Cost Sharing Policy - Definitions

Cost Sharing

A commitment made by the University to fund a portion of the total cost of a sponsored agreement. This commitment may be for direct and/or indirect costs, and may consist of University funds or funds from other outside sources. Cost sharing can be classified as either mandatory or voluntary; however, both forms are true commitments and must be fully documented in the University's accounting records through the grant or contract account.

Mandatory Cost Sharing

Cost sharing which is required by the sponsoring agency as a condition of the award. This type of cost sharing must be included in the proposal budget and is usually included on the notice of award.

Voluntary Cost Sharing

Cost sharing which is not required by the sponsoring agency, but which has been committed by the University. If this type of cost sharing is included in the proposal budget and/or the proposal narrative, it must be fully documented in the University's accounting records through the grant or contract account.

Third-Party In-Kind Contribution

A non-cash cost sharing commitment to a sponsored project by a party other than the University or the primary sponsoring agency. Third party In-kind contributions do not require accounting entries to be made in the University's accounting system. However, adequate records must be maintained to demonstrate that the full cost share commitment was performed.

Facilities and Administrative (Indirect) Costs

Formerly titled Indirect Costs, Facilities and Administrative (F&A) Costs are costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project. F&A Costs include such items as utilities, depreciation, and other facilities costs, as well as many general administrative costs that contribute to the research function. It should be noted that F&A Costs are real costs of conducting research, instruction, and training which must be funded by either the sponsoring agency or the University.