1 On-Line Financial Management Workshops Leveraged Resources, Match & Intellectual Property June 2009

2 Fiscal Management Workshops: Leveraged Resources, Match & Intellectual Property Leveraged Resources, Match & Intellectual Property

3 Why should I care?  Larger portion of ETA discretionary grants require –WIRED Grants –Regional Innovation Grants –High Growth Grants –Community Based Grants –Youthbuild Grants

4 How do I know?  Legislation  Regulation  Grant announcement [SGA]  Agency Procurement Review Board –Particularly for unsolicited proposals

5 What is it really?  Cost Sharing = Match Leveraged Resources –Large term that encompasses all resources used for grant, not just the more narrowly defined match

6 Leveraged Resources Non-Match Reported on the Performance Report Portion reported on the ETA 9130 Examples: Other federal program costs Match above requirements Non-Match Reported on the Performance Report Portion reported on the ETA 9130 Examples: Other federal program costs Match above requirements Allowable Match Reported on ETA 9130 as recipient share Also reported on Performance Report Examples: Unclaimed Indirect Costs Donated Space Costs Grantee & Subgrantee Non- Match 30% Allowable Match 70%

7 Leveraged Resources  Allowable match –Non-Federal funds used for grant purposes  Non-match –Funds available for the project that don’t meet criteria for allowable match Other Federal resources provided by grantee or sub Other Federal resources provided by non-sub partner Allowable under cost principles but not grant program

8 Where are the Requirements?  29 CFR –State, local and Indian Tribal governments  29 CFR –Non-Profits, Hospitals, Institutions of Higher Education and Commercial Organizations

9 When responding to an SGA  Read carefully to determine whether requirement is: –Match or Leveraged Resources  Do NOT promise –to provide more Match than required  Include any excess over requirement –As leveraged resources

10Budgets  Only required match is shown on the SF- 424A  Do not include leveraged resources on the SF-424A  Amounts shown on SF-424 & 424A –Considered as match –If not met, may lead to disallowance or grant reduction

11 Proposal Narrative  For Leveraged Resources –Discuss as response to SGA element/factor –Cover nature, sources and amounts –Should also discuss how these complement match requirement if any exists May also discuss this relationship in the budget narrative Remember not to include in the budget  For Match –In addition to above Must include on SF-424a Budget form and budget narrative

12 Match (Non-Federal Share)  All contributions must be: –Spent on allowable activities –In accordance with cost principles –Comply with any grant program restrictions  Can’t be BOTH match & allowable grant cost  No administrative cost limitation

13 Cash Contributions  Additional funds or services provided & paid for by the grantee and/or subrecipient  3rd party cash contribution –To the grantee organization  Allowable services under the grant

14 Cash Match Examples  Personnel services –Grantee/subrecipient staff  Services  Equipment & supplies  Space  Paid for by grantee/subrecipient but –Not charged to grant funding source –Must be documented

15 In-Kind Contributions  Not paid by grantee or subgrantee  Allowable costs & services  Requirements for determining value –29 CFR 97.24(b)(7) –29 CFR 95.23(c-h)

16 In-Kind Contributions  Personnel services –Volunteers or paid non-grantee staff  Services  Equipment & supplies  Space  Valuation requirements –Must be documented

17 In-Kind Valuation  Personnel Services –Individual performing regular job activity Regular rate of pay + allocable fringes –Individual performing other volunteer services Rates consistent with recipient pay for like work or Rates of other local area pay for similar work Include reasonable amount for fringe benefits

18 In-Kind Valuation continued  Loaned equipment –Fair rental value  Donated equipment or supplies –Fair market value at time of donation or –Depreciation or use charges [when item has long term value]  Donated space use –Fair rental value of comparable space –Established by independent appraisal  Donated buildings and land –Depreciation or use charges

19 Why not full value of property?  Purpose of grant is for activities that: – Require the Use of equipment and/or space  Purpose of grant is not for: –Acquisition of buildings, land or equipment

20 Match Exclusions  Costs –Paid for with Federal funds –Used for other programs’ match –Construction/purchase of facilities –Charged to program income  Difference between earnings and costs

21 Non-Match Resources – What’s included?  Costs of additional allowable grant services/activities paid for by grantee and/or subrecipient with federal funds  Costs of additional allowable grant services/activities provided and paid for by non-subrecipient partner entity using federal grant funds  Costs of goods or services which benefit the grant program and are allowable under the OMB cost principles but restricted by the terms of the grant program

22Records  Source documentation –Books of account –Available for audit & review  Support for 3rd party contributions –Verifiable from subgrantee records or –Maintained by grantee –Methods used to value in-kind

23Reporting  ETA – 9130 Quarterly Financial Report –Line 10.j. – recipient share required –Line 10.k. – recipient share provided [includes all amounts in excess of requirement as well] –Line 10.l. – recipient share remaining [sets to zero when required match is met, i.e., never a negative number] –Line 11.a. – other federal share provided  Quarterly Narrative Progress Report –Describe all Match and Leveraged Resources provided including both those on the financial report and those which are not covered on the financial report

24Closeout  If required Match is not met: –Like amount of grant dollars will be unallowable –Reduce allowable grant expenditure by short amount –Non-compliance may result in closeout ID/FD process  When Leveraged Resources not met: –Grant Officer will determine penalty –Less likely to be unallowable costs –May impact future funding opportunities

25 Intellectual Property

26 What is it?  Tangible & intangible property  Examples –Training models –Curricula –Videos & other media –Technical assistance products

27 Who owns it?  The developer retains title or ownership  The Federal grantor (DOL) retains –Rights in distribution –This means that DOL may distribute in whole or in part, any such property developed with grant funds  Rights accrue only to the Department

28Requirements  29 CFR Copyrights  29 CFR Intangible Property –Provide Federal agency with rights to distribute, use, copy, etc. any materials developed with grant funds  Grant Agreement, Additional Provisions –Requires grantee to provide ETA with all materials, curricula, training models, etc. –Products posted on Workforce3One

29Examples  Automotive industry –General Service Technician curriculum  Health care industry –Virtual Caregiver career tool  Retail industry –“Go Retail” video  Building Trades industry –Heating, ventilation and air conditioning, and –Welding programs curricula

30 IP Issues  Distribution rights for products developed with match funds  For electronic media, issues of hosting  Confidential or proprietary information  Length of retention for products  Ability to sell or license products

31 Review Question 1  Question 1 –Other Federal grant funds may be used to meet a match requirement True or False

32 Answer Question 1  Answer –False. Federal funds may not be used to meet match requirements but may be considered as leveraged resources.

33 Review Question 2  Question 2 –Who has title to intellectual property developed with grant funds?

34 Answer Question 2  Answer —The developer of the intellectual property retains title. Only the Federal government has rights to distribute or use.

35Questions? If you have questions, please contact your Federal Project Officer