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 following OPTIONAL steps. This is the responsibility of the Business Area Finance Office.

• Complete a JE to transfer actual revenue from the supporting cost object to the cost share IO. 
• Complete a budget transfer to move revenue budget from the supporting cost object to the cost share IO. 
• Note: Endowment revenue is NOT permitted to be moved to a cost share IO. 

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.

The following diagram shows an example of a grant with cost share.  Additional master data explanations are listed below:

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.
    
• Responsibilities on the Cost Share Sponsored Program(s):
  
  • • 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 in 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. 

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