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Revised Cost Sharing Agreements

 

Background

As a recipient of Federal funds, UCI is required to propose cost sharing in a manner consistent, and in accordance, with federal regulations. Therefore, it is important to understand UCI Research Policy - Cost Sharing on Sponsored Projects, which defines cost sharing and describes when cost sharing is appropriate and permitted. In addition, principal investigators, department administrators, chairs, directors, deans and vice chancellors should be aware that cost sharing commitments may arise during pre-award discussions with extramural sponsor representatives regarding project funding.

Please note that these guidelines do not supersede UCI Research Policy - Cost Sharing on Sponsored Projects.

Definitions

UCI Research Policy - Cost Sharing on Sponsored Projects defines certain terms, including the following, which are restated below for the convenience of the reader:

  • Cost sharing is any portion of the total costs of a project or program not borne by the sponsor. Cost sharing typically takes the form of in-kind resources (e.g., contributed project personnel effort) or cash.
  • Cost sharing commitment means any cost sharing that is offered and quantified anywhere in a proposal.

Changing and Revising Cost Sharing Commitments

Once UCI accepts an award that contains a cost sharing requirement or receives an award in response to a proposal that offered a cost sharing commitment, the cost sharing becomes a binding obligation on UCI. Therefore, when discussing project funding with extramural sponsors, principal investigators must take care not to increase cost sharing commitments previously offered or create cost sharing commitments where none existed.

Generally, when a sponsor is willing to fund at least 90% of the originally proposed project costs, the principal investigator is able to conduct the project as originally proposed, and within the funds awarded, without modifying any existing cost sharing commitment or creating a new cost sharing commitment. However, whenever a principal investigator agrees to conduct the proposed scope of work, but the sponsor is only willing to fund less than 90% of the originally proposed project costs, the principal investigator must decide whether to:

  • reduce the scope of work to coincide with the level of funding;
  • increase the cost sharing commitment or offer cost sharing as a means to make up the difference between the required project costs and the level of funding offered; or
  • pursue both a and b.

Any change to a previously offered cost sharing commitment or any new offer of cost sharing made to a sponsor, at any time, should be submitted in writing to the sponsor through UCI's Sponsored Projects Office.

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