match& inkind donations:. 2 session objectives gather and retain proper documentation understand...
TRANSCRIPT
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
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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