To:            Liberal Arts Department Heads

From:        Ken L. Sandel & Howard Zelaznik

Date:         April 12, 2000

Subject:     New Cost Sharing Guidelines for Sponsored Programs

The Cost Sharing Guidelines for Purdue University have been issued to clarify the University’s internal definitions and tracking procedures to meet Federal Cost Sharing requirements.  In response to these guidelines the School of Liberal Arts have modified our internal procedures as follows:

1. The School will require that all cost sharing commitments meeting the definition of “mandatory cost sharing” be set up in a separate minor account in sponsored programs.  This will allow all cost sharing expenditures to be tracked and not confused with sponsor fund expenditures.

2. Only cost sharing commitments required by the sponsor or that will significantly add to the likelihood of funding should be included and committed to in the proposals.  Department heads should review and approve all cost sharing commitments prior to signing off on the proposals.

3. All cost sharing commitments should be identified in the budget by dollars not just %, unless adding the information about dollars is inconsistent with the sponsoring agency’s guidelines. (i.e. “During the course of this project I will devote 25% effort during the academic year.  This time is a total commitment of $30,000 towards this project”.)

4. Procedures need to be developed within each department to ensure that funds transferred out of department or school funds for cost sharing commitments be charged in accordance with the proposal.  These are firm commitments and must be fulfilled during the life of the project.

5. Course releases are normally not granted for salaries charged to cost sharing minors.

 Please contact one of us or your Business Manager if you have any questions regarding the attached guidelines or the internal procedures listed above.