(A) Award sources
An award, as specified in the grant agreement, may be funded from endowment funds, operating funds, capital funds, or a combination thereof.
It is expected that the mix of funds requested from the three categories will be reasonably balanced and directly support the required growth plan.
(B) Limitation on use of funds
(1) The use of endowment funds may be limited to certain desired levels of positions.
(2) Capital funds for facilities and equipment and operating funds must be directly tied to endowed recruitment packages associated with the endowments or for direct support of enhancements to the research cluster that will increase the attractiveness of the research cluster to the new hires being sought.
(3) Funding for indirect costs may be budgeted up to a level of twenty per cent of the operating funds requested.
(4) Indirect costs are not allowed against endowment or capital facilities or equipment funds.
(5) Unrecovered indirect costs are an allowable form of cost share.
(C) Cost share requirement
(1) One to one ratio
The monetary value of the cost share commitment must be at least a dollar for every dollar of the award. The cost share committed may exceed the requirement for a one to one cost share ratio. However, that cost share ratio becomes a requirement of the grant agreement, regardless of the award amount and may not, at any time later, be lowered back to the one to one level.
The one to one cost share must be fulfilled within the five year project period.
(2) Cost share funding sources and limitations
(a) The cost share must include a commitment to provide a cash contribution to the endowment principal and/or additional salary for the new hires in an amount equal to the interest earned on the endowment over the five year project period.
(b) Cost share must be for allowable costs that are verifiable and auditable and consistent guidelines provided in the request.
(c) Cost share must be directly in support of the program plan rather than coincidental or related/similar allocations.
(d) Cost share must be necessary and reasonable to the project objectives.
(e) If the organizations have a published indirect cost rate, un-recovered indirect costs (the difference between twenty percent and the published rate) can be used as cost share. Without a published rate, this program will allow duplication of the twenty percent rate that becomes an allowable expense used as cost share. Only indirect costs not fully recovered from the requested state operating funds are eligible to be used as cost share.
(f) The expense of the cost share must take place during the project period. The cash cost share must be charged to resources of the lead applicant or collaborator and documented within the financial books of the lead applicant or collaborator. In addition to the requirements that may be set forth in the request for proposal, contributed equipment or space committed as in-kind cost share must have as its fair rental value a documented forgone charge or fee that otherwise would have accrued to the contributor for its use. This charge or fee must have otherwise been assessed and paid in the normal course of business with any other transaction.