- About
- Research Lifecycle
- Find Funding
- Develop & Submit Proposal
- Negotiate Agreement
- Award Set Up
- Manage Award
- UFIRST – Award Modifications
- Award Terms & Conditions
- Standard NSF Award Terms & Conditions
- Standard NIH Award Terms & Conditions
- NIH Data Management and Sharing
- NASA China Restrictions
- Fiscal Management
- Personnel Management
- Effort Reporting & Management
- Progress Reports
- Sponsored Projects Reporting
- Award Closeout
- Federal Agency Grant & Contract Websites
- Frequently Asked Questions
- Close Award
- Research Integrity & Compliance
- Resources
- News & Features
- UF Innovate
Cost Sharing
On this page:
Cost Sharing Policy
Types of Cost Sharing
Cost Share at Proposal Stage
Cost Share at Award Management Stage
National Science Foundation Cost Sharing Policy
Cost Sharing FAQs
Resources
Cost Sharing Policy
It is the University’s policy that only mandatory cost sharing is offered to sponsors. Mandatory cost sharing requirements are usually defined by law, statute, sponsor regulations, or written in the application guidelines for a specific program. When mandatory cost sharing is required a copy of the request for proposal (RFP), regulations or guidelines describing the requirement must be included with the UFIRST proposal.
This cost sharing policy does not preclude exceptions that allow voluntary committed cost sharing to be offered when it is judged to be appropriate under certain circumstances to leverage a project. Consistent with the Uniform Guidance (2 CFR 200.99 and 200.306), voluntary committed cost sharing means cost sharing specifically pledged (quantifiable amount of resources) on a voluntary basis in the proposal’s budget or budget justification.
Commitments made in other sections of the proposal, including but not limited to, Institutional Environment & Commitment, Facilities and Resources, Other Support, and Letters of Support, do not meet the definition of Voluntary Committed Cost Sharing. However, if the budget justification refers to any other section of the proposal that quantifies institutional support, the sponsor can add this to the committed cost share amount at their discretion. Therefore, the University STRONGLY suggests not committing any resources outside the budget and budget justification.
All cost sharing, except any over-the-cap salary, must be approved by the appropriate business official with authority to commit funds on behalf of the unit covering the cost. This individual is known in UFIRST as the Unit Fiscal Authority (UFA). To facilitate cost sharing approvals the UFIRST proposal electronically routes to the necessary approvers to collect approval for all cost sharing, except over-the-cap salary, which does not require approval.
UFIRST Guide to Approving Cost Share
Cost sharing contributions must meet all the following criteria:
- Are verifiable from the University’s accounting records;
- Are necessary and reasonable for accomplishment of project or program objectives;
- Are allowable under 2 CFR 200 Subpart E—Cost Principles;
- Are not included as contributions for any other sponsored award; and
- Are not deriving from another sponsored award, except where the sponsor specifically allows.
Types of Cost Sharing
| Mandatory Cost Share | Voluntary Committed Cost Share | Voluntary Uncommitted Cost Share |
|---|---|---|
| - Required by statute or as a condition of a specific solicitation/program announcement | - Not required by the sponsor and cannot be used as a proposal evaluation factor | - Contributions made to a project after the award is received, such as additional PI effort spent on a project but not charged to the sponsor |
| - Costs are documented in the proposed budget or justification | - Quantifiable costs or effort are voluntarily included in the proposed budget or justification | - Not planned or documented in proposed budget or justification |
| - Normally referenced in the award document | - If awarded, PI and UF are "committed" to providing the project with the indicated support | - Not referenced in the award document |
| - Tracked and reported to the sponsor | - Must be documented and tracked but is not normally reported to the sponsor | - Not tracked or reported |
Cost Share at Proposal Stage
Costs Used to Meet a Mandatory Cost Share Requirement
If the sponsor has a mandatory cost sharing requirement, unrecovered and associated indirect costs are the best types of cost sharing to offer.
Unrecovered indirect costs are the difference between the amount of indirect costs UF would be allowed to recover under our NICRA and the amount the sponsor will pay. Sponsor-allowed indirect costs should first be charged. If the sponsor’s allowable indirect cost rate is less than UF’s negotiated rate, then unrecovered indirect costs may be used to meet a cost share commitment, provided they are allowable per the sponsor’s guidelines.
When including direct costs as cost share, keep in mind there are still indirect costs associated with these direct costs that are being borne by the University. These associated indirect costs can generally be used to meet a cost share requirement, provided they are allowable per the sponsor’s guidelines.
If unrecovered and associated indirect costs are not allowable, effort is the next best type of cost share to offer. Supplies, travel, and other types of support should be considered/offered last.
