Cost-sharing occurs when a portion of the total cost of a sponsored project or program is borne by the University rather than the sponsor. Whether cost-sharing is mandated by the sponsor or volunteered by the recipient, the cost-sharing becomes a University commitment and may represent a legal, binding obligation of the University once the award has been granted. II.
Cost-Sharing Approval: Montclair State University limits cost-sharing to that which is mandated by the sponsor. In some instances of voluntary cost-sharing, the University may determine that costsharing may be an implied mandate by the sponsor necessary to the project’s funding outcome. Where cost-sharing is not required by the sponsor or necessary to ensure the competitiveness of a proposal, PIs and departments should refrain from making such commitments voluntarily. All proposed mandatory and voluntary cost-sharing arrangements must be discussed and approved by the responsible Chair and Dean before the proposal is submitted to ORSP. Prior to considering University cost-share on a sponsored proposal/project: a. the PI should confer with the Chair and/or Dean regarding a cost-share strategy to meet the sponsor’s requirements; b. the PI, Chair, and/or Dean may wish to contact ORSP to discuss the specifics of the proposal and to determine the sources of funds to meet this requirement; and c. all cost sharing commitments should be indicated and approved on the Routing Form prior to submission. Committed cost-sharing may create a legal, binding obligation by the University and must be treated similarly to any direct or indirect expenses, whether paid for by the sponsor or shared by the University. Cost-sharing of direct expenditures represents a commitment of departmental, program, or University resources from teaching or some other University activity to support a sponsored project or program.
III.
Source of Funds: The PI is responsible for identifying all sources of funds for cost-sharing of direct costs. The PI may not utilize funds from a federal award as the source of cost-sharing, except as authorized by statute. a. The PI may utilize funds from non-federal awards as the source of cost-sharing only when specifically allowed by the non-federal sponsor. b. Cost-sharing is typically funded by in-kind donation of academic year time/effort, fringe benefits, or other department designated funds. Cost-sharing may include some portion of indirect costs Chapter 2: Proposal Development
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