Business Process

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Process Purpose

The University of Colorado Boulder receives annual support from the Colorado Higher Education Competitive Research Authority (CHECRA) which is used as cost share for various research projects. The type of cost share provided determines how these funds may be used and reported. These CCO procedures provide the guidelines necessary to comply with regulations and policies for CHECRA, research sponsors, and CU Boulder.

Background

CHECRA was established in 2008 via C.R.S 23-19.7-101 to support public research institutions in competing for large National Science Foundation (NSF) proposals, including, but not limited to, Engineering Research Centers, Materials Research Science and Engineering Centers and Science and Technology Centers. The General assembly declaration states:

During the peer review process for awarding federally sponsored research projects, the federal government often requires project applicants to provide state matching moneys or gives preference to applicants that demonstrate an ability to provide such moneys. Colorado, unlike many other states, does not have a dedicated source of matching moneys for federally sponsored research projects. Federal requirements and preferences for state matching moneys disadvantage Colorado public universities when competing against universities in other states that can access dedicated sources of state matching moneys. It is therefore necessary and appropriate for the state to provide a dedicated source of matching moneys that will allow Colorado public universities to compete on equal footing with out-of-state universities when applying for federally sponsored research projects and to create an authority to oversee the use of the matching moneys.

The Board of Directors for CHECRA allocates funds to serve as cost share from the State for proposals of Colorado public institutions of higher education for federal research funding. In 2015, the Board of Directors voted to focus primarily on large NSF awards while setting aside approximately 25% of the funding for joint projects of benefit to the State.

Cost share is funding provided by the university or third party (e.g. CHECRA) to support sponsored research and typically falls into three categories:

  • Mandatory Committed – required as a condition of the award at the time of proposal
  • Voluntary Committed – committed by the university at the time of proposal and is not specifically required by the sponsor
  • Voluntary Uncommitted – incidental support provided by the university that is over and above what was proposed and agreed upon for the project. This support is not included or quantified in the proposal budget or narrative.

The sponsor is the determining party for the identification of cost share as having been “committed.” If cost share is mandated by the sponsor, it must be committed in the proposal. The cost share included in the fully executed award is what is agreed to by both parties as having been “committed,” fulfills the requirement for the sponsor, and is the amount that must be shown to have been fulfilled in any sponsor required reports.

Sponsors may have guidance for the type of cost share required or allowed as well as specific reporting requirements (in some cases). This guidance may vary by project. It is critical to review sponsor agreements and policies to ensure the allowability of any type of cost share. For example, NSF has specific mandatory cost share requirements for certain programs or projects yet generally prohibits voluntary committed cost share (NSB-09-20). See additional NSF cost share guidance in their January, 2013 FAQ’s.

CU Boulder has used CHECRA funding for all three categories of cost share. Similar to other types of cost share, the management of CHECRA funds is a joint effort of CCO and OCG.

Pre-award Procedures

The Research & Innovation Office (RIO) makes the request for funding to CHECRA through the Vice Chancellor for Research & Innovation. Funding is at the discretion of the CHECRA Board of Directors. When the commitment has been made and communicated to RIO, RIO then completes CHECRA’s Request for Payment Form. CHECRA Request and Reporting Form

Process for Requesting CHECRA Funding

The process for requesting and obtaining CHECRA funding varies depending on which of the categories the project falls in.

Category 1 (Center-type Projects): CHECRA Board approval required before a proposal is submitted to the funding agency.

To request cost share for a proposal being submitted to the National Science Foundation or another funding agency, the Board member representing the institution (or another individual designated by the institution) provides to all Board members a summary of the proposed research; the amount of the requested cost share; and the benefits the award would bring to the institution and to the state. The CHECRA Board members vote within 30 days. If a majority of Board members vote in favor of the cost share, the Board secretary will provide a letter signed by the Chair to the institution for submittal with the proposal.

If the proposal is successful, the institution will provide a copy of the award documentation to the Department of Higher Education and the project is placed on the funded list for annual cost shares.

Category 2 (MRIs): Board approval of individual proposals not required.

All research institutions typically submit one or more proposal for MRIs each year. The CHECRA sets aside at least $300,000 annually for MRI cost shares. At each CHECRA annual board meeting, the board will review and consider all successful MRI proposals the previous year and allocate the $300,000 among those awards,

Category 3 (Institutes and Consortia): Board approval of the Overarching Institute/Consortium Required Prior to funding cost share for sub-awards.

If one or more Colorado institutions become part of an institute or consortium with sub-awards, the CHECRA Board will vote first on the institute’s/consortium’s eligibility for CHECRA funding. The Board will set an annual limit that will be provided as cost share (either to a single institution or allocated among multiple participating institutions) for sub-awards that the institution(s) receive.