Minimum Effort Commitments
Minimum effort commitments for PIs that are not supported by the sponsor are not considered mandatory cost sharing, as they are not a condition of the award. The 1-2% required minimum effort commitment for PIs is UF’s institutional policy for addressing Memorandum M-01-06 issued by the Office of Management and Budget. The law pertains to Federal funds, but for consistency UF applies it for all sponsors on all applicable sponsored projects. This commitment is not required to be explicitly stated in the proposal budget workspace but will be captured in the University’s commitment management system.
Third-Party Cost Sharing
All committed third-party cost sharing must be entered into the UFIRST budget workspace. Select “yes” on question 5.0 on the General Budget Information tab on the appropriate budget workspace and select the contributing third-party organization(s). Enter the dollar amount on the General Costs grid on the associated Cost Sharing budget workspace in the appropriate expense category and choose the appropriate third-party organization from the Responsible Unit dropdown. UFIRST will not incur F&A on the third-party cost share if it has been entered correctly following the steps above.
Unquantified Institutional Support
Unquantified institutional support, such as UF support for tuition or graduate students, is not auditable and is not entered into the University’s cost sharing system since UF is not bound to meet an exact dollar figure. If a dollar figure or specific effort amount is included, the cost share becomes “quantified” and must be tracked.
The Facilities & Resources section of the proposal is an appropriate place to mention unquantified institutional support. UF must provide this support in the event of an award but is not bound to a specific dollar amount.
Cost Share at Award Management Stage
Committed cost share must be monitored and documented throughout the life of the project. Cost shared effort and salary/fringe is typically captured through UF’s effort system. Other forms of cost share, such as unrecovered and associated F&A, tuition, equipment, supplies, and third-party cost sharing must be captured through the Manual Cost Sharing Entry form. PI signature is required on the Manual Cost Sharing Entry form to certify that (1) the charges being reported on the form are in fact in support of the project indicated and (2) these funds were not used to meet any other cost share commitments.
Award management should include regular monitoring of cost share, including third-party cost share. Do not wait until the end of the award to verify cost share, as you may realize that the requirements cannot be met. There have been instances where third-party contributors have dissolved by the end of the project, leaving no one to verify that commitments have been met. Check in regularly with third-party organizations providing cost share. Review RSH208 for additional information on award management.
Only committed cost share is tracked in the University’s system. If additional unrestricted funds are spent to support a project which did not have a cost share commitment, this is considered voluntary uncommitted cost share and does not need to be reported on a manual cost share form or to the sponsor.
National Science Foundation Cost Sharing Policy
The National Science Foundation (NSF) prohibits voluntary cost sharing. If a PI includes any voluntary cost sharing in a proposal being submitted to the NSF the investigator runs the risk that the proposal will be returned without review or declined. NSF only allows mandatory cost sharing when required by the NSF Program Announcement. See the NSF Cost Share Policy and Related NSF FAQs.
Cost Sharing FAQs
Cost Sharing FAQs
1. Can I have cost sharing in my UFIRST proposal and not quantify it to the sponsor?
Yes. However, if there is an amount quantified to the sponsor, at least that amount must be entered in the cost share budget in UFIRST.
2. A Federal sponsor has issued guidelines that do not require cost sharing but state that it is encouraged. What should we do?
With the implementation of the Uniform Guidance, Federal sponsors are no longer permitted to encourage voluntary committed cost share. If a sponsor has included such language in their guidelines and does not agree to remove it UF has channels, such as the Council on Government Relations, which can report this to the Office of Management and Budget (OMB). The OMB is responsible for the oversight of Federal funds and will address this cost sharing language with the sponsor.
3. Can non-profit sponsors encourage voluntary cost share?
Yes. The rules in Uniform Guidance only apply to Federal funds. Non-profit sponsors can still encourage voluntary committed cost share.
4. My PI is submitting to a sponsor whose RFP contains a 1:1 (dollar-for-dollar) mandatory cost sharing requirement, but my PI intends to commit 2:1. Is this additional cost sharing voluntary?
Yes. In UFIRST, the amount over the required cost share amount should be categorized as “Voluntary” in the cost share budget. UF strongly recommends that only the amount of cost share necessary to meet a mandatory cost share requirement is offered to a sponsor.
Resources
UFIRST Guide to Approving Cost Share
UF Commitment Entry Guidelines
RSH203 Sponsored Programs Budgeting Course Guide
RSH208 Post Award Management & Monitoring Course Guide
Manual Cost Sharing Entry Form
Last updated 12/6/24