University of Southern California


Cost Sharing Reduction

Whenever cost sharing has been approved and budgeted as part of a funded project, the university is obligated to provide the cost sharing as part of the total costs of the funded project. Just like the sponsor’s funds, the cost sharing is tracked and reported upon and is subject to audit.Occasionally, however, the total costs required to accomplish the goals of a sponsored project might change from what was proposed and awarded, and the Project Team may wish to therefore reduce its cost sharing commitments.

In such cases, the sponsor may need to be consulted to determine whether: (a) the reduction can be applied to the university’s committed cost sharing; (b) the reduction must be applied proportionally to both the university’s committed cost sharing and the sponsor’s awarded funds; or (c) the sponsor’s share of the total project cost must be reduced. Routing a Post-Award Change Request will alert DCG to the need to determine whether the reduction in cost sharing is allowable and whether prior sponsor approval is required.

Note that a Post-Award Change Request is not required for reductions in voluntary uncommitted cost sharing because it is not considered part of the financial terms and conditions of the award.

Documentation Required –All requests must include: (1) the name and Department ID of the unit that is reducing its cost sharing commitment; (2) the new cost sharing amount; (3) a revised cost share budget; and (4) a revised scope of work, if appropriate, or an attestation that the scope of work will not change.

Approvals Required – (1) Principal Investigator; (2) Dept. Chair/Unit Head or designee; (3) individual authorized to make cost sharing commitments on behalf of the unit that is reducing cost sharing. Sponsor approval will likely also be required; please consult the award terms and conditions.