Cost Sharing Policy for Sponsored Agreements
Approved by: Bruce Blanding
Original Date Effective: 2005-07-01
Cost sharing or match is the portion of a project or program cost not paid by the Federal Government. Where matching funds or.services in lieu of funds are required by Jackson State Community College, the unrestricted operating budget will be designated and identified with the project/grant name and the term "matching" to assure expenditures against the budgeted amount are in compliance with stipulations in the contract or agreement. Cost incurred by the College to fulfill cost sharing must coincide with the budget period of the sponsored award. If cost sharing is specified and quantified in the proposal budget, budget justification, or budget narrative by the College, the institution is committed even when not required by the sponsor. It is the College policy to provide cost sharing only when required by agency guidelines, specific program announcements or necessary due to the competitive nature of the proposal (i.e. considered as part of the proposal evaluation process). Jackson State discourages cost sharing commitments when not required by the sponsor.
Cost sharing is occasionally required on non-federal agreements. The non-federal sponsor will identify terms of the cost sharing in the award agreement. Documentation requirements are the same for non-federal agreements as they are for federal.
Mandatory cost sharing is required by the sponsor as a condition of obtaining an award. The requirement for such cost participation is stated in the sponsor agency's announcement of funding or their guidelines.
Voluntary Committed cost sharing is not required by the sponsoring agency as a condition for the award but is voluntarily committed in the proposal budget
Voluntary Uncommitted cost sharing is not required by the agency as a condition for the award, not committed by faculty but effort is reported.
If cost sharing (whether mandatory or voluntarily committed) is subsequently accepted by the sponsor as a condition of the award, the College must maintain accurate records to verify that these funds have been expended toward the project's objectives.
Allowable cost sharing may include: faculty, student or staff effort, fringe benefits, supplies, new equipment, travel, other costs, tuition, unrecovered indirect cost if approved by the federal agency, in-kind and third party contributions. Existing Collegeowned equipment, space, and cost included as match on another project should not be used for cost sharing.
Third-party cost sharing, such as in-kind contributions (i.e. volunteer services), should be documented in the form of a letter from the individual or organization. The letter should include: period of effort, amount and value of effort for each individual, breaking out salary and benefits; and a statement that the source of support for the effort is non-,federal and not identified as cost sharing for another project.
When cost sharing is required from subrecipients or partners, it should be documented on subrecipient's invoices. All cost sharing policies must be reviewed by JSCC. If internal polices do not exist they will follow that of JSCC.