Cost Sharing is the financial support contributed by universities to sponsored projects. Compliance with federal cost accounting standards requires that Cost Shared expenses be treated in a consistent and uniform manner in proposal preparation, award negotiation and the accounting of these expenses in the financial reports to sponsors.
Any Cost Sharing included in the award budget is a condition of the award and is subject to audit.
Under the OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Sections 2 CFR 215.23(a)(5), 200.29, & 200.306 state that Cost Sharing is not expected, nor can it be used in the review process, unless a Cost Sharing requirement is allowed under the awarding agency’s regulations and specified in a notice of funding opportunity.
There are two types of Cost Sharing which require both tracking and reporting:
- Mandatory Cost Sharing: Project costs that are not paid by the sponsor and are required as a condition of the award.
- Voluntary Committed Cost Sharing: Costs specifically pledged on a voluntary basis and specifically included in the award budget.
CUNY discourages Cost Sharing unless such a commitment is required by the sponsor. When there is documented evidence that a Voluntary Cost Sharing commitment is necessary to ensure the competitiveness of the CUNY proposal, approval must be obtained by the Vice Chancellor for Research at the time of the application/proposal.
Note: Cost Sharing may not be explicitly stated in an Award Notice, but it is always recognized in the award document by virtue of language that states the award is based on the application/proposal submitted.
 Cost sharing offered to a sponsor in the proposal documents, must be specified and quantified, becomes a binding commitment upon the execution of the award document.