Cost ShareAngela Horton and Jean Benefiel

Wake Forest Baptist Medical Center

What is Cost Share?

• Specific portion of project costs related to sponsored programs that are not provided by the sponsor

• Typically direct costs that would otherwise be charged to the grant

• In rare instances, can also be F&A costs (requires Dean’s office approval)

Wake Forest Baptist Medical Center

When to Cost Share?

• NEVER!

• Or, when REQUIRED by sponsor

Wake Forest Baptist Medical Center

Types of Cost Share

• Mandatory

• Costs required by terms of award or by federal statue & WFUHS must contribute in order to get award

• Voluntary Committed

• Costs identified within the proposal, but not requested from the sponsor

• Voluntary Uncommitted

• Cost not funded by sponsor that was not identified in proposal nor required by sponsor

• Not tracked

Wake Forest Baptist Medical Center

Allowable Costs

• Allowed on Award = Allowed for Cost Share

• Verifiable

• Not charged to another award

• Necessary to accomplish project objectives

• Allowable under cost principles

• Budgeted, if required

Wake Forest Baptist Medical Center

Unallowable Costs

• Funded by another award

• Included in F&A Rate

• Building/equipment depreciation

• Utilities

• Department administration charges

• Double counting

• Costs can only be cost shared on one project

• Expenses related to two or more projects must be pro-rated

• Costs outside the project period

Wake Forest Baptist Medical Center

Unallowable Costs (cont.)

• Costs not related to award objectives

• Costs not allowable under OMB Circular A-21

• Alcohol, entertainment, advertising, memberships, etc.

• Salary in Excess of Regulatory Salary Cap

Wake Forest Baptist Medical Center

Documenting Cost Share

• Cost Share Form

• http://brsa.wakehealth.edu/forms/cname/sponsored%20programs

• Complete with proposal

• Must supply unrestricted chart field that will be charged

• If salary is cost shared, faculty must properly certify effort to project chart field (not cost share chart field)

Wake Forest Baptist Medical Center

Cost Share Impact - Institution

• Cost Sharing has a detrimental impact on F&A rate calculation

• Increases Organized Research Base which leads to a lower approved F&A rate and lower F&A reimbursement

Wake Forest Baptist Medical Center

Cost Share Impact - Departments

• Documentation

• Department responsibility

• Expense tracking

• Uses department unrestricted funds

• Record cost share to unrestricted chart field indicated at approval

• Effort Reporting – variance explanations

• Cost sharing salary will create an effort variance that requires explanation either via comment box or post certification follow up

Wake Forest Baptist Medical Center

Cost Share Impact – Departments

• Increases staffing efforts

• Loss of F&A or absorb more indirect costs

• Possible covering of expense if total commitment not achieved

Wake Forest Baptist Medical Center

Questions?

Contact Info:

Angela Horton: 716-1433

Jean Benefiel: 716-8732