POLICIES & PROCEDURES
Cost Sharing Account Numbers/Shadow Accounts,  99-02
November 9, 1998

Purpose:
This policy is being implemented to establish a more consistent and detailed way to document mandatory cost sharing required as part of sponsored agreements. This will improve the University's compliance with Federal OMB Circular A-21 and Cost Accounting Standards.

Background:
Federal regulations require the university to be able to document its cost sharing in connection with all sponsored agreements. A recent review of University methods concerning this area indicated the need for a more systematic way of recording mandatory cost sharing. This change will only affect those awards for which cost sharing is listed as part of a Sponsored Program Award.

Policy:
Effective as of the date of this letter, all sponsored research awards with mandatory cost sharing will be given a corresponding and unique educational and general account or unique sponsored research facilities and administrative return account, to record all costs identified as part of the proposed cost sharing. The accounts that are affected will be identified by the Research Accounting. All costs that are being claimed by the department as part of the required University cost share must be booked to this special "shadow account".

Procedures
The Contracts and Grants office will work with the University Budget Office to establish unique numbers for those awards that are identified as having mandatory cost sharing. The Contracts and Grants office will notify the department of the new account number. This account number should be used to record all transactions that will be claimed as cost sharing. The total expended at the end of the project should agree with the agency requirements. If you have any questions on this process please contact Sponsored Programs or Research Accounting.

Send comments to Camille Coley or Penny Ashwanden

Page updated July 2006 by Dianne Parkerson; Names updated July 2008