Can the difference between a reduced F&A rate and our negotiated rate be used as cost sharing?

Question

Can the difference between a reduced F&A rate and our negotiated rate be used as cost sharing?

Answer

If the reduced rate is a result of a statutory limitation, then any F&A above the limitation may be considered unallowable and thus not eligible to be considered cost share. If the campus elects to charge a rate less than the negotiated rate, then the difference could be used to meet cost sharing if allowed by the sponsor.