Cost Share Accounting Procedures

Procedure Date: November 2018     Revision: 0     Last Review: N/A

Proposing Mandatory and Voluntary Committed Cost Share

During the proposal stage, if cost share is included in the proposal, a Cost Share Worksheet (SP-11) must be uploaded to the infoEd® proposal record and submitted to Sponsored Projects along with the proposal. The SP-11 must be electronically approved within infoEd® (via the internal proposal approval routing process) by the principal investigator(s), chairs(s)/director(s) and dean(s)/vice president(s) of the units committing cost share. Requests for institutional cost share from Research & Innovation must be received by the vice president for research and innovation at least three weeks prior to the proposal submission deadline.

Accounting for Cost Shared Expenses in Workday

If the project is awarded and the cost share accepted by the sponsor, one or more grant cost share worktags will be created by Sponsored Projects to account for cost shared expenses that can be recorded in Workday. (Procedures for cost share from waived facilities and administrative costs and/or third-party cost share is described in the next section.) The grant cost share worktag will be linked to both the non-sponsored fund to which a cost shared expense will be charged and the award number of the project. Grant cost share worktag titles will have the suffix, "CShare."

To enter a cost shared expense in Workday, first enter the PG or GR worktag number that will pay for the expense. After the Cost Center, Function, Fund and Unit information loads, add the grant cost share worktag.

Example: An employee will be paid from PG07444 (FD121) and a portion of the employee's time will be used as cost share on the COBRE Neuroscience project. Sponsored Projects has set up the worktag, GR06556 COBRE Neurosc - Cshare 2.

To allocate the portion of the employee's salary that will be used as cost share, first enter the worktag that will pay that portion of the employee's salary, PG0744, as illustrated below:

Workday image of how to add program worktag

To add the grant cost share worktag, enter the GR number in the search field as illustrated below.

Workday image of how to add grant cost share worktag

Workday will add the grant cost share worktag to the non-sponsored worktag.

Screen shot of Workday cost allocation with a blue arrow pointing to the cost share worktag and a red arrow pointing to the program worktag

In the illustration above, the cost shared salary will be charged to PG07444 and will be identified as cost share for the COBRE Neuroscience project because the grant cost share worktag, GR06556, was added to the allocation.

This procedure of adding a grant cost share worktag to a non-sponsored worktag should be used for initial cost allocations and accounting adjustments.

Accounting for Waived Facilities and Administrative (F&A) Costs

Waived F&A expenses used to meet a cost share requirement will be calculated by Sponsored Projects.

Accounting for Third Party Cost Share Expenditures 

Third party cost share expenses cannot be recorded in Workday. Therefore, the expenses must be documented as follows and the documentation must be emailed to Sponsored Projects.

Documenting Third Party Cost Share - Corporate or Non-Profit

  • Employees must have timesheets documenting time worked on projects that is contemporaneous with work performed.
  • Fringe is only allowable if actual cost is noted and is based upon percentage of pay.
  • F&A costs or overhead is not permitted.
  • Non-salary costs must have receipts and/or valued based upon industry standard methodology and allocable percent, e.g., space valued at current rental rates an on percent usage on project.

Documenting Third Party Cost Share - Private Individual

  • Volunteer must have logs showing when they worked on the project.
  • Volunteer rates of pay must be consistent with those paid for similar work in the labor market.
  • Fringe and F&A or overhead is not permitted.
  • Non-salary costs must have receipts and a cover memo from an authorized signer.

Documenting Third Party Donated Space and Equipment

  • Value of space and equipment must be based upon percentage of use associated with the project.
  • Base value must be determined annually based upon comparable market rates or some other consistent methodology.

Procedures for Salary Cap Cost Share 

Salary in excess of a sponsor's salary cap is an unallowable expense and cannot be charged to a sponsored project. It must be charged to a non-sponsored account and is, therefore, a form of uncommitted cost share. For awards that include over-cap salary expenses, Sponsored Projects will set up a Salary Cap Cost Share worktag linked to the non-sponsored account that will pay the expense. Salary Cap Cost Share worktags will have a suffix of - SalCap CShare. Over-cap salary must be expensed to the non-sponsored account and linked to the project through the addition of the Salary Cap Cost Share worktag, as illustrated above. Salary cap cost share cannot be used to meet a project's cost share requirement and will not be reported to the sponsor as cost share.

Reporting

Sponsored Projects will distribute a cost share report monthly. It is the principal investigator's responsibility to review the report and monitor cost shared expenditures.

  • Payroll expenses recorded in Workday must be certified through the effort reporting process. Uncertified effort is an unallowable expense and cannot be used to meet a cost share requirement.
  • Non-salary expenditures for University expenses must be recorded in Workday.
  • Waived F&A expenses will be calculated by Sponsored Projects and added to the monthly cost share report.
  • Third party cost share must be reported on company letterhead, signed by an authorized company official, include supporting documentation as detailed above and be verifiable.

The frequency and formats for reporting cost share to the sponsoring agency will be dictated by the award terms and conditions or sponsoring agency guidelines.

Closeout

Awards requiring cost share will be closed under the same procedures and policies as all sponsored activity.