Cost match, also known as cost sharing, is that portion of project or program costs not borne by the sponsor (generally the federal government). Cost sharing can be voluntary or mandatory (that is, required by means of a statute or law), and can take the form of either cash or in-kind contributions. It is CSU policy that each campus shall properly monitor and document any committed cost sharing in compliance with applicable regulations and agreements. In general, cost sharing shall be offered in a proposal only when it is a requirement of the request for proposal or the program announcement. Only charges that would be allowable as direct costs to the recipient grant are generally allowable as cost match.
There are two types of cost match:
- Cash match: Represents the recipient’s cash outlay set aside to be used solely for the purpose of funding a sponsored program.
- In-kind match: Represents the value of all noncash contributions, including services and property, provided by the recipient and/or non-federal third parties.
Cost match must be:
- Verifiable from university or auxiliary records.
- Necessary and reasonable to accomplish the project’s objectives.
- Identifiable in the approved budget when required by the prime sponsor.
- Provided during the project period.
Cost match may not be:
- Utilized as cost sharing on any other project.
- Federal funds except where authorized by federal statute.
- Earned income under the project except when expressly authorized by the prime sponsor.
Once a cost match is included and quantified in a sponsored project budget, it becomes a campus commitment and must be honored.
Related References: OMB A-21 Cost Sharing