Cost Share

Cost Share can be mandatory or voluntary; if voluntary cost share is provided it becomes mandatory at award.

Cash Cost Share

Cash cost share is actual money to pay for expenses and at award, the cash is pulled from its source and put into a separate spending account. Cash for cost share can come from internal sources such as a Personal Development or Research Development accounts, Departmental or Unit Funds. External sources can include third party contributions.

In-Kind Cost Share   

Any service provided having quantifiable value that is not “cash-based” is in-kind cost share.  The most common type of in-kind cost share is Academic Year effort, fringe, and overhead. There are very few other in-kind services allowable, and they generally come with strict guidelines and/or restrictions and should be discussed in length with your Proposal Analyst and Sponsor prior to submission.

Third Party Cost Share

If Mines is required to cost share on an award then our third party entitties will also be required to cost share; this includes subcontractors and affiliated companies. Third party cost share is the most risky of the cost share types as Mines does not have as much control in assuring cost share obligations are met. This can be especially true with sources where a contract isn’t signed.  If the third party does not or cannot make their obligation, Mines is obligated to make up the difference in cost share.  Discuss any third party cost share in length with your Proposal Analyst prior to submission.

Academic Year (AY) Effort & Fringe
A specific percentage of effort can be dedicated to the project as cost share. ORA can calculate salary & fringe costs

• AY can be used; Summer and winter effort cannot be used
• Effort must be based on actual salary
• Fringe are applied at same rates as federal request

Indirect Costs
IDC can be used as cost share using the negotiated rate

Donated Equipment

• Value on the Equipment must be based on fair market value
• Must be tagged as a cost share donation by the Controller’s Office
• Cannot be used as cost share for other federal projects
• Previously purchased equipment cannot be used as cost share for an individual – Mines already owns this equipment

Donated Supplies and other Direct Costs

• Value on supplies must be based on fair market value
• Cannot be used as cost share for other federal projects
• Must include a letter from donor outlining item(s) and value
• Equipment Fees are not in-kind cost share – Equipment use is an auxiliary enterprise that requires cash to cover the costs

Mines Cash Sources

• Cash can come from many places: PI’s PD/RD account, Department, College Dean, VPRTT
• Mines gift funds can be used if prior approval comes from the Mines Foundation
• Cash must be broken out in the budget as to how it will be spent
• IDC is not charged to Mines cash contributions
• Cannot commit a project’s future overhead return as cash
• All cash dedicated to an award will be reallocated at setup as a separate cost share account (49xxxx)

Third-Party Cost Share
If cost share is mandated in the solicitation, the requirement is passed on to the subrecipient, industry partners, consultants, etc.

• Cash – A third party can contribute cash towards a project
• Equipment Use – Mines will need to determine fair market value cost of the item
• Services – The salary rate/day of an individual can be counted, however, the rates must be justified and applied equally for similar services
• Field Site Access – This is often pieced together by pricing individual costs. These costs can include transportation to site, third party employee time, and/or equipment use.
• Software and Data – Software and Data can be used as cost share but must have published or verifiable rates

ORA sets up cost share agreements with third parties (when needed), cash accounts, verifies in-kind contributions and obligations to ensure compliance with Sponsor requirements.

Financial Monitoring and Reporting is done by ORA.  Each quarter, ORA sends the PI a certification report for verification that all reported costs, especially those related to in-kind efforts, are reasonable and justifiable.

ORA understands that projects evolve and unforeseen circumstances arise. If a PI needs to adjust cost share contributions or rebudget cost share, please contact ORA. We can work with the PI and the sponsor to ensure that the project can continue while cost share is modified.

If cost share issues are left unaddressed, Sponsors have taken the following actions:

• Corrective Actions Plans
• Stop Work Orders
• Denied Invoices
• Project Termination