Subject Area: Sponsored Awards
Responsible Office: Financial Services
Approval: V.P. for Administration and Chief Financial Officer
Originally Issued: October 1994
Revised: February 2010
Refer Questions To: Casey Murray, 773-702-1949

PURPOSE:   To ensure compliance with Office of Management and Budget Circular A-110 and other regulatory policies regarding cost sharing (matching) requirements

Definitions

1. Cost sharing costs are sponsored award costs borne by the University.
2. Mandatory cost sharing are costs the University must contribute as a condition of the award.
3. Voluntary committed cost sharing costs are costs that the University voluntarily commits to by describing and quantifying costs in an award proposal.
4. Voluntary uncommitted cost sharing are costs the University voluntarily incurs but does not commit to.

1. Mandatory cost sharing costs must meet all of the following criteria:

	A.	Are verifiable from University records.
	B.	Are necessary and reasonable for proper and efficient accomplishment of the award's activities.
	C.	Are provided for in the approved budget when required by the awarding agency.
	D.	Are not included as contributions for any other Federal sponsored award.
	E.	Are allowable under the OMB Circular No. A-21 cost principles.



2. Federal awarding agency approval is required, and nonfederal awarding agency may be required, to count unrecovered indirect costs as part of cost sharing or matching.
3. Mandatory and voluntary committed cost sharing expenses—other than cost sharing caused by the NIH salary caps—must be charged to a “cost sharing” associated account of the sponsored award.  The principal investigator or his/her designee must identify the funding source for the account at the time the account is created.