Avoid cost-sharing commitments when possible. Cost sharing:

• Is costly to the university
• Creates significant administrative workload
• Reduces cost recovery of both direct and indirect (F&A) costs
• Creates potential liability for the university

In cost sharing, the university commits resources to projects that are funded by external sources, usually in the form of contracts or grants. UCSD's cost-sharing resources can include:

• Staff time
• Cost of materials
• Equipment costs
• A combination of the above, plus other types of costs

The sponsoring agency does not reimburse the expenses associated with the cost-shared activity but is paid by the university or another party involved in the project, such as a subcontractor.

Cost-sharing commitments must be carefully recorded to meet the tracking and reporting requirements of federal regulations.

If you administer sponsored project funds, you should read and understand all of the related pages on the Cost Sharing Overview. These pages describe the policies and procedures that help the university manage cost-sharing activity.

If you have questions, contact Donna Smith, (858) 534-9607, or Choa Kang, (858) 822-4483.