Locations

Moscow

info@uidaho.edu
Phone: 208-885-6111
Toll-free: 88-88-UIDAHO
Fax: 208-885-9119
Student Union Building
875 Perimeter Drive MS 4264
Moscow, ID 83844-4264

Boise

Phone: 208-334-2999
Fax: 208-364-4035
322 E. Front Street
Boise, ID 83702

boise@uidaho.edu
www.uidaho.edu/boise

Coeur d'Alene

Phone: 208-667-2588
Toll-free: 888-208-2268
Fax: 208-664-1272
1031 N. Academic Way,
Suite 242
Coeur d'Alene, ID 83814

cdactr@uidaho.edu
www.uidaho.edu/cda

Idaho Falls

Phone: 208-282-7900
Fax: 208-282-7929
1776 Science Center Drive, Suite 306
Idaho Falls, ID 83402

ui-if@if.uidaho.edu
www.uidaho.edu/idahofalls

Budget Preparation: Cost Sharing

When the University bears a portion of the costs of a sponsored project (e.g., by purchasing equipment or supplies for the project from University resources, or by committing faculty or staff effort to the project at no cost to the sponsor) it is considered cost sharing. 

Cost sharing may be either mandatory (when a sponsor requires a certain portion of the costs to be paid for out of other funds) or voluntary (when no such requirement exists). “Voluntary” cost sharing at the proposal stage becomes “mandatory” once the proposal is approved for funding by the sponsor. Voluntary cost share and cost share above the amount required by the sponsor must be formally requested and approved by the Vice President for Research and Economic Development (VPRED) prior to proposal submission. Please allow up to five (5) business days prior to proposal submission to complete this process.

Cost sharing has programmatic, administrative, and financial consequences for the University and  is strongly discouraged unless required by the sponsor (typically by a statement in the program announcement). An explicit commitment to devote a percentage of effort to a project carries auditable record-keeping requirements, reduces flexibility, and has an adverse effect on the University's recovery of indirect costs. The salary and fringe for the time committed voluntarily in a proposal, and the amount of any other contribution of University funds, are included with other direct charges in the “research base” (the denominator of the fraction used to calculate the University's federal indirect cost rate). As a result, unnecessary cost sharing reduces the University’s recoverable indirect costs. 

Cost-sharing requirements are ordinarily specified by the sponsor and displayed in the budget as a fraction of total costs. Note that should a program announcement require cost sharing and also cap indirect costs at a rate below the full federal rate, a proposal for that program may be able to use the “unrecovered” indirect costs to fully or partially satisfy the cost-sharing requirement.  

It is important to remember that once funding is awarded all cost-sharing amounts are subject to audit. Also, federal funds from another source may not be used to meet the cost-sharing requirement without specific permission from that source. If a budget revision is requested, remember to revise the cost-share commitment proportionately.