Cost Share:
Business & Finance Policy 3.03 In some grants, the grantors request that the grantee
commit to a share (cost sharing) of the grant cost which ties directly to the grant
reimbursable amount. In these grants it is extremely important that the cost share ratio
be adhered to. Failure to do so would result in the department having to refund the grant
funds and having to utilize their "A" or "E" funds to balance the account. Review this
with the CGA liaison.
Example: The grant calls for a 50/50 ratio or share of cost. The grantor provides
$50,000 and calls for a $50,000 commitment from USC. You have expended $50,000 from the
grant funds and $40,000 is recorded on the Cost Share Statement.
$50,000 grant
40,000 USC
$90,000 total expenditures
50% of $90,000 = $45,000. $5,000 will be returned to the grantor. The departmental "A"
or "E" funds will be charged for the $5,000 not covered by the grant.
How Do I Record Cost Sharing: There is an analytical code box on the many forms used
by the university for payroll and purchasing. If you wanted to purchase $200 in supplies 50 per
cent from the grant and 50 per cent from your “A” fund your entry would look similar to
this:
DEPT FUND CLASS ANALYTICAL AMOUNT
15900 A000 51302 M15900F107 $100.00
15900 F107 51302 $100.00
You would find this detail recorded on your monthly Share of Cost Statement-Level 01. On
your Management Level - 02 you would find the cost share budget by class code and the
amount expended.
There is also a form similar to a Journal Entry (JE) form - the UL (University
Liquidation). You would send a memo to your CGA liaison identifying the voucher number,
department and fund code, the class code and the amount. The CGA contact would do the
rest.
Types of Cost Share: There are two types of cost share, Voluntary and Mandatory.
Voluntary: Is not required by the grantor and is a supplement to the sponsored program cost.
Mandatory: Is required by the grantor, identified in the proposal as a funding opportunity
and a condition of the award. Mandatory cost share is also quantified in the proposal by
the principal Investigator such as percentage of personnel salaries and in-kind contributions.
Examples of in-kind contributions are donated space and volunteer services.