Cost Share Commitment

When RIO receives notification of a cost share commitment by CHECRA and the amount to be received, that information is relayed to OCG. OCG and RIO review the initial proposal record for the project the CHECRA cost share is intended to support to determine which type of cost share the funds are intended to cover. In preparation for the receipt of the actual payment, OCG then creates an Administrative Record in InfoEd for the CHECRA funding received as follows:

CHECRA funds received for Mandatory Committed Cost Share:

  1. The sponsor is listed as the Colorado Higher Education Competitive Research Authority. The title of the record begins with the preface: “Mandatory Committed Cost Share for…” The number of the original proposal committing the cost share is inserted followed by the title of the original proposal.
  2. The original cost share addendum that was created for the original proposal is uploaded as an attachment in the Administrative Record. If a revised version of the cost share addendum is created to account for adjustments in the actual funding received, the most current version is attached.
  3. Any other documentation to or from CHECRA is also attached to the record, such as the invoice to CHECRA sent by RIO and any documents accompanying the check paying the funds.

CHECRA funds received for Voluntary Committed Cost Share:

  1. The sponsor is listed as the Colorado Higher Education Competitive Research Authority. The title of the record begins with the preface: “Voluntary Committed Cost Share for…” The number of the original proposal committing the cost share is inserted followed by the title of the original proposal.
  2. The original cost share addendum that was created for the original proposal – or its revised version - is uploaded as an attachment in the Administrative Record.
  3. Any other documentation to or from CHECRA is also attached to the record, such as the invoice to CHECRA sent by RIO and any documents accompanying the check paying the funds. 

CHECRA funds received for Voluntary Uncommitted Cost Share:

  1. The sponsor is listed as the Colorado Higher Education Competitive Research Authority. The title of the record begins with the preface: “Voluntary Uncommitted Cost Share for…” The number of the original proposal for which the cost share will be used is inserted followed by the title of the original proposal.
  2. No cost share addendum is required in cases of voluntary uncommitted cost share.
  3. Documentation sent to or received by CHECRA is attached in the Administrative Record.

In cases where the amount received from CHECRA is different than the amount expected, or when the allocation of CHECRA funds changes at receipt, a revised Cost Share Addendum will be provided by the awarded unit for cost share that was committed at the proposal phase.

Application of F&A

F&A will be applied to CHECRA funding received according to the University’s Cost Sharing Policy. In cases where F&A was included in the original Cost Share Addendum but is deemed not applicable to the specific project, a Cost Share Waiver Request will be submitted by the awarded unit for consideration.

Post-award Procedures

Using, accounting for, and reporting on CHECRA Third Party Cost Share:

  1. Confirm the type of cost share funded from CHECRA:
    1. Mandatory Committed, Voluntary Committed or Voluntary Uncommitted
  2. Review sponsor agreement and/or policies to ensure allowability of cost share for the applicable projects:
    1. Review expenditures to ensure they align with the purpose outlined in statute and the CHECRA Board policies as summarized above. 
    2. For both Mandatory and Voluntary Committed cost share expenses charged must follow sponsor allowability and requirements and university policies and procedures. 
    3. For Voluntary Uncommitted cost share expenses charged must follow university policies and procedures.
  3. Reporting Requirements:
    1. 3rd party Mandatory Committed or Voluntary Committed Cost Share activity must be reported with an expense purpose code (EPC code) of 1200 (research) and charged F&A. 
    2. 3rd party Voluntary Uncommitted Cost Share activity must be reported with an EPC code 1100 (instruction) and not charged F&A. This is separate funding that will be used to support research projects but is not research that is separately budgeted and accounted for.
      Note: While most uncommitted cost sharing does not require sponsor reporting, CHECRA funds require a report back to the Authority on how the funds were spent.
      Note: CHECRA does not require financial reporting. The required technical reporting is provided by the PI with the coordination of RIO and the OCG Reporting Specialist, using CHECRA’s specified form. CHECRA Request and Reporting Form 2021
  4. Extensions:
    1. If there is an extension to the project period on an award for which CHECRA funds are applied to, the period of use of the cost share from CHECRA must also be extended.

If there is an extension to the project period on an award for which CHECRA funds are applied to, the uncommitted cost share from CHECRA may not require an extension unless required by the sponsor.​

Resources

Business Process Profile

  • Audience: Campus Controller’s and Office of Contracts and Grants
  • Process Owner: Director of Research Financial Services and Deputy Director of the Office of Contracts and Grants
  • Effective Date: January 13, 2022