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Cost Sharing

Responsible Department
Grants & Contracts Administration
Effective Date
  1. .

    Policy Purpose

    The purpose of this policy is to establish the requirements for Principal Investigators (the “PI”) and the Grants and Contracts Administration to manage cost share on sponsored agreements at the University of North Georgia (the “University”).

  2. .


    1. Cost Share: Any project cost that is not reimbursed by the sponsor to support the scope of work defined by the federal or non-federal sponsored award.  Examples of Cost Share are, but not limited to:

      1. Facilities
      2. Time and Effort
      3. Equipment
      4. Consumables
      5. Unrecovered Indirect Cost

    2. Types of Cost Sharing:

      1. Cost-Shared Effort: The amount of time contributed to a project related to sponsored program that is not compensated by the sponsor, but is covered by another source, such as the University of North Georgia. Cost sharing can be required by the sponsor or volunteered by the University.  This must be tracked and reported.

      2. Mandatory Cost Sharing: The sponsor stipulates that cost sharing or matching funds are required as a condition of receiving an award. This must be tracked and reported.

      3. Voluntary Committed Cost Sharing: The sponsor does not stipulate that cost sharing or matching funds are required but the PI includes such cost sharing in the budget. This must be tracked and reported.

      4. Voluntary Uncommitted Cost Sharing: Costs and effort that are not included as part of the submitted proposal or upon acceptance of the award. This does not need to be tracked or reported.
  3. .

    Policy Statement

    1. When the University receives a sponsored agreement where Cost-Shared Effort, Mandatory Cost Sharing, Voluntary Committed Cost Sharing, or Voluntary Uncommitted Cost Sharing occurs, the PI must comply with federal regulations presented in the OMB Uniform Administrative Requirements and University Procedures for Grants and Contracts Cost Sharing.

    2. Grants and contracts Cost Sharing standards must be met to be considered cost share:

      1. Are verifiable from the non-federal entity’s records
      2. Not included as contributions for another awards
      3. Be necessary and reasonable to meet the project’s objectives
      4. Allowable under the cost principles
      5. Not paid by the federal government under another award
      6. Provided for in the approved budget, either directly or indirectly when required
      7. In compliance with other provision of 2 CFR 200

    3. Since Cost Share can reduce the overall research indirect cost recovery rate, consume departmental resources, and reduce available resources for additional research and teaching for the University, Voluntary Committed Cost Sharing or Voluntary Uncommitted Cost Sharing must receive approval from the department chair and dean. In practice, Voluntary Committed Cost Share or Voluntary Uncommitted Cost Sharing is discouraged, but will not necessarily be denied as long as plans are made to account for these dollars and prior approval is given from the Business and Finance Office.
  4. .

    Support Information

    The Cost Sharing Policy implements the Federal requirements set forth by the Office of Management and Budget Uniform Administrative Guidance 2 CFR 200.306.  Improper or inadequate documentation of Cost Share can result in the following restrictions imposed on the University by the Federal Government: Payback of award funds to sponsor; Withholding of future funding; Special monitoring by sponsor; Audit findings; Requirement for corrective action plan; Designation as a “high risk” institution; Loss of Expanded Authorities; Payment of punitive damages.

  5. .


    Any related operating procedures must comply with and should reference this policy.

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