Documentation, Cash & In-Kind Match

Session Objectives Gather information on proper documentation Allowable, allocable & reasonable costs Gain knowledge of types of match

Defining Source Documentation Reasonable, allocable, allowable Conform to grant/contract limitations Treated consistently In accordance with Generally Accepted Accounting Principals (GAAP)

Finding Source Documentation INTERNAL –Time and activity –Purchase orders –Compliance, financial reports to grantors or grantees –Ledgers: cash receipts, payroll disbursements

Finding Source Documentation EXTERNAL –Bank statements –Vendor invoices –Grantor/grantee report –Matching reports –In-kind contribution form

Classifying the Information Supporting documentation: –1. What is the service obtained? –2. Why is the transaction allowable? –3. Where is the source documentation? –4. What is the value of the contribution?

Why Source Documentation? To track incoming information To review information To provide evidence of accomplishments To document and audit

Maintaining Source Documentation Filing Cabinet –In grants management office? –In accounting department? –In Executive Director’s office? By vendor? Alphabetically? By month? By grantor/grantee?

Retaining Source Documentation Retain all financial records for: –3 years from date of submission of final Financial Status Report –3 years from final audit resolution

Documenting Examples Salary Benefits Training Travel Admin

Identifying Source Documentation Salary –Signed timesheets with supervisory approval –Quarterly payroll returns (941) –Payroll register –Personnel file with salary/wage information –Cancelled checks/Direct deposit schedule

Staff Activity Reporting Summary All salaries and wages charged to AmeriCorps grants must be supported by Time & Attendance records except for: –State, Local and Indian Tribal governments must comply with A-87 –Educational institutions must comply with A-21

Time & Activity Reporting OMB A-122 requirements of documentation for Activity reporting: –Must reflect an after-the fact distribution of the employee actual activity –Must account for the total activity of each employee –Must be prepared at least monthly and should coincide with one or more pay periods –Must be signed by the employer & supervisor (or supervisor having first-hand knowledge)

Identifying Documentation Benefits –Insurance receipts –Cost allocation plan –Paid invoices

Identifying Documentation Travel –Authorization/reimbursement requests –Receipts/invoices –Per diem rates (applicable to region) –Mileage calculation –Reconciliation of advances to payments

Training Documentation Training –Agenda –Course description, cost –Sign-in sheet –Consultant/trainer agreement –Paid invoices

Match The ultimate goal is sustainabilty!!! Grantees must meet minimum requirements of 50% overall match by year 10 ($1 for every CNCS $1)

Talking Technical Cost-sharing or Matching – Portion of projects or program costs not paid by the Federal Share (CNCS) Federal Share – Percentage of the program costs paid for with Federal Funds

More Technical Talk Program Income – Gross income earned by recipient directly generated by a supported activity or earned as a result of the award

More Technical Talk In-Kind Contributions –Value of non-cash contributions provided by third parties –May be in the form of real property, equipment, supplies and other expendable property –Value of goods, services directly benefiting and necessary to the project or program

Types of Match Statutory – Minimum matching amount the law, regulation requires grantees to provide Regulatory – Minimum matching amount established by CNCS regulations that may be higher than statutory requirement Budgeted – Amount of match grantee providing based on budget, budget narrative, and program narrative contained in grant application may be greater than required statutory match

Finding Your Match Cash: –Donations –Non-federal income –State appropriations –Foundation grants or corporate contributions

Finding Your Match In-Kind contributions: –Value of donated services and/or donated goods

Finding Your Match Unutilzed indirect cost rate – The portion of indirect costs not allowed by CNCS in Federal Share

Important rule to Remember! Government-wide, with few rare exceptions, Grantees cannot use other Federal funds as match

AmeriCorps Match Requirements Years 1-3: 24% Year 4: 26% Year 5: 30% Year 6: 34% Year 7: 38% Year 8: 42% Year 9: 46% Year 10: 50%

Matching Fund Requirements Match funds must be: –Verifiable from recipient records –Necessary & reasonable for accomplishing program objectives –Allowable according to cost principles (OMB Circulars) –Incurred during same period as project

Matching Fund Requirements Match funds must be: –Verifiable from recipient records –Necessary & reasonable for accomplishing program objectives –Allowable according to cost principles (OMB Circulars) –Incurred during same period as budget

Determining Acceptability of Costs Conditions in application/award letter/grant agreement Provisions OMB Circulars Program Applicability –Allocable –Allowable –Reasonable –Necessary

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 Members that are elements of the grantee’s cost allocation plan

Documentation Objective Document in-kind contributions to show: –What services or goods were obtained –Why transaction is allowable for grant purposes –The value of the contribution –How it is traced back to source documentation –(If audited, a grantee may be required to get full supporting documentation from all donors if not available during the audit)

Documenting Match Maintain adequate documentation to support amounts claimed as match Maintain same documentation for both CNCS and for the grantee’s share

Documenting Match Documentation should also ensure that costs: –Conform to grant/contract limitations –Are treated consistently? –Determined in accordance with Generally Accepted Accounting Principles (GAAP)

Recording In-Kind Documentation must meet same standards as other expenditures Record donation and valuation of item in detail Enter the general ledger as income and expenditure Failure to enter match contributions into general ledger requires a formal explanatory policy and separate spreadsheet accountability of receipt and use

Valuing In-kind Donations Utilize Quoted Market Price Consider what it would cost to obtain similar good or service Value of donation should be placed by the donor Review donation letter or form to ensure the value is reasonable Anything above $5,000 must be valued by an independent evaluator

Documenting In-Kind Document the basis for determining value of personal services, material equipment, building and land Obtain written acknowledgement of the contribution including: –Name and signature of donor –Date and location of donation –Detailed description of item/service –Estimated value (up to donor to give you the value)

In Conclusion Familiarize staff with documentation requirements Supporting documentation relates directly to expense for CNCS grant Establish documentation for expenditure requirements: reasonableness, necessity, allocability, allowability, and adherence to grant guidelines Maintain proper record retention policy