Match& Inkind Donations:

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Session Objectives

Gather and retain proper documentation

Understand allowable, allocable, necessary & reasonable costs

Learn about types and examples of match

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Effective Financial Management

Written Policies & Procedures

Supporting Documentation

Cash Management & Budgetary Controls

Internal Controls

Accurate Information

Efficient Accounting System

4

Major audit

findings

Negative Publicity

Funding is delayed, withheld, or repaid

Mission is not achieved

Ineffective Financial Management

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Talking Technical – Definitions to Know

Portion of program costs not paid by the CNCS (Federal Share)

Portion of the program that is paid for by the CNCS grant funds

Total allowable costs incurred by grantee and the value of contributions made by 3rd parties in accomplishing the objectives of the award during the project period

Federal Share

Project Costs

Grantee Share

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Cost Principles: OMB Circular A-21: Cost Principles for Educational Institutions OMB Circular A-87: Cost Principles for State, Local, and Indian

Tribal Governments OMB Circular A-122: Cost Principles for Non-Profit

Organizations

Administrative Requirements: OMB Circular A-102: Grants and Cooperative Agreements with

State and Local Governments OMB Circular A-110: Uniform Administrative Requirements for

Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations

Audit Requirements: OMB Circular A-133: Audits of States, Local Governments, and

Non-Profit Organizations

OMB Requirements

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What are we talking about? Portion of program costs not paid

by the CNCS

Value of non-cash good or services contributed by organizations or individuals

May be in the form of real property, equipment, supplies and other expendable property

Value of goods and services directly benefiting and identifiable to the project or program

In-KindContributions

Cost Sharingor Matching

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Sustainability: The Ultimate Goal

NewProgram/Project

MatureProgram/Project

GranteeShare

CNCSShare

CNCSShare

GranteeShare

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Allowability of Match Costs

To be allowable under a grant, costs must meet the following criteria: Be reasonable and allocable for the performance of the award Conform to grant award limitations or cost principles Be consistent with policies and procedures that apply to both federally

financed and other activities of the organization Be given consistent treatment Be in accordance with Generally Accepted Accounting Principles (GAAP) Not be included as a cost or used to meet cost sharing or matching

requirements of any other federally financed program Be adequately documented

Cost Principle Requirements

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Grantee Cost Share or Match Cash and in-kind contributions are accepted as part of the grantee’s

cost sharing or matching when contributions meet all of the following criteria. Are verifiable from the grantee's records Are not included as contributions for any other federally-assisted project or

program Are necessary and reasonable for proper and efficient accomplishment of project

or program objectives Are allowable under the applicable cost principles Are not paid by the Federal Government under another award, except where

authorized by Federal statute to be used for cost sharing or matching Are provided for in the approved budget Conform to other provisions of OMB Circulars

Administrative Requirements for Grants

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Examples of Match

Salary

Benefits

Training

Travel

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Documentation Examples

Signed timesheets (i.e., time & activity reports or personnel activity reports) with supervisory approval

Letters from partnering organizations that state specific hours and days that program support and oversight was provided with the value of the time

Salary data from fiscal/payroll office from partnering organizations that are providing inkind wages

Salary

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Time & Activity Reporting – Summary

All salaries and wages charged to grants must be supported by signed timesheets

Exceptions: State, Local and Indian Tribal Governments must

comply with requirements of OMB A-87

Educational Institutions must comply with requirements of OMB A-21

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OMB A-122 requirements of documentation for timesheets:

Must reflect an after-the-fact distribution of the employee’s actual activity

Must account for the total activity of each employee

Must be prepared at least monthly and must

coincide with one or more pay periods

Must be signed by the employee or supervisor

having first hand knowledge of employee activity

Time & Activity Reporting – OMB A-122

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Time & Activity Reporting – OMB A-87

The estimates produce reasonable approximation of the actual activity performed

Quarterly comparison to actual activity is performed

Budget estimates are revised at least quarterly to reflect changed circumstances

OMB A-87 for State, Local and Indian Tribal Governments:

Budget estimates do not qualify as support for expenditures, except on an interim basis, provided that:

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Documentation Examples

Insurance receipts

Cost allocation plan

Paid invoices

Benefits

Fringe benefits are allowable, provided such costs are absorbed by all organization activities in proportion to the relative amount of time or

effort actually devoted and consistently offered

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Documentation Examples

Authorization/reimbursement requests

Receipts/invoices

Per diem rates (applicable for region)

Mileage calculation

Reconciliation of advances to payments

Travel

Travel costs must not exceed charges normally allowed by the organization in its regular

operations based on the organization’s written travel policy

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Documentation Examples

Agenda

Course description, cost

Sign-in sheet (if in-house)

Consultant/Trainer agreement

Paid invoices

Training

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So Many Types of MatchMinimum matching amount the law requires a grantee to provide

Minimum matching amount established by CNCS regulations that may be higher than the statutory requirement

