1. Voluntary Cost Share
Definition: Voluntary cost share refers to pledging effort or other institutional resources on a grant budget when cost share is not required by the funding agency. It must be tracked and reported.
CALS Policy:
CALS will not allow voluntary cost share on sponsored award budgets without an exception due to the significant administrative burden it creates under current systems (RAMP, Workday). Exceptions may be considered in limited circumstances where documented effort is explicitly required by the sponsor (e.g., certain NIH programs), rather than in situations where a PI elects to document voluntary effort primarily to signal increased commitment or enhance perceived competitiveness of the proposal.
- Challenges include:
- Salary cost transfers
- Reopening payroll certification (requires VC approval)
- Increased tracking and compliance complexity
- Shortage of cost share discovered at closeout
Administration of Policy:
- CALS Proposal Staff will return funding proposal with voluntary cost share listed, unless an exception and prior approval via a RAMP ancillary review.
- Voluntary contributions can still be described in the proposal’s narrative in general terms (not quantified) and must not appear in the budget or budget justification.
- In rare cases in which voluntary cost share should be offered and quantified, a RAMP ancillary review will be sent to the unit Chair (no designees allowed) and to Assistant Dean of Research. Example of acceptable cost share: Sponsor requires large amount of commitment and due to other commitments being paid on other grants throughout the calendar year, non-sponsored funding must be used.
- Ancillary review needs to state the dollar amount being committed and unique situation behind offering voluntary cost share.
2. Mandatory Cost Share
- Definition: Mandatory cost share is required by the sponsor as a condition of the award.
- Policy:
- Mandatory cost share is permitted and can include effort as needed.
- All committed cost share (effort, third-party, cash, supplies, unrecovered IDC, etc.) will be tracked to ensure compliance and prevent over reporting and underreporting of cost share.
- Federal grant-funded effort and cash cannot be used for cost share.
- Effort is preferred over in-kind cost share to reduced administrative burden.
- For grants with mandatory cost share, the requirements of the funder and grant program should be adhered to.
- Items not allowed as direct cost on a grant are not allowed as cost shared unless funder provides prior written permission to use as cost share.
3. Effort vs Cost share
The is no 1% minimal unpaid effort tracked for PI or other key personnel named in the award. Unpaid effort is tracked only when mandated by the sponsor.
Current and Pending Support (CPS) documents are not used to track cost-share commitments. Many federal grants require a CPS that includes some effort shown against all grants. For grants that do not have salary charged or required cost share, the minimal amount of time required by the sponsor (for the CPS) should be entered.
4. Effort Commitment and Payroll Certification
Effort certification has to do with payroll and any cost-share that has been paid and posted. It does not rely upon Current and Pending information.
5. Salary Savings
Paying salary on a grant (calendar (A-basis) or academic (C-basis) appointments) can generate salary savings. These salary savings are not related to cost share commitments. The allowable use of salary savings is determined by CALS Business Services.
6. PI Expectations
- For grants with large (>1 month) minimum required faculty effort, PIs, or their Research/Department Administrator should discuss the plan for budgeted vs cost-shared faculty effort with Sandy Fowler at least 3 weeks in advance of the submission deadline.
- Deviations from the standard expectations must be justified to and discussed with Sandy Fowler at least two weeks in advance of the grant deadline for approval.
- It is the PI and unit’s responsibility to track cost share and make adjustment when necessary. CALS Research Division will assist and provide guidance to ensure cost share obligations are met and are properly reported.
- Grants submitted with cost-shared commitments prior to implementation of this policy should continue to meet the commitments as budgeted.