Cost sharing is defined as the portion of the total project costs of a specific sponsored agreement that is borne by the University, rather than the sponsor. Cost sharing represents a reallocation of department, college or school resources to specifically support an externally sponsored agreement. Examples of cost sharing include contributions of personnel effort and associated fringe benefits, contributions of other direct costs associated with a project but not funded by the project and indirect costs budgeted at less than the University's negotiated rates. It is the responsibility of the department to provide resources for cost sharing of direct expenses, if permitted. Indirect expenses may not be cost shared without the approval of the Vice Provost for Research and Graduate Education.
Cost sharing is classified as either mandatory or voluntary.
Federal agencies may consider faculty effort mentioned only in a proposal's narrative as a cost sharing commitment. Therefore, if its mentioned in the narrative, then the cost sharing effort should be noted on the Research Foundation's proposal record form and on the proposal's budget sheet. For large complex grants, where a multiple of personnel are involved in providing mandatory cost sharing, the cost sharing will require separate tracking in the accounting system. Where salaries are cost shared, both types of cost sharing require tracking in the effort reporting system, as well as appropriate adjustments in the indirect cost calculation. An agreement to cost share whether mandatory or voluntary represents a commitment of scarce university resources to provide the stated service or assets during the performance of the project.