Basics of Cost Sharing/Companion Accounts
Cost sharing involves costs of sponsored projects that are
not funded by the project.
Cost Sharing Terms
- Mandatory Cost Sharing – required by the sponsor, quantified
in proposal, must be captured, documented and included in the
F&A rate calculation.
- Voluntary Committed Sharing/State Cost Share - quantified in
proposal’s budget, is not mandated by the sponsor, must be
captured, documented and included in the F&A rate calculation.
- Voluntary Uncommitted Cost Sharing - not required by the
sponsor as a condition for the award, not quantified in the
proposal and/or budget, but performed as a part of the project,
does not need to be documented or counted in the F&A rate
calculation.
Cost Sharing Federal Requirements
OMB Circulars A-21 and A-110 require that cost share be:
- verifiable to records
- not from other federal sources (unless authorized)
- necessary and reasonable
- allowable under the cost principles
- in the approved budget (when required by agency
- not included as cost sharing for any other sponsored
program
Methods of Accumulating Cost Sharing
- use of companion accounts which are 2-8xxxx. The last four
digits correspond with the last four digits of the FRS number
assigned to the project.
Salary Cap - salary cap applies to awards from the National
Institute of Health (NIH) and may apply to other agencies,
Federal and private. Salary cap also applies to pass through
awards that originate from NIH and are passed through another
institution to the UConn Health Center.
Salary cap defines the maximum annual salary rate that can be
charged to an agency’s award. The cap is set effective January
1st of each year.
Salary is reviewed at the end of the budget period. If there
is a net overcharge due to the salary cap, an adjustment will be
made.
Effective July 1, 2005, salary cap percentages are identified on AA forms
and the corresponding payroll is charged to companion accounts,
2-8xxxx.
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