02-11 Obsolete

NSF Institutional Cost Share Requirement
November 22, 2002

(Note:  This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors.  Please forward to others who have a need to know.)

This Important Notice is directed to those who submit research proposals to the National Science Foundation (NSF).

In accordance with Federal requirements, NSF requires that each grantee share in the cost of research projects resulting from unsolicited proposals (proposals that are submitted to NSF, but not as a result of a direct solicitation from the NSF).  According to the NSF Grants Policy Manual, the grantee will meet the statutory requirement by cost sharing a minimum of one percent on the total costs of all NSF-supported projects requiring cost sharing. (Generally, IU has met this requirement by cost sharing the effort of the Project Director). 

On the Summary Proposal Budget (NSF Form 1030), you must identify non-statutory cost share in Line M.  However, the statutory 1% minimum requirement is in addition to all Line M cost share.   

The statutory cost sharing referenced above is not required for grants that provide funds solely for non-research projects as determined by NSF.  For further details, see NSF Grant Proposal Guide, Section II-I.


1.     As outlined in Important Notice 03-4, for each award, the Fiscal Officer will be responsible for providing Contract & Grant Administration (C&G) with a departmental source account for cost share expenditures.  In order to avoid delays during award setup, the Fiscal Officer may choose to provide the source account at the time the proposal is routed for approvals. 

2.     The C&G Administrator will create a cost share sub account labeled “INST1” and establish a budget for tracking the institutional cost share. 

3.     The Fiscal Officer will be responsible for ensuring that allowable expenditures are charged to the cost share sub-account in a timely manner.  Salaries should be distributed to the cost share sub-account using the HRMS E-Docs Maintain Funding document. 

According to NSF policy, failure to provide the required cost sharing may result in termination of NSF grants, disallowance of grant costs and/or refund of grant funds to NSF. 

Important Notice 03-4
NSF Grant Proposal Guide: http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg.
NSF Grants Policy Manual: http://www.nsf.gov/pubs/2002/nsf02151/gpm3.htm#330.


Financial Management Services Phone:  (812) 855-4884 Email:  cgadmin@indiana.edu
Research and Sponsored Programs - Indianapolis Phone:  (317) 274-8285 Email:  rspinfo@iupui.edu
Sponsored Research Services - Bloomington Phone:  (812) 855-0516 Email:  resdev@indiana.edu
Research and University Graduate School Phone:  (812) 855-3963 Email:  stemarti@indiana.edu