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.

Only Mandatory (M) or Voluntary Committed (VC) are permitted to be associated with a Grant and must be tracked using IO Type 52.  Voluntary Uncommitted (VU) is not permitted to be associated with a Grant, cannot use IO Type 52, and must be tracked outside of GM. Additionally, IO Type 53, “Salary Cap Exceeded for Grants” is not permitted to be associated with a Grant. 

When only using the 52 IO Type

When the proposal is awarded, the Research Office should request a 52 IO type, or as many as needed, on the IAF’s Account Set-up tab when the initial 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 have all the information you need to request the 52 IO(s) at the time the account set-up form is submitted.  Before requesting the IOs, please refer to the “52 TYPE IO/SPONSORED PROGRAM Master Data Information” section of this Guide.  THE BUSINESS AREA ON THE COST SHARE IO MUST MATCH THE RESPONSIBLE COST CENTER. 

For Cost Analysis purposes, the naming convention is required to uniformly 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.

• • When Central Funds are being used, please refer to the “Central Cost Share Funds” section of this Guide.

• • 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.

4. 
   
   • 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.

The Research Office is responsible for the GM side of Cost Share which requires creating and uploading expense budget for each Cost Share Sponsored Program using the GM Budget Upload Fiori Tile.  Note:  The Research Office should not budget revenue on the GM side for 52 IOs.  The Expense Budget is required.  Please remember to use GM Document Types U2, “Unreleased Cost Share Budget” and “B2, “Cost Share Released” on the Excel Spreadsheet.

The Business Area Finance Office is responsible for the FM side of cost share which requires transferring an expense budget using the Budget Workbench/FM Budget upload.   It is at the discretion of the Business Area FO to transfer actual revenue and budget revenue. Endowment revenue is NOT permitted to be moved to a cost share IO.  One of the following GLs must be used for revenue.  In GM, they will be in the “Other Income” Sponsored Class:

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

The Research Administration Office of the administering unit must request an IO in their business unit for funds to be collected. 

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.

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

52 TYPE IO/Sponsored Program Master Data Information

The Research Office should contact the Department(s) to confirm the four following items that will be used for the cost share:  cost center, functional area, responsibilities, and fund.

• Cost Center: There can only be one Cost Center associated with an IO/Sponsored Program.  When selecting a cost center, please keep in mind the following:
  
  • Faculty Contributed Time:  If you have faculty contributed time outside of your Business Area (e.g. College), the cost share must be set-up as a SP in the Business Area of the Faculty member.  There are two options depending on the Chart of Accounts in that Business Area:
    
    • At a Central Business Area Level: (e.g. Dean’s Office of a College)
    • At a Department Level: (e.g. Institute, Department in a College)
• 
  
  • Functional Area: 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. Please be sure that you are using the correct Cost Center that is for the purpose of Grant-in-Aid (Cost Center XXXXXXXX40 or 41).

• 
  
  • Responsibilities on the Cost Share Sponsored Program(s):
    
    • Be sure you are using the SIMBA POSITION number or the SIMBA PERNR number.  You can use the HCM PERNR Details Report to confirm the correct numbers. The “Type” must match the “ID.”
    • PI – This responsibility is needed at the Grant Level (Effort Certifications look at the PI only).  In addition, the Cost Share IO must list the PI as the Person Responsible.
    • Co-PI – This responsibility must be listed on the Sponsored Program.
    • Cost Share Budget Approver – This replaces the Research Office Budget Approver.  Depending on what area “owns” the IO/Sponsored Program, it will be a person in either the administering unit or the Business Area providing the Cost Share.
    • Cost Share FO – This replaces the Financial Officer (FO) responsibility on the Sponsored Program Responsibilities Tab. This should be the FO in the Business Area supplying the cost share funds.
    • LDAP - This must be at the Sponsored Program level if there is no LDAP at the Grant level.

• Fund: No funds should be moved between different fund types. You can use one Sponsored Program if the source of funds is the same.  You must use several Sponsored Programs if the source of funds is different (e.g. Gift, Endowments, Unrestricted Funds, Tuition, ARL Funds). 

OTHER

Third Party Cost Share

• • Cash –A 52 IO type should be requested via the Office of Research Accounting.
  • In-Kind – The “Third Party Cost Share Commitment Letter” and “Third Party Cost Share Commitment Confirmation” must be uploaded at the Grant level. You do not need to create an IO to track this commitment. This should be tracked on a spreadsheet or however your business area directs.

When the cost share is being met by another Grant – For the foreseeable future, this should be tracked on a spreadsheet.  You may also utilize the notes sections throughout the Grant to help track.

Unrecovered F&A – For the foreseeable future, this should be tracked on a spreadsheet.  It is a planned enhancement for SIMBA.

Subrecipient Cost Share - For the foreseeable future, this should be tracked on a spreadsheet.  The GM Team can investigate a possible enhancement for SIMBA.

Unallowable Costs – Only M or VC are permitted to be under the Grant.  “Salary Cap Exceeded for Grants” IO Type 53 is not permitted under the Grant.

The following shows an example of a grant with cost-share.

SIMBA website