|University of Arkansas at Little Rock|
|Policy Name: Cost Share|
|Policy Number: 603.10|
|Effective Date: February 12, 2016|
Cost sharing at UA Little Rock must be proposed, approved, administered, and accounted for in a consistent and prudent manner. UA Little Rock strongly discourages voluntary cost sharing arrangements for all sponsored programs, as these arrangements involve unique accounting procedures and require funding resources from UA Little Rock. UA Little Rock provides only the minimum amount of cost sharing necessary to meet sponsors’ requirements. When there is documented evidence that the commitment is necessary to ensure the competitiveness of the proposal, school officials may allow these commitments by approving them in writing before a proposal is submitted and managing the committed resources.
To comply with all applicable federal laws and regulations and sponsoring agency guidelines, UA Little Rock must be accountable for documenting and verifying cost sharing commitments. UA Little Rock’s cost sharing policy adheres to the U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Sections 2 CFR 215.23(a)(5), 200.29, and 200.306.
ORSP must track and report mandatory cost sharing and voluntary committed cost sharing. Once committed in a proposal narrative, proposal budget, or notice of award, mandatory and voluntary committed cost sharing funds must be verifiable and fully documented in the accounting records in accordance with government regulations.
To Whom Does This Policy Apply
All individuals involved with the administration and conduct of sponsored award activities.
Expenses incurred to meet cost sharing commitments require the same accounting, financial, legal, and regulatory burdens as costs on UA Little Rock sponsored programs and must fall within the period of performance. Cost sharing contributions can be university cost sharing, sponsored cost sharing, or in-kind cost sharing. Cost-shared expenses must be in compliance with university sponsored programs expenditure policies; any additional terms specified by the sponsor; U.S. Federal agency guidelines or non-federal program guidelines, as appropriate; and OMB Uniform Guidance, especially Section 200.306.
Note: If cost sharing is committed in a proposal before those cost sharing funds are secured and if the anticipated funds do not become available, the school, department, or center will be responsible for arranging an alternate source of the required cost sharing. If no alternative cost sharing source can be identified and the sponsor is unwilling to renegotiate the terms of the cost share, UA Little Rock may decline the award.
Types of Expenditures That Can Be Cost Shared
Cost sharing commitments can be met using direct or indirect costs that are allowable, allocable, reasonable, and consistently accounted for by the university. Since all cost-shared expenditures must be verifiable from university records, the use of companion accounts is required for all cost-shared direct expenses. If tracking via companion accounts is not possible, the school must track the cost sharing manually.
Principal investigators, unit administrators, the department/dean’s office, the vice provost for research, the vice chancellor for finance and administration, and ORSP are each responsible for certain aspects of the cost sharing process. Each named party should see the ORSP cost sharing webpage for more information about their responsibilities.
This document provides the basic regulations for UA Little Rock cost sharing. For additional important information, see the ORSP cost sharing webpage (ualr.edu/orsp/university-cost-sharing-policy-and-information/).
OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_mai…).
OMB Circular January 5, 2001. “Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs” (http://www.whitehouse.gov/omb/memoranda/m01-06.html).
Source: Office of Research and Sponsored Programs
Revised: Initial Policy
Approved By: Chancellor Joel E. Anderson, February 12, 2016
Custodian: Office of Research and Sponsored Programs