Cost Sharing

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Allowable payroll cost sharing at WSU

Payroll cost sharing must be verifiable from University records. Payroll cost sharing cannot be used or reported more than one time. If payroll cost sharing benefits more than one project, it should be prorated in an equitable manner among the projects (e.g., based on % of each project's cost to total combined project costs). Mandatory payroll cost sharing must be disclosed in approved budgets when required by the agency. Payroll cost sharing must be incurred during the award period. Once payroll cost sharing budget is approved, it is obligatory, whether it is voluntary, mandatory, or required payroll cost sharing.

Unallowable Payroll Cost Sharing must meet the same criteria as direct costs. In addition to specific costs that are unallowable according to Federal OMB Circular A-21, the following types of cost sharing are unallowable:

Federal to federal appropriations, contracts, and grants funded directly or indirectly through non-federal sponsors by the federal government are not allowable as payroll cost sharing for another federal project unless the source of payroll cost sharing was explicitly disclosed in both proposals and accepted as payroll cost sharing by the federal agencies or written approval was obtained from both federal sponsors. Federal contracts and grants may be used as payroll cost sharing on any non-federal contract or grant unless prohibited by either sponsor.

Unrecovered expenditures included in the F & A costs may remain only with prior approval by ORA.

Double counting means payroll cost sharing can only be committed and reported as payroll cost sharing once. If payroll cost sharing expenditures relate to two or more projects, the expenditures should be prorated in an equitable manner among the projects so that, in total, it is only used and reported once.

Expenditure transactions that have already taken place in a period prior to a project’s begin date are not normally eligible as cost sharing. For example: "cost sharing" the PI's effort during the previous summer for an award with a project begins date of October 1, would not be eligible as cost sharing.


Non-Compliance with Cost Sharing Requirements 

Failure to meet payroll cost sharing obligations or to adequately document payroll cost sharing can result in cost disallowances by sponsors. It is the responsibility of the principal investigator and the Office of Research to ensure University compliance with payroll cost sharing regulations and procedures.

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