Government Contract for Cost Share Contributions Agreement is an agreement by which cost sharing is done based on the policy that all work conducted under governmental funds shall pay all expenses, both direct and indirect. The determination of the necessity of cost sharing for an activity is based on the programmatic and technical considerations and there is no set formula for cost-sharing.
According to the Government Contract for Cost Share Contributions Agreement, cost-sharing applies to the life of the agreement and the Agreement Officer must monitor the financial reports of the grantee to make sure that he is making progress towards meeting the required cost-share. Cost-sharing should be based on the purpose of an activity and the criticality of continuing an activity. As per the Government Contract for Cost Share Contributions Agreement the Activity Manager should take several considerations into account while making cost share decisions and should not use a set formula to determine the level of cost share.
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