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Policy & Procedure
Policy Title :
Cost Sharing Policy
Policy Number :
V. 7
Responsible Party :
Research
Effective Date :
21/05/2015
Revised Date :
_______________________

Purpose

The purpose of the Cost Sharing policy and procedures is to ensure that the cost sharing proposals, accountability and reporting are consistent with the requirements set by PMU and the sponsor.

Statement :

Prince Mohammad Bin Fahd (PMU) recognizes the importance of an active research community, thus on occasion; PMU will share the cost of sponsored research, programs, and projects.

PMU recognizes that the contributions of the sponsors may not always be sufficient to satisfy the expenses of the sponsored research, programs or projects, and it also recognizes the encouraging and facilitating force of having a policy that share costs with sponsors in certain occasions.
Therefore, the University (PMU) establishes a policy to share costs in certain occasions in order to capitalize on all potential sponsored research, programs and projects. This policy will enable the University (PMU) to encourage sponsors and to demonstrate its commitment to research and creation of knowledge.

Similarly, the policy will enable the University (PMU) to effectively compete with other Universities for limited funded research, programs and projects.

Cost sharing is that fraction of the overall cost of sponsored research assumed by the University or the Department. In other words, it is that element of the research cost not borne by the sponsor. For example, if the sponsor contributes SAR 300,000 for a project with a total cost of SAR 350,000, the University (PMU) may decide to cover the deficiency (SAR 50,000). The SAR 50,000 is cost shared.

The University is aware of the potential financial implications of cost sharing and has therefore identified and defined the types of allowable cost and forms of cost sharing in the policy content section.

Policy Content

The University (PMU) in regards to cost sharing has identified key cost components as follows:

  1. Project costs: This includes all allowable costs for the research, program or project. Allowable costs are all reasonable and directly related costs of the project. Project costs must be justified with proper Cost sharing: The fraction of cost of research, program and project assumed by the University (PMU). An evidence of a proposal, approval, and budgetary steps for cost sharing must be maintained and verifiable.
  1. Cash or in-kind contributions: This includes cash or in-kind contributions provided by the recipient or a third party, of funded research, program, or project. The value (market value) of the in-kind contribution must be ascertained and proper accounting record maintained.

In addition to the above cost segregation scheme, PMU in line with the prevailing standards has categorized cost sharing into the following groups:

  1. Mandatory cost sharing: This is the cost sharing mandated by the sponsor. Certain sponsors may require the University (PMU) to contribute a certain amount in order to be eligible for the funded research, program or projects.
  2. Voluntary cost sharing: This includes resources or effort voluntarily contributed by the University (PMU).
  3. Voluntary committed cost sharing: This includes resources or efforts voluntarily committed and budgeted for and are part of the agreement of the funded research, program and projects.
  4. Voluntary uncommitted cost sharing: This includes costs that are above the voluntary committed cost sharing.

Benefits

Cost sharing accrues benefit to all the stakeholders within the academic environment and beyond. Potential benefits include but are not limited to the following:

  1. It will encourage students to apply for sponsored research, programs and projects for their final year thesis or projects
  2. It will encourage the faculty to apply and compete for funded research, programs and projects
  3. It will encourage sponsors to advance their interest through research, programs and projects.
  4. It will encourage the sponsors to fund research, programs and projects.
  5. It will increase the overall output of research, programs and projects of the University (PMU).

Implementation

The implementation of cost sharing policy is facilitated through the office of the Deanship of Research Development, the Office of Sponsored Projects and PMU Management. The following steps are necessary for effective implementation.

  1. The need for cost sharing should be identified
  2. Cost sharing proposal should be submitted, along with detailed cost break-down
  3. The Deanship of Research and Graduate Studies, the Office of Sponsored Projects and PMU Management will assess the feasibility and the potential of the proposal
  4. Pre-approval may be obtained, with any request for additional information
  5. The proposal may be accepted or rejected after a careful deliberation on the merits of the proposal and the cost sharing commitment.
  6. If approved, budgetary details for accounting purpose must be prepared, and a special general ledger account must be maintained to keep track of cost for financial reporting purpose
  7. Disbursements related to cost sharing maybe linked to the progress of the research, programs and projects. For example, disbursement dates may set in advance to coincide with specific achieved milestones
  8. A system to monitor and avoid cost over-runs
  9. Final reporting of the cost sharing at the completion of the research, program or project.

Roles

The Deanship of Research development has a role of fostering research and research related issues within the University. This includes, animating all stakeholders into creating a healthy research community, with an expectation of incrementally contributing to knowledge creation; enriching the academic environment, and meaningful contribution to society at large through value-added research, programs and projects.

The role of the Office of Sponsored Projects at PMU is to

  1. Provide assistance in interpreting application guidelines and sponsor requirements
  2. Offer consultations with faculty/staff seeking external funding
  3. Assist faculty with proposal development, including ensuring budgets are appropriate, and application forms are complete and correct
  4. Manage electronic application submission processes
  5. Ensure proposals meet PMU approval requirements
  6. Provide institutional approval for all proposal submissions
  7. Track proposal submissions, awards, rejections and resubmissions

Responsibilities

  1. The Deanship of Research Development is responsible for all research related issues of the University (PMU)
  2. The Office of Sponsored Projects is responsible for assisting the researcher in all related issues pertaining to the applications for external funding.
  3. Any other Committee established for overseeing research and research related efforts

Procedures

Establishing and implementing cost sharing is accomplished through a sequence of events as follows:

  1. Established cost sharing policy
  2.  Proposal for cost sharing, initiated by the University, recipient or the sponsor
  3. Proposed cost sharing evaluated
  4. Approval or Rejection process
  5. Budgetary planning
  6. Funding
  7. Reporting