost Share
Voluntary cost share is when a sponsor does not require cost sharing, but it is proposed or provided by the institution. As an institution, we are mostly concerned with voluntary, committed cost share. When an investigator proposes voluntary cost share that a sponsor accepts as a condition of the award, this cost share becomes committed. For example, if a sponsor allows Emory’s full indirect costs and Emory waives all or a portion of those costs, we now have voluntarily committed cost share. Emory must treat the voluntary cost share as if it were mandatory, meaning we must track and meet the cost share obligation.
Impacts
Investigators and administrators should carefully consider cost-sharing commitments as they have broad implications for the University. These implications include both financial and administrative burdens. For example:
- Cost sharing greater than what a sponsor requires means fewer financial resources for other projects
- The institution does not recover indirect costs (aka F&A) associated with cost-sharing dollars
- Cost-share reduces the University’s future F&A rate, resulting in reduced indirect cost recovery
- Emory staff must track and report cost-share commitments, resulting in additional administrative requirements
Resources
If you still have questions about cost share and the implications to Emory, consult the Emory University Cost Share Guidance at: https://rgc.emory.edu/_includes/documents/sections/policies/cost-sharing-guidance.pdf
NCURA video “Cost Scare Share: The Good, the Bad, and the Horror! https://rgc.emory.edu/_includes/documents/sections/policies/cost-sharing-guidance.pdf