OMB Circular A-21 does not directly address cost sharing as it is an integral part of OMB Circular A-110.  So why is it included in the A-21 training? -- Any time costs are shared, A-21 requirements and some special considerations must be examined to be sure that there is no double charging, and that the CAS or other provisions of A-21 have not been violated.  The brief discussion which follows will provide you with  a basic understanding of Cost Sharing.  The OMB Circular A-110 training program will cover this in more depth. 

General Criteria:
Before embarking on a course of cost sharing, certain criteria must be met.  Check and evaluate each of these criteria against your proposed budget, and then if you meet these criteria, then proceed further.

• Be sure that it is verifiable in accounting records.
• It must not be cost shared somewhere else.
• It must be necessary and reasonable
• Allowable
• Cannot come from another Federal fund
• Must be in the approved budget.

When is it Cost Sharing?
When it meets the above criteria, it must still be determined if it is truly cost sharing or just a fanciful idea as an afterthought so as to stretch the budget.  For it to really be treated as cost sharing it must be:

• In the award document
• In the proposed budget
• In the proposal narrative

So. . .  you meet all the above criteria and you are still considering cost sharing?  Then be sure that you: "proceed with Extreme Caution!"

Click the right arrow below to proceed