Cost Sharing Policies

• If a sponsor requires cost sharing, the sponsor guidelines will usually state that cost sharing is required. This is the only time cost sharing is deemed mandatory. In the application, an agency will specify if the applicant must cost share and the percentage of how much cost sharing is required of the parties involved. Upon the institution's approval of the mandatory cost sharing percentage, the ORSP will assist PIs with creating the budget to reflect the college expenses for their project.

• A dollar-for-dollar match is another term used for cost sharing, however, in this situation, the institution's percentage of their cost share is equated to a dollar amount, where the dollar amount is then added to the project's grant that requires cost sharing. Federal sponsors will never make cost sharing mandatory, and all voluntary cost sharing is prohibited as per the OMB Uniform Guidelines.

• Note: When cost sharing is not mandatory, it is considered voluntary.

• If cost sharing is not required by the grant sponsor, but is otherwise mentioned by the PI in their application, it is then identified as voluntary cost sharing. If cost sharing is not presented in the proposed budget justification but the application states that the project requires a person to work a specific amount of hours, or a faculty member will provide a specific number of hours and the cost for this time is not presented in the proposed budget, it is voluntary cost sharing. Voluntary cost sharing is expenses that will be handled by the institution and must be documented.

• Both mandatory and voluntary cost sharing are required to follow the same federal cost principle as the grant awarded - these federal cost principles and therefore required to be fully documented, tracked, and met for both types of cost sharing.

• Cost sharing is subject to evaluation by the City University of New York University Provost for Research.

Regarding cost sharing by federal agencies, The Office of Management and Budget (OMB) published its comprehensive remodeling of the federal grant administrative, cost accounting, and audit policies in the Federal Register, codified in Title 2 of the Code of Federal Regulations. This final guidance, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, succeeds and merges the requirements of eight existing OMB Circulars (A-21, A-50, A-87, A-89, A-102, A-110, A-122 and A-133). Regarding all federal agencies, this policy prohibits voluntary cost sharing by grant applicants unless otherwise mandated in sponsored research program-specific guidelines issued by an agency or otherwise exempted by law.

For each grant application, primary investigators (PIs) are expected to read the granting sponsor’s general and specific program guidelines and, in doing so, ascertain whether the sponsor has authorized cost sharing or matching funds. However, if the grant sponsor does not explicitly allow cost sharing or require it for the program, it is not allowed.  

The York College Cost Sharing Commitments:

1. If a sponsor requires cost sharing as part of their program (i.e., mandatory cost sharing), the PI must then acquire written approval from their department's chairperson, the divisional dean, and the provost at least 15 days before the grant proposal's deadline.

2. York College seldom approves of a voluntary commitment to cost share. And, no approval will be given for any voluntary cost sharing on a federal grant unless mandated by the granting agency in writing. All of the aforementioned conditions must be met before voluntary cost sharing may be put forward by the PI. Additionally, the final decision on voluntary cost sharing is made by the CUNY vice chancellor for research. 

3. Note: Waiving or reducing indirect costs (i.e., “overhead” and “facilities and administrative fees”) encompasses cost sharing. YC will not waive or reduce the indirect cost rate unless the granting sponsor mandates said waiver or reduction.

4. Additionally, York College CUNY must adhere to the cost sharing policy with the Research Foundation of CUNY.
   

When cost sharing is mandatory the project PI must receive approval from the appropriate person. Approval from the department chairperson, the divisional dean, and the provost is required at least 20 days before the application deadline.

1. Provide the university provost with sponsor guidelines of the state requirements for cost sharing.

2. Cost sharing proposal budget justification.

3. Review all policies for cost sharing.

4. Recognize the institution's source of cost share funds.

5. Important: *Only when all of the previous guidelines are met, will approval from the Vice Chancellor then be granted.