Current Procedure: Various ways of tracking and recording cost share and matching exist in today’s world, but there is no requirement that the cost share/matching transaction be identified and tied to the sponsored project in the financial system.
The University distinguishes three types of situations where costs are not borne by the sponsored project
- Cost sharing - labor costs (example = payroll and fringe)
- Matching - nonlabor costs (example = equipment or supplies).
Cash matches are usually required by sponsors for equipment
acquisition programs, specialized research centers, or other
multi-disciplinary programs. Typically these funds are provided
by the institution.
- In-Kind - interchangeable with "matching" but the term may
refer to costs borne by an external organization, for example
when individuals at another organization volunteer their time.
(example = use of an auditorium –not owned by the University at
no charge)
The new system and the chart of accounts do not differentiate between cost share and match, one is payroll cost share and the other is non payroll cost share. For purposes of this document “cost share” refers to both cost share and match unless specifically pointed out.
Policy & Procedure change with implementation of the EFS: All cost share (reportable and non reportable, committed, mandatory) will be identified and tied to the sponsored project in the financial system using the COA account string. At the time of the award, a cost share budget must be set up in the new financial system in order for cost share expense transactions to pass budget check. For cost share in the form of effort, a cost share payroll distribution line will need to be established. For cost share in the form of non payroll expenses, at the time of the requisition/purchase order, the transactions must be identified as cost share.
The institution is not required to document uncommitted, voluntary cost share for Principal Investigators and Senior Researchers. However, uncommitted, voluntary cost share for anyone else documentation is required. The institution discourages any uncommitted, voluntary cost share.
Cost Share Budgeting and Expense/Req/Commitment will need the following fields:
Fund, DeptID, Program, Project, PCBU, Activity, CS, Account
What does that really mean for academic departments?
- At the time of the award (ideally at proposal time), the department must know the source of the cost share funds and supply the Grant Administrator (GA) with a fund, deptID, program and a cost share budget. The GA will setup the cost share budget in the projects module in PS at the time of award. The budget allows cost share expense transactions to pass budget check. For payroll related cost share the budget is also the source for payroll combo/distribution codes. This means that you will need to have a budget prior to setting payroll distributions.
- For cost share in the form of effort, the Department must inform their payroll person that a cost share payroll distribution setup is required. When setting up the cost share payroll distribution line in PS payroll, a good practice would be to develop the cost share budget at the same time as the project budget and for salary develop the budget at the individual level. Then forward the Notice of Grant Award and the project budget which includes cost share to your payroll person as it will show the information they need to set up the payroll distribution appropriately. See attached example called Budget Prep Example.
- For cost share in the form of non payroll expense accounts, at the time of requisition/purchase order the preparer will need to complete in addition to the Fund, DeptId and program the additional cost share chart fields PCBU (always UMSPR), Cost Share (always CS), Project (respective number). A good practice would be to develop the cost share budget at the same time as the project budget. Then forward the Notice of Grant Award and the project budget which includes the cost share budget to the person(s) who is responsible for preparing requisitions/purchase orders for the project.
- If the three additional chart fields are not completed, the expense transactions will not track as cost share. A correcting transaction will need to be processed to include the additional chart fields.
- If a cost share budget is not set up, the transactions will not pass commitment control and budget check. If adjustments to the cost share budget are required, the requestor will follow the process to request a sponsored re-budget. This cost share re-budget request is entered into PS by a Certified Approver.
- The cost share payroll distribution must be set up for all cost share; reportable and non reportable, committed, mandatory, this includes the NSF 1%, salary that is over the salary cap, etc.
- The retrofit version of ECRT will no longer allow departments to manually enter cost share data. If it's not captured in the payroll distribution upfront, then they will need to process an HSA if they need to report cost shared effort. Any change in effort in ECRT will not automatically create an HSA, the connection between PS HRMS and ECRT is one way. The payroll distributions will populate the numbers on the effort card not the other way around.
- Cost Share Budgets that will be converted into PS at the time of go live:
- Planned Cost Share entered into the ECRT system will be converted to a PS budget in Projects. ECRT currently has Fund Area Org from and Fund Area Org to accounts that will be translated to PeopleSoft Fund, Dept, Program, Project, Activity, PCBU, CS and Account. The budgets that will be created will be for $0 and include all payroll and fringe budget categories. The budget creation will create the corresponding combo codes needed for payroll distributions.
- Payroll distributions currently in HCM will be converted to PS chart values. Since cost share budgeting/tracking has never been done before, distributions for cost share will need to be updated to the new combo/distribution code.
- Please see the attached list or verify planned effort prior to June 1st as this will be the source for converted cost share budgets (For Effort Coordinators and HR Aces)
- Please see the attached list, it contains planned cost share from ECRT by name. Please review the EMPLID's listed for personnel that will require payroll Distribution changes for the new CS Combo Codes. (For Effort Coordinators and HR Aces)
- Cost Share Budgeting post conversion and go live:
- For Awards that are converted from legacy systems cost share budgets will need to be created in order to pass the budget checking process (when trying to process expense) as stated above. However, determining the amount of cost share budget will be a challenge as the converted awards are at various stages of life. Some are relatively current and some are many years old. For these awards a $0 dollar budget is acceptable. The important thing to remember is that a budget needs to be created in order to pass the budget check.
- The menu or path to view project budget is : Grants > Awards > Project Budgets
- For proposals awarded after 7/1/2008 a cost share budget should be communicated and worked out with the SPA grant administrator at time of award. (If cost sharing is a component of Award) This would be true for new awards as well as modifications/continuations/renewals to existing awards.
- Cost Share Reporting (Required Cost Share reported by SFR to Sponsor)
- For cost share expense incurred prior to 7/1/2008 SFR will use the existing methods to analyze and report on cost share incurred. SFR will continue to work with the departments to determine cost share amounts and source. These will be reported in much the same way as they are today.
- For cost share expense incurred after 7/1/2008 SFR will be analyzing transaction activity in PeopleSoft GL/Projects module. Activity that has been transacted with the Cost Share chart fields will be summarized and reported as cost share.
- Several delivered reports will summarize and detail out cost share both alone and as a part of the overall project.
- Grants > Awards > UM Noga Report
- Grants > Interactive Reports > UM Sponsored Award Overview
- Grants > Interactive Reports > UM Sponsored Project Detail
- Grants > Interactive Reports > Sponsored Transaction Detail
- Third party cost share will be handled as it is today, manually, outside the financial system.
- The HR Impacts EFS class is a great class to take to help understand the HRMS side of cost share.
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EFS: SP Forum
