Cost Share Close-Out

Cost sharing is a commitment of NMSU resources or funding that supplements externally funded projects. An agency may require an institution to contribute to the cost of a research project, or the institution may choose to offer to cost share a portion of the project cost to make its research proposal more attractive to the agency.NMSU tracks cost share in Banner with the distinction of mandatory or voluntary. Voluntary cost share involves NMSU donating direct funding to an award without being agency-imposed per the agreement. If an agency requires/mandates NMSU to cost share a portion of an award, NMSU will consider this type of cost share to be mandatory.

Section 2 CFR 200.306(a) of the Uniform Guidance (UG) includes the following provision for cost sharing which should limit “voluntary” commitments by institutions:

“Under Federal research proposals, voluntary committed cost sharing is not expected. It cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is both in accordance with Federal awarding agency regulations and specified in a notice of funding opportunity.”

The UG further adds the following guidelines:

  • Must conform to NMSU’s policies and federal policies and be verified through documentation
  • Must meet the same requirements as direct-charged project costs
  • Becomes part of the agreement when included in the proposal

Sources of cost sharing include:

  • Cash
  • Faculty/research effort
  • Tuition
  • Equipment
  • Material and supplies
  • In-kind and third-party contributions
  • Waived F&A recovery, with agency and Vice President of Research approval

The UG states that cost share or matching funds and all contributions must be verifiable from the non-federal entity’s records. NMSU has defined Banner funds that have a second digit of “5” (X5XXXX) in order to track cost share expenditures. This allows SPA to track the amount of cost share under the applicable G# in Banner for reporting and invoicing purposes.

SPA completes a cost share close-out process as part of the finance month-end close to transfer out the expenditures from the restricted cost share fund onto the unrestricted index(es) designated as support for the required cost share.

Departments must provide SPA with an unrestricted index, and allocation details if applicable, at the time of submitting an NFNR to create a cost share fund. If SPA does not receive an unrestricted index, the default index of the department will be used on the day of closing.

Information on the form needed to report the unrestricted index(es) for a cost share fund close-out is provided below.

  • Cost share maintenance records are created and updated based on information supplied on the Cost Share Close Out form for the fund
  • Form is used to request or change where a cost share fund is closed out to
  • For a new cost share fund, the form should be attached to the New Fund Request Form (NFRF)

The JV created will credit the restricted cost share fund by the total amount of expenditures incurred during the month and the debit will be applied to the unrestricted index provided on the Cost Share Close Out form.

If a change is needed to an existing cost share close-out fund, an updated form must be completed and sent to The change will be made during the next close-out period.

Please note if it is determined that cost share expenditures posted need to be transferred to a different unrestricted index than the one provided, the department will be responsible for completing the JV. It is recommended to review the cost share close-out indexes provided to SPA to ensure accuracy and eliminate the need to create manual JV corrections.

^ Back to Top