Chapter 7070
.010 General Information
.020 Cost Share Reports
.030 Account Information Cover Sheet
.035 OMB Cost Sharing Classifications
.040 Reporting Cost Sharing Time
.050 Grant Funds as a Source of Cost Sharing
.070 Importance of Accuracy and Timeliness
.075 Late Cost Sharing Transfers
.080 Questions
Sample Forms:
.100 Account Information Cover Sheet
.110 Report of Payroll Expenditures
.120 Cost Sharing Report
Federal regulations (Office of Management and Budget Circular A-21, Section
J.8) require that educational institutions
prepare and maintain documentation to verify the faculty and staff time devoted
to a sponsored project whenever the payment for such time is directly charged to
a sponsored project or claimed as cost sharing for a sponsored project.
Time directly charged to a sponsored project is the amount of an employee’s
time spent working on a sponsored project where payment for that time is from
that project’s funds.
Time claimed for cost sharing is time spent working on a sponsored project
during the project or program period, but where the payment for that effort is
from KSU funds (non-project, non-federal funds). Cost sharing is defined by the
Federal Government in OMB Circular A-110, Subpart A, paragraph 2.i. as follows
"cost sharing and matching means that portion of project or program costs
not borne by the Federal Government." Additional information can be found
in A-110, Subpart C., paragraph 23, which can be found on the Office of
Management and Budget (OMB) site: http://www.whitehouse.gov/omb/circulars/a110/a110.html.
Cost
share cover sheets are prepared for each sponsored project that had cost sharing required during
the reporting period. The reporting periods coincide with calendar
quarters and will approximately match the following schedule: January
through March, April through June, July through September and October through
December.
The Controller's Office will send the Cover Sheet to departments
approximately three weeks after the end of the last payroll period in a quarter
(March, June, September, December).
.030 Account Information Cover Sheet
The Cover Sheet shows information about the account as entered in the
Financial
Information System (FIS). The FIS
account number for that report, the account description, sponsor, department,
principal investigator's) or responsible person in charge of the project, the
starting and ending dates of the project. The dollar amount of required cost
sharing of salaries plus the cost sharing reported to date will also be shown.
If any information on this form is incorrect, the department should contact the
Controller’s Office, Sponsored Projects Accounting Section, to make
corrections.
A sample of this report can be viewed by clicking this Cover Sheet form.
.035 OMB Cost Sharing Classifications
There are three classifications for cost sharing: mandatory, voluntary committed, and voluntary uncommitted cost sharing. Mandatory cost sharing is cost sharing required by the sponsor as a condition of the award. Voluntary committed cost sharing is cost sharing not required by the sponsor but promised by the awardees. Both mandatory and voluntary cost sharing must be documented in the Cost Share system. Voluntary uncommitted cost sharing is faculty-donated time above that agreed to as part of the award. Voluntary uncommitted cost sharing should not be documented in the Cost Share system.
.040
Reporting Cost Sharing Time
Cost sharing (mandatory and voluntary committed) will be reported on
the cost share spreadsheet. This spreadsheet will be completed by the
departments. Information needed is: reporting
organization, the name and Employee ID number of the
employee, the FIS project number
the cost sharing time was paid from, the FIS
source number the cost sharing time was paid from, the FIS organization number
the cost sharing time was paid from, each
payroll period end date for cost sharing, the number of days, the
percentage of salary time claimed for cost sharing
and the percentage of benefits time claimed for cost sharing.
For example, a full-time professor who is cost sharing half time on a project
would show 50% of their time for cost sharing. A graduate research assistant on
a four-tenths time appointment who is cost sharing all their time on the project
would show 100%.
This information will be entered into a database for calculating cost sharing
dollars for each project. The cost sharing report
is generated and mailed to departments after the cost share spreadsheet has been
returned to SPA and entered into the database.
Detailed instructions for the cost share process are located on the Sponsored Projects Accounting web site at: http://www.k-state.edu/controller/spa/costshare/index.html .
.050 Grant Funds as a Source of Cost Sharing
Grant funds may be used as a source of cost sharing when the allowable criteria of A-110, Subpart C., paragraph 23, and other sponsor regulations are met. This will typically be non-federal sources, such as Foundation funds. To use grant funds as a source of cost sharing, a grant matching project needs to be requested form Sponsored Projects Accounting. The matching project will begin with a "G". Budget will be transferred out of the project which is the source of cost share and into the new matching project. The new matching project will map to the same award as the source of the cost share. Cost shared salaries will be paid from the grant matching project and will not be reported via the cost share system.
.070 Importance of Accuracy and Timeliness
Federal auditors will use the Cost Share
Reports and statistics prepared there from to audit and approve or disapprove
federal payments to Kansas State University. Therefore it is very important that
the cost share reports be prepared and reviewed carefully, accurately, and on a
timely basis.
Cost sharing information is often needed to meet project requirements, such as
quarterly reports or for billing purposes. If a project ends during a quarter
and cost sharing figures are required to complete a final report, a spreadsheet
for that project can be processed after the final payroll period for the project
is completed.
Retroactive changes to Cost Share
Reports affecting cost sharing time or an employee's source of salary will be
allowed for the current and previous two quarters
only. This is important to maintain a credible reporting system
and to protect against audit disallowances.
Changes
or additions to cost sharing are considered transfers.
These are considered a late transfer 90 days after the original cost
share was due OR if the effort report due date has passed.
Late cost share transfers will be allowed only in limited circumstances.
For late transfers, the Late Cost Share Transfer Justification Form must
be completed, signed and submitted to the Sponsored Projects Accounting Office
for approval. In addition, the
spreadsheet needs to be submitted via e-mail.
Questions on this chapter should be referred to the Controller's Office,
Sponsored Projects Accounting (SPA) Section at 532-6207.