Cost Share Tracking System (CSTS)

Allowable Cost Share

To be allowable as cost share, expenses must be

  • Allowable: Acceptable per the agreement, regulations, and public laws
  • Reasonable: A prudent person would have purchased this item and paid this price
  • Allocable: Can be assigned to the activity on some reasonable basis

If a cost cannot meet the above criteria, it is unallowable, no matter what it is for.

Types of expenses generally allowable for cost share

  • Faculty, student, staff effort (including fringe benefits) committed to the performance of a sponsored agreement
  • Equipment
  • Travel expenses
  • Laboratory supplies
  • Directly-related supplies and services
  • Items that do not meet the capitalization threshold
  • Administrative costs that were proposed and allowable as a direct charge, but were not funded by sponsor, yet were still incurred as expenses in the performance of the project
  • F&A costs associated with the cost shared direct costs, if approved by sponsor
  • Subrecipient cost sharing

Types of expenses not allowable for cost share

  • Items normally treated as indirect (F&A), such as department administration, space, utilities, library resources
  • Specific unallowable costs
  • Items cost shared on other projects
  • Items purchased outside the project period

Fund Sources that May be Allowable for Cost Sharing

Account purpose must allow for funds to be spent on the type of work being done on the project.

  • University funds
  • Unrecovered Facilities and Administration (F&A) costs
  • Third party contributions
  • Other sponsored projects (non-federal)

Fund Sources that are NOT Allowable for Cost Sharing

  • Funds from federal or federal flow-through sources (federal indicator on SFGT = Y; or, FFT code on award is not 1)
  • Agency funds (Account type = AG)
  • Funds from service enterprises (SFG = SERENT)
  • Funds from sales and service of auxiliary funds (SFG = SSAUX)
  • Funds from sales and service of educational activities (SFG = SSEDAC)
  • Funds from sales and service of educational activities with program income (SFG = SSEDPI)
  • Funds from other services that are rate-based activities (SFG = OSSSO)

Requirements for Cost Sharing Allowability

The Uniform Guidance (2 CFR 200) specifies that cost sharing is allowable under the following circumstances:

  • Verifiable from recipient's records
  • Not included as contributions for any other sponsored or federally assisted project or program (cannot be used twice)
  • Necessary and reasonable for proper and efficient accomplishment of project or program objectives
  • Allowable under applicable cost principles
  • Not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching
  • Included in the approved budget when required by the Federal awarding agency
  • Expended during the performance period

Supplemental content

Cost Share System Menu