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Cost sharing is a commitment of New York University (NYU) resources (e.g., personnel costs, Other Than Personnel Costs, or OTPS) for a sponsored award. Cost sharing is that portion of a project or program not reimbursed by the sponsor. There are three forms of cost sharing:
- Mandatory - which may be required by the sponsor as a condition of the award and becomes an obligation once an award is made.
- Voluntary Committed - which may be offered by NYU and becomes an obligation once the award is made.
- Voluntary Uncommitted – Faculty effort over and above that level which is committed and budgeted for in a sponsored agreement. It need not be included in the time and effort system and is not separately tracked.
Since cost sharing is a commitment of institutional resources that would otherwise be devoted to other University purposes, NYU discourages unnecessary and unsupported cost sharing.
Mandatory and voluntary committed cost sharing becomes an obligation to NYU once an award is accepted. Uncommitted cost sharing does not have to be tracked, documented, or reported; it is strongly discouraged by NYU.
Personnel effort proposed on an award is considered a commitment of time to the project. Federal regulations require NYU to compare the level of commitment with the actual effort expended on a project. The portion of the committed effort not charged to the award is considered voluntary committed cost sharing and it must be tracked.
Cost sharing requests must be submitted to the Office of Sponsored Programs (OSP) using the Cost Share Form. This form must be submitted for approval at the time of the proposal.
As a general rule, the contribution of Principal Investigator (PI) effort (whether academic year or summer) as voluntary committed cost sharing on federal awards is subject to the following NYU restrictions:
- Normally no more than 1% of PI’s effort is cost shared.
- Up to 5% of academic salary can be cost shared when no summer salary is being requested, or for 12-month appointments.
- Written approval from the Senior Vice Provost for Research is required for any voluntary cost sharing of PI effort above the cap.
Cost sharing must be tracked and documented using a cost share program chartfield set up by Sponsored Programs Administration (SPA).
Frequently Asked Questions
These are costs that were committed in the award budget, but not funded by the sponsor. Such costs cannot be billed to the sponsor and must be separately tracked in a cost share program linked to a department operating or discretionary chartfield. The same costs cannot be shared among multiple projects with cost share commitments. Please refer to the Cost Share Policy for a complete definition of the different types of Cost Share as well as University requirements associated with proposing cost share commitments.