(Cost) Share and Share Alike
Cost sharing is the art of dedicating effort to a project and getting someone else to pay for it (usually the University). It’s nuanced. It’s subtle. It can drive you crazy.
A true cost share is one in which the effort dedicated is not entirely paid for by the project, usually to alleviate a budget. In order to save you some time, please know that it is very, very rare that these types of cost shares are getting approved nowadays if general funds is involved, here at the med school. Over-the-cap cost share, of course, is picked up as a matter of policy; these are those situations in which grant personnel make a higher salary than the agency cap ($187,000 as of this post, for most federal agencies) and Wayne State needs to pick up the difference. If you’re looking for how to do those calculations, check out our post from February 26, 2014 (note that the salary cap has been raised since then).
In order to help your cost share experience go as smoothly as possible, here are some general questions and answers to help you figure out your next move:
- Is this cost share request solely for over-the-cap charges?
- If your answer is yes, you do not need chair and dean signatures in the pre-award phase, only just-in-time. You do, however, need to make the calculations and note the amount and index in Evisions/SP. We have a brief tutorial on that, too.
- If your answer is no, you need a fully-executed cost share form.
- Who needs to sign the cost share form in order to be considered “fully executed?” The cost share for must be signed by the chair of the department of the cost share request, School of Medicine Fiscal Affairs, and the School of Medicine Vice Dean for Research, in that order.
- There are instances where a business official may sign in the place of the department chair. In order for a business official to proxy for a chair, the Office of the Vice Dean for Research must have a memo on file granting this proxy. This memo must have an end date (so it remains reviewable and renewable in turnover phases), and must specifically mention cost share signatory authority. These memos can be filed with our office.
- What percentage goes in the “Effort %” box on the form? The title of this box is misleading; this is actually a space for the percentage of the investigator’s salary that will be cost shared. You can clarify the percent effort dedicated to the grant in the comments box. For instance: if an investigator has a salary of $250,000 per year and will dedicated 10% effort to a project, the percentage of her salary to be cost shared is: [($250,000-$187,000)/$250,000]*10%, or about 2.5%. That is the number that will go in the box on the form.
To help illustrate these principles, we’ve provided a few examples of redacted, approved cost share forms from our friends in Fiscal Affairs. We also have our handy over-the-cap calculator to help save you same time. As always, please feel free to contact us for guidance. Happy calculating!