Objective: Once an award is made, all proposed cost sharing commitments represent binding obligations of the Institute. The DLCI Administrators must ensure that all cost sharing commitments (mandatory and voluntary) made as a condition of the award are accounted for as a cost of the project, and are separately identified, reported, and certified in the labor distribution system.
DLCI Action Items
- Review the terms of the award to understand the cost sharing commitments
- Most awards require that the cost sharing commitment be fulfilled by the expiration of the award. However, there may be interim obligations for expenditures and/or reporting
- Some awards may limit the re-budgeting of cost sharing or may require approval for certain costs
- Complete the Cost Sharing Template [PDF]
- Send cost sharing documentation yearly to the VP for Finance Office and to the RAS for all non-MIT-funded cost sharing and RA tuition subsidy
Tracking the Cost Sharing: From the application phase through the award close-out, Kuali Coeus is the principal tool for recording the budget for mandatory and voluntary cost sharing at MIT. Kuali Coeus feeds cost sharing data from the proposal to the award database for project accounting (SAP). All cost sharing documentation will be maintained in the DLCI, RAS, and VPF files.
The RAS will create a Notice of Award and will establish cost sharing accounts as child(ren) of the prime award account:
- RAS uses the Cost Sharing Template, completed by the DLCI each year, as the basis for establishing cost sharing child accounts
- Cost-shared effort that was specified in a proposal or award, or the contributed effort of 10 percent or greater, should be charged to the appropriate child account(s)
Generally, the cost sharing obligation requires meeting the total commitment without restrictions on specific costs. However, some sponsors require prior written approval for re-budgeting between all line items in the approved cost sharing or for specific types of unbudgeted costs.
The RAS requires the DLC to complete an annual Cost Sharing Template. Then the RAS uses the data provided to update the Kuali Coeus award database and to confirm that the full cost sharing obligation under the award is described.
In accordance with sponsor financial reporting requirements, Sponsored Accounting will report cost sharing captured in MIT cost sharing cost objects, cost sharing of subrecipients, and cost sharing for which documentation has been provided by the DLCIs. The VPF conducts the final audit of cost sharing WBS to make sure that the actuals meet the full cost sharing obligation of the award. Then the sponsored accounting reviews DLCI documentation for compliance with MIT documentation guidelines. Copies of any cost sharing reports prepared and submitted to the sponsor by the DLCI should be provided to the RAS and Sponsored Accounting.