SIMBA: Cost Share Guide for Research Offices

The purpose of this article is to provide information on cost share for Research Offices.

Note: This document is intended to serve as a guide and does not address all possible cost share scenarios. Please work with your FO to determine the final cost share set-up for your Grant.

There are two Internal Order (IO) types for Cost Share:

51 – Cost Share Pending (Cost Share that is being committed for an award that is pending). For this current fiscal year, Business Areas may not be using the Cost Share Pending process. 

52 – Cost Share Awarded (Cost Share that has been committed and the award is now fully executed).

A 51 IO type does not need to be in place in order to use the 52 IO type.  Please check with your financial officer to confirm if your area is using the 51 IO type.

Mandatory (M) or Voluntary Committed (VC) cost share are the only types of cost share permitted to be associated with a Grant.  Voluntary Uncommitted (VU) is not permitted to be associated with a Grant and must be tracked outside of GM. 

When only using the 52 IO Type:

1. When the proposal is awarded, the Research Office should request a 52 IO type, or as many as needed, on the account set-up tab of the IAF form when the SIMBA information is being entered into the tab.  Research Accounting will create the appropriate number of 52 IO types when creating the Grant.  Or you may use the GM Master Data template if you do not know at the time the award is being established.

2. 
   
   • The naming convention must clearly indicate whether the cost share is Mandatory or Voluntary Committed.  Therefore, the description must start with an M or VC.  Voluntary Uncommitted cost share is not permitted under the Grant.
3. 
   
   • When Central funds are being used, please refer to the Central Grant Process.  (Forthcoming from Ruth Weber)
4. 
   
   • Endowments should be discussed with your FO prior to any request being made for this IO/Sponsored Program set-up. Note: Endowment IOs should not be entered on the Account Set-Up Tab on the IAF. 
     
     • The Research Office will complete the Endowment 52 IO Request Template to request the creation of the 52 IO and send to their FO.
     • The FO will send the completed template to Endowment Accounting via BursarEndow@psu.edu.
     • Endowment Accounting will create the 52 IO and forward that information to Research Accounting.
     • Research Accounting will then create the Sponsored Program, making sure the IO is attached to the correct Grant.
     • Research Accounting will send a notification to the appropriate people.
5. 
   
   • Note: The purpose of the Grant (research, outreach, instruction) dictates the function of the cost share IO/Sponsored Program(s). 
     
     • Exception: Grant-in-Aid must stay in the Student Aid function (900000), and the subfunction would be the purpose of the Grant.

2. The Research Office should create and upload expense budget for each Cost Share Sponsored Program to establish budgeted funds using the GM Budget Upload Fiori Tile. In doing so, the FM budget will be automatically released, meaning that the FM budget will be reassigned from NOTRELEVANT to the designated Grant.  Note: No revenue should be budgeted on 52 IOs.

3. The Business Area Finance Office should ensure that FM budget exists in the correct cost object (Fund, Funds Center, Funded Program) before proceeding to the next step. This is the responsibility of the Business Area Finance Office.

4. Following your area’s business process, The Research Office should notify the appropriate individual(s) that the Cost Share Sponsored Program(s) has been set-up and is ready for spending.

Central Cost Share Funds

1. The Research Administration Office of the administering unit needs to create an IO in their business unit for funds to be collected. 

2. Working with the Unit FO, a request is emailed to Jon Hartzler (jph18), to include the lead PI name, home unit, grant title and OSP number, or a copy of the signature page of the central match approval form.  Jon will then provide the appropriate cost object and GL so the requesting unit can start the transfer.

3. If you have further questions, please reach out to your financial officer.

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