Cost Sharing
Definitions & VCU Policy
In-Kind Cost Sharing: In-kind contributions are project-specific contributions of a service or product provided by an individual or organization, for which costs are not tracked in the official VCU accounting system. Examples of in-kind contributions include equipment, labor, and volunteer hours.
Mandatory Cost Sharing: Mandatory cost sharing is cost sharing required by a sponsor as a condition of an award. This requirement is always specified in the published description of the sponsor announcement. Although occasionally stated as a fixed dollar amount, the requirement is usually expressed as a percentage of the total project cost or the sponsor's share of that cost. Mandatory cost-sharing expenses must be identified for cost accounting purposes and reported to the sponsor in the project's financial report.
Salary Cap Cost Sharing: Salary cap cost sharing is cost sharing which occurs when the university proposes (or later assigns), effort by individuals whose salary exceeds a sponsor-imposed limit for individual salaries. It cannot be offered for mandatory, committed cost-sharing. Salary cap cost-sharing must be identified for cost accounting purposes.
Voluntary Committed Cost Sharing: Voluntary committed cost sharing is a cost-sharing the university may offer in a proposal to accurately reflect the total resources necessary to complete a project or to make a proposal competitive. This offer is included in the award directly or by incorporation. Voluntary committed cost-sharing expenses must be properly identified for cost accounting purposes.
Voluntary Uncommitted Cost Sharing: Voluntary uncommitted cost sharing is cost sharing that is not committed nor budgeted for in a sponsored agreement. It need not be tracked for cost accounting purposes nor reported to the sponsor.
Additional information regarding cost sharing can be found in the VCU Cost Sharing Policy
Cost Sharing in Banner
To establish a cost-sharing index in Banner, the department must submit the cost-sharing authorization form to the appropriate grant accountant in G&C, who will work with financial reporting to set up the cost-sharing index and budget in Banner. The budget may be entered as needed to ensure the index does not have a deficit.
Budget transfers from designated or gift funds (ledger 6) to the cost-sharing supplemental index may be on a per-project-period basis, but budget transfers of Educational and General (E&G) Funds may only be on a fiscal-year basis. It is preferable that transfers from gift funds be handled on a fiscal year basis. It is also preferable that cost sharing for a given fiscal year be identified at the beginning of the year, when possible.