Grants Accounting

Cost Sharing

Cost sharing is that portion of the project costs that are
funded by sources other than the sponsor, and are
categorized as follows:

  1. Cash outlays by the university
  2. University in-kind contributions
  3. Third party in-kind contributions

All cost sharing resources must meet these general criteria
defined in OMB Circular A-110 in order to qualify:

    • Are verifiable from university records,
    • Are not included as contributions for another
      federal project,
    • Are necessary and reasonable for proper and
      efficient accomplishment of project objectives,
    • Are allowable under the applicable cost principles
      (2 CFR Part 220),
    • Are not paid under another federal award,
    • Are provided for in the approved budget*,
    • Conform to other administrative provisions of
      Circular A-110.

*Note: A pledge of cost share at the proposal stage becomes
a commitment upon acceptance of the award.


To assist in documenting in-kind cost share, the following forms
are available:


  1. Certification of Labor Cost Provided by Third Parties
    Labor provided by employees of other organizations are
    valued at the employee’s regular rate of pay and the
    associated fringe benefit factor. No indirect costs are
    allowed.  Federal guidelines require an after-the-fact
    reporting and certification of time and effort provided.

Also, use this form when labor is provided on a
voluntary basis. Volunteer services are to be valued
according to rates that are consistent with those paid
for similar work. A reasonable fringe rate can also be

  1. In-kind Contribution Receipt Voucher: 
    This form is used to document support (nonlabor)
    received on behalf of the grant by another university
    source or outside third party. 

Donated supplies are to be valued at the fair market
value at the time of donation, taking into account the
condition and quantity of goods received. Donation of
space or use of equipment in which the third party retains
title is valued at the fair market rental value of the space
or equipment.

Labor provided by other university sources for cost share purposes
will be documented using the university’s internal time and effort
certification reporting system. Therefore, a separate account will
be established for recording the “in-kind” activity so that labor
expense can be separately identified.

Transfers will be made on a monthly basis from the “home”
account so that the accounts balance out. These changes
become effective with the new labor certification system
that provides a complete accounting of all labor activity
(100% reporting).


The grants accountant will distribute the appropriate forms to the
PI at the initial grant meeting. Cost share obligations must be met
within the project dates. At project close-out, the grants accountant
will track that the in-kind support has been documented with the
original form maintained in the grant file.


Page last modified March 31, 2010