Amount of match grantee provides based on approved budget, budget narrative, and program narrative contained in grant application; may be greater than statutory or regulatory required match

Statutory

Regulatory

Budgeted

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AmeriCorps Match Requirements

Statutory requirements:

AmeriCorps Budget Section II

Member support match must be minimum 15% non-federal cash These funds are a required share of the Member living

allowance

AmeriCorps Budget Sections I & III

Operating expenses are a minimum 33% of total operating costs

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Senior Corps Match Requirements

Retired Senior Volunteer Program (RSVP) 1st Year: 10% of total funds 2nd Year: 20% of total funds 3rd Year and after: 30% of total funds

Foster Grandparents Program and Senior Companion Program 10% of total funds Volunteer expense match should not exceed 20% of

total funds

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Learn & Serve Match Requirements K-12

1st Year: 10% of total funds 2nd Year: 20% of total funds 3rd Year: 30% of total funds 4thYear and after: 50% of total funds

Higher Ed - 50% of total funds

State Education Agencies (SEA) - 50% of total funds

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Examining New “Overall Match” Requirement 2521.60(a) – Regulatory Match: Grantees must meet minimum requirements as shown in

table below up to 50% overall match $1 dollar for every CNCS $1 - by year 10 (chart)

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Minimum Member Support

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

Minimum Operating Costs

33%

33%

33%

33%

33%

33%

33%

33%

33%

33%

Minimum Overall Share

N/A

N/A

N/A

26%

30%

34%

38%

42%

46%

50%

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Finding Your Match

Government-wide, with few rare exceptions, grantees cannot use other Federal funds as match

Cash: – Donations– Non-federal income– State appropriations– Foundation grants or

corporate contributions

In-Kind Contributions:– Value of donated services

and/or donated goods

Under utilized Indirect Costs:

– The portion of indirect costs not allowed by CNCS in Federal Share

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Volunteer Exception For Match

Do not count as match:

The value of direct community services performed by volunteers

Do count as match:

Services that contribute to organizational functions Count services such as accounting, training of staff or

volunteers that are elements of the grantee’s approved budget

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Documenting In-Kind Match

Document in-kind contributions to show:

What service or goods were obtained

Why transaction is allowable for grant purposes

The value of the contribution

How it is traced back to source documentation

When it was provided

If audited, a grantee may be required to get full supporting documentation from all donors if not available during the audit.

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Recording In-Kind Match Maintain adequate documentation to support amounts

claimed as match

Maintain same documentation for both CNCS Federal share and for grantee’s share

Documentation must meet same standards as other expenditures

Record donation and valuation of item in detail

Enter into the general ledger as income and expenditure

Failure to enter match contributions into general ledger requires a formal explanatory policy and separate spread sheet accountability of receipt and use

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Statement of Financial Accounting Standards (SFAS #116) sets the standard for recording in-kind contributions in the general ledger:

Contributed services are recognized in the financial statements if the services received:

Create or enhance non-financial assets

Requires specialized skills provided by individuals possessing those skills

Would need to be purchased if not provided by donation

Why Record In-Kind in General Ledger?

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Valuing In-Kind Match Use Fair Market Price

Consider what it would cost to obtain similar good or service

Value of donation should be placed by the donor

Review donor’s letter or form to ensure the value is reasonable

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Documenting In-Kind Contributions• Document the donor’s basis for determining value of personal services, material, equipment, building, and land

• Obtain written acknowledgement from the donor to include:

Date and location of donation Detailed description of item/service Estimated value of contribution, how value was determined, who made the determination Was the contribution obtained with Federal funds Name and signature of donor

Keep a copy of the receipt in your files

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The ABCD Tutoring Program 1299 N Main Street, Suite 110, Great City, Good State 00000-1234, (800) 555-1212, Fax 321-1234

Date of Contribution

Description of Contributed Item(s) or Service

Purpose for Which Contribution Was

Made

Real or Approximate Value of Contribution

How Was Value Determined? (i.e. Actual,

appraisal, fair market value)

Who Made This Value

Determination?

Was Contribution Obtained With or

Supported By Federal Funds? (If so, indicate

source)

Name of Contributing Organization/Agency/Business/Individual:

Address of Above Contributor: Phone #:

Printed/Typed Name of Contributor’s Authorized Signee: Title:

Signature of Authorized Signee: Date:

In-Kind Contribution Form

Sample In-Kind Contribution Form

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In a Nutshell . . . Summarizing Match and its Supporting Documentation:

Familiarize all staff with cash and in-kind match documentation requirements

Ensure supporting documentation relates directly to program funded by the CNCS grant

Establish documentation for expenditure requirements to ensure costs are allocable, allowable, necessary, and reasonableness

Ensure adherence to grant provisions and OMB Circulars

Maintain records and establish a written record retention policy

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Activity & Session Wrap-up