1. Match& Inkind Donations:

2. 2 Session Objectives Gather and retain proper documentation Understand allowable, allocable, necessary & reasonable costs Learn about types and examples of match

3. 3 Effective Financial Management Written Policies & Procedures Supporting Documentation Cash Management & Budgetary Controls Internal Controls Accurate Information Efficient Accounting System

4. 4 Major audit findings Negative Publicity Funding is delayed, withheld, or repaid Mission is not achieved Ineffective Financial Management

5. 5 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 3 rd parties in accomplishing the objectives of the award during the project period Federal Share Project Costs Grantee Share

6. 6 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

7. 7 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-Kind Contributions Cost Sharing or Matching

8. 8 Sustainability: The Ultimate Goal New Program/Project Mature Program/Project Grantee Share CNCS Share CNCS Share Grantee Share

9. 9 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

10. 10 Grantee Cost Share or Match Cash and in-kind contributions are accepted as part of the grantees 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

11. 11 Examples of Match Salary Benefits Training Travel

12. 12 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

13. 13 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

14. 14 OMB A-122 requirements of documentation for timesheets: Must reflect an after-the-fact distribution of the employees 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

15. 15 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:

16. 16 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

17. 17 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 organizations written travel policy

18. 18 Documentation Examples Agenda Course description, cost Sign-in sheet (if in-house) Consultant/Trainer agreement Paid invoices Training

19. 19 So Many Types of Match Minimum 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

20. 20 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

21. 21 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

22. 22 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

23. 23 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)

24. 24 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

25. 25 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 grantees approved budget

26. 26 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.

27. 27 Recording In-Kind Match Maintain adequate documentation to support amounts claimed as match Maintain same documentation for both CNCS Federal share and for grantees 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

28. 28 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?

29. 29 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 donors letter or form to ensure the value is reasonable

30. 30 Documenting In-Kind Contributions Document the donors 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

31. 31 Sample In-Kind Contribution Form

32. 32 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

33. 33 Activity & Session Wrap-up