Effort Reporting: Cost Sharing
What is Cost Sharing?
The funds or resources under the university control that are contributed or allocated to a sponsored project over and above the support provided by the external sponsor of that project. It is that portion of a project cost that is not borne or reimbursed by the sponsoring agency. Below are the various types of cost sharing.
Mandatory Cost Sharing
Cost sharing required by the sponsoring agency as a condition of its support of a particular project. Mandatory cost sharing is usually specified in a program announcement or application package. Mandatory cost sharing is a binding obligation of the university.
Voluntary Cost Sharing
Cost sharing the university contributes to a project at its own initiative without any requirement for any cost sharing imposed by the sponsoring agency. There are two types of voluntary cost sharing:
Voluntary Committed Cost Sharing: Voluntary cost sharing offered by the university at the time of proposal submission. The proposed cost sharing amount is included in the budget. Once an award is made, voluntary committed cost sharing is a binding obligation of the university.
Voluntary Uncommitted Cost Sharing: Voluntary cost sharing not offered by the university at the time of proposal submission. Voluntary uncommitted cost sharing is not included in the budget but is contributed after the award has been granted and more resources than awarded are needed to complete the project. Voluntary uncommitted cost sharing is not a binding obligation of the university.
Reporting Cost Sharing
If a cost sharing commitment was satisfied but the project is not listed on the effort card to document cost-shared effort, the effort coordinator should make the adjustment, by adding the account and enter the percentage to the to certified effort column. If payroll dollars are incorrect, the effort coordinator should submit a retro personnel action to have these dollars transferred and the system will produce this account for you once the PA has gone through the system. This may delay the certification process.
For more information, please see the UTHealth Handbook of Operating Procedures, Policy 75 (“Cost Sharing.”)