III.  Types of Cost Sharing

There are three types of cost sharing

1. Direct: The university may commit funds directly to costs of a project.
   
2. Indirect Cost Reduction:  Indirect costs are real and tangible costs of conducting instruction and research. The university agrees to reduce the indirect rate on particular projects.
   
3. Time and Effort: The university authorizes an individual to work on a project as part of their university paid duties.  The approval process documents the direct cost of  faculty and staff contributions of time and effort. Documentation is required when cost sharing (university funded time and effort) is contributed on a project.

All cost sharing agreements must be approved in advance of the submission of the grant proposal through the grant approval process.  Any cost sharing arrangements which are proposed after the submission of the grant proposal require approval before contracts are signed.

Approval processes will differ based on the funding source:

1. Cost sharing from funds budgeted and approved by the Provost for that purpose requires the approval of the organization manager. 
2. Cost sharing from all other sources requires approval by the Provost and the Vice President of Finance and Treasurer with notification to the Associate Provost for Research and the Budget Office.

IV.  Agreements

All cost sharing agreements must be in writing and a copy filed with the Office of Grants and Contracts to ensure appropriate accounting treatment.

V.  Procedures

The Office of Grants and Contracts sets the accounting practices which record all cost sharing arrangements.