Procedures for Cost Sharing and In-Kind or Matching Requirements
for Sponsored Projects
to access Cost Sharing Form and Instructions
To establish procedures for the funding, accounting, and reporting
of cost sharing or matching requirements in conjunction with a sponsored
DEFINITION: Cost sharing or matching means that
specific portion of the project or program costs that is not funded
by the sponsor.
Refer to Sponsored Projects Policy #2119 for detailed definitions
and examples of the different types of cost sharing.
Proposed cost sharing must be clearly indicated on the Proposal
Transmittal and Approval Form and the ORS Sponsored Projects Cost
Share form must be completed and submitted with the proposal prior
to submission of the proposal to the sponsor.
Direct Cost Expenses:
A separate "5" ledger fund will be set up by ORS to account
for required cost sharing related to a sponsored project when expenditures
for direct costs such as salaries and wages, equipment, supplies,
animal care costs, etc., will be made which require the expenditure
of University funds of $10,000 or more specifically for the project.
These cost shared expenditures will be accounted for in a cost share
fund. The cost share fund will appear as a Prime/Sub-account relationship
in the ORS PennERA award database, where the amount awarded by the
sponsor will be considered the prime fund. The link between the
award and the cost share fund will be made through use of the Account
Attribute Grant Gift I.D. This field will be populated with the
ORS Institution number. A Billing Frequency CS (Cost Share Account)
and Format Code 09 (No Invoice Required) will be assigned to the
fund so it will be easily recognized as a Cost Share Fund. A Special
Budget Journal will be posted to Object Code PTCS (Project Total
Cost Share). This is a special budget object code that will reflect
the amount of the cost share for this award. Additionally the cost
share fund number will have an F&A rate of 0%. PBIL and PBUD
will be blank.
ORS will calculate the amount of F&A costs associated with
the amount of direct cost share when necessary for financial reporting
purposes as an additional cost sharing contribution of the University,
using the current applicable F&A cost rate.
In-kind Cost Share:
In-kind cost share is the provision of goods or services whose
value can be established by reliance on what those good or services
may bring in the open marketplace. It is provided by sources outside
of the University of Pennsylvania thus it is not reflected in our
financial system. The in-kind cost share should be clearly stated
in the proposal, detailed on the ORS Sponsored Projects Cost Share
Form and tracked by the department.
1. The Proposal Transmittal and Approval Form must indicate that
cost sharing has been included in the proposal, whether required
as a condition of the submission of the proposal, or voluntarily
committed to the project.
2. The ORS Sponsored Projects Cost Share Form (available from ORS
web site) must be attached detailing the proposed cost sharing.
3. The source of cost sharing needs to be specified prior to account
4. Direct cost expenses other than “in-kind” and “matching”
should be budgeted based on the notice of award and charged directly
to the fund established for the cost share portion.
5. Personnel costs, whether required as mandatory in the award
document, or voluntary committed cost sharing included in the proposal,
must be budgeted and expensed from the cost sharing fund. Under
limited circumstances and with sufficient documentation, an exception
to this may be made by the Executive Director, ORS. Such exception
may involve budgets at the Provost or higher level, (e.g., sabbatical
leave, tuition subsidy, etc.). In such cases a link of the costs
to the sponsored project must be made. The name of the individual
on sabbatical leave, the period, salary amount and relation to the
project is sufficient. Similar information is necessary for tuition
6. The department will be responsible for funding the cost sharing
by posting a revenue entry to Object Code 4822 in the “5”
ledger fund established for the amount of the cost sharing. Revenue
entries must be posted at the time the fund is set up for the amount
of cost share required for the current fiscal year. At the start
of each succeeding fiscal year a revenue entry must be posted for
the amount of cost share required for that fiscal year.
7. A certification of the amount of required cost share, when a
separate fund was not established, must be provided in detail to
ORS by either the PI or the BA within the adjustment period (close-out)
of the award to ensure that the costs are included in the financial
report submitted to the sponsor. The certification must include
any in-kind contributions, matching gifts, tuition match, etc.,
used as cost sharing. Indicate the ledger fund charged, or an identification
of the in-kind contribution with a value of the amount contributed.
The certification statement will be made part of the official accounting
records and will be subject to audit review and verification. Detail
by Object Code is required. If the In Kind cost sharing has been
provided by a source outside of the University of Pennsylvania,
this report is required to be certified by a financial official
of that organization.
Research Services Responsibilities:
1. ORS will issue a separate AIS for the required cost sharing
account as a Prime/Sub relationship in the PennERA Sponsored Projects
database. Except for cost sharing in those cases where a separate
fund is not established (i.e. in-kind contributions, matching gifts,
tuition matching, etc) ORS will set up a separate fund in BEN Financials
to account for the costs. The amount of the committed cost share
will be included in the remarks section of the AIS.
2. When the financial report is due, Research Services will combine
the expenditures on the prime and the cost share sub-account and
report the total expenses to the sponsor.
3. The fund established for the cost share will be linked to the
award fund through the Account Attribute Grant Gift I.D. The field
will be populated with the ORS Project ID number.
here to access Cost Sharing Form and Instructions
here for a printable version of the above Procedure
-August 18, 2005