2012 04 23 cost share webinar 101 presentation

1Management Sciences for Health

Stronger health systems. Greater health impact.

Cost Share 101 Definitions, Ideas, and Implications for LMG

April 2012


Objectives of This Cost Share Webinar

The first in a series of cost share webinars

Explain the concept of cost share as used on U.S. Government (USG) projects

Provide practical guidance for identifying and documenting cost share

Provide information on cost share tools available to the LMG Team

Provide information about roles and responsibilities on the LMG project regarding cost share


Cost Share in USAID Agreements

Definitions A requirement for USAID-funded cooperative agreements

and grants Cost sharing or matching refers to a portion of project or

program costs not borne by USG

References: Office of Management and Budget (OMB) Circular A-110: definitions

of terms Code of Federal Regulations (CFR) 2 CFR 215.23: guidance on

valuation methods for in-kind contributions 22 CFR Part 226 “Administration of Assistance Awards to U.S. Non-

Governmental Organizations”, Section 23, and “Mandatory Standard Provisions for U.S. Nongovernmental Recipients”


What is Cost Share?

Cash contributions - money from foundations or companies; donations, grants, buy-in from other donors or organizations with non-USG funding.

Documented and tracked in US Dollars.

In-kind contributions - resources other than money that cover costs that would have been paid for with USG project funds, had they not been covered by the in-kind support.

Examples: volunteer services, loaned equipment or space, donated supplies, land, buildings, seconded staff paid by a partner, donated health products, and more.


What are the Rules about Cost Share?

All contributions, including cash and in-kind, shall be accepted as part of the cost sharing or matching when such contributions meet all of the following criteria:

Are verifiable from the recipient’s records

Are not included as contributions for any other federally-assisted project or program

Are necessary and reasonable for proper and efficient achievement of project objectives

Are allowable under the applicable cost principles


Cash Contributions

Funding from non-USG sources Documented and reported in USD

When you receive a cash contribution:

Obtain written verification (letter) from the donor stating clearly the amount of the cash contribution and its purpose

Acknowledge receipt of the contribution in writing Document currency conversion calculation at the time the

contribution was made Document exchange gain or loss, if relevant


In-Kind Contributions

Sometimes the only contribution a partner can make Demonstrate partner contributions and commitment Provide the true total cost of a project, when factored in

as part of a project budget

Important: All financial records pertaining to a cash or an in-kind

contribution should be retained for three (3) years from the date of submission of the financial report in which the contribution was reported.

Reasonableness of the contribution’s value: what would the donated item /service have cost if the project had paid for it? Use fair market or fair rental value!


Types of In-Kind Contributions: Labor

Category Examples Valuation Ideal Documentation

Acceptable Documentation

Unacceptable Documentation

Employee of another

organization

GTZ employee donating time,

University of Tanzania employee donating

time

Rate: valued at the employee's regular

rate of pay plus fringe benefits exclusive of OH

provided that these services are the

same skill for which the employee is normally paid

A paystub or copy of paycheck or current copy of a contract stating employee's

rate

Organization's salary scale or Salary surveys or FSN scales or MSH pay scale for similar skill set & activity or other donor salary

scale

Biodata

Quantity of Time (LOE)

A work log/timesheet itemizing hours spent on activity signed by

employee & employee's supervisor

Letter stating hours spent on activity

signed by employee & supervisor/activity

manager

Timesheet or letter missing one or both

signatures



Independent Consultant - full

rate

Consultant donating time for an activity

Rate Copy of a current/recent

contract for similar work which lists rate

(daily/monthly/yearly)

Salary surveys or FSN scales or what MSH has paid for similar

work before or other donor salary scale

Biodata


A work log/timesheet itemizing hours spent on activity signed by

consultant & supervisor/activity

manager

Letter stating hours spent on activity

signed by consultant & supervisor/ activity

manager


signatures

Independent Consultant -

discounted rate

Consultant providing service/working at a

reduced rate

Usual Rate minus discounted rate = cost share amount

Copy of a current/recent

contract for similar work which lists rate

(daily/monthly/yearly) and letter stating the

discounted rate

Salary surveys or FSN scales or what MSH has paid for similar

work before or other donor salary scale that documents the usual

rate

Biodata






Volunteers drivers, community health workers,

construction

Rates consistent with those paid for similar work in the

recipient's organization or in the labor market in which the recipient

competes for the kind of services involved

Salary surveys or FSN scales or MSH pay

scale for similar skill set and activity or what

MSH has paid for similar work before

or other donor salary scale

Biodata


a work log/timesheet itemizing hours spent on

activity signed by volunteer and supervisor/ activity

manager


signatures




No Volunteer Name

Type of Activity Work Dates No of work days

Volunteer Signature


Types of In-Kind Contributions: Supplies and Materials

Supplies

NEW Expendable equipment, office supplies, laboratory

supplies, workshop supplies

fair market value of the property at the

time of donation

Copies of receipts for donated

supplies

quotes from vendors or receipts

for similar items purchased recently

or current advertisements

Letter stating prices of donated

supplies

ON HAND Expendable equipment, office supplies,

laboratory supplies, workshop supplies

fair market value of the property at the

time of donation

quotes from vendors or

receipts for similar items purchased

recently or current advertisements

Letter stating prices of donated

supplies

Materials

NEW training materials, presentation materials, manuals

fair market value i.e. value of the time

invested in producing materials

see Labor

ON HAND training materials, manuals

Fair market value of training materials & manuals at the time

of the donation

quotes from vendors or







Types of In-Kind Contributions: Equipment

Equipment

NEW audio-visual equipment,

photocopiers, lab equipment

fair market value of equipment at the time

of donation

quotes from vendors or receipts for similar items purchased


USED audio-visual equipment,

photocopiers, lab equipment

fair market value of equipment the same age and condition at the time of donation

quotes from used equipment vendors or



quotes on new equipment and written

calculation of depreciation or

depreciation table

Loaned Equipment

Vehicles, photocopiers, refrigerators, motorcycles,

bicycles

Rate: fair rental value quotes from equipment leasing vendors or

receipts for like items rented recently or

advertisementsQuantity Letter stating the number

of days/months/years equipment is loaned signed by authorized

official of loaning entity




Letter stating the number of

days/months/years

Equipment is loaned not

signed


Types of In-Kind Contributions: Space

Space Workshop meeting room,

office space

Rate: fair rental value of

comparable space

Independent appraisal of comparable space and facilities in a privately-owned building in the

same locality

Quote from other rental space vendors

or recent lease agreement for

comparable space

Quantity Letter stating the number of days/months/years

donated signed by authorized official of

donor entity

Copy of the lease agreement that clearly states dates of rental




Letter stating the number of

days/months/years donated not signed or

lease agreement that shows no

dates


Types of In-Kind Contributions: Training

Participant Training

Participant per diem partially or fully paid

for by another

organization

Training days, site visit days, study tour days

Other donor per diem rates or CLM

local per diem rates

Official document with training title, venue, locality & dates and a list of

participants, amounts given to each for per diem and participant

sign off that funds were received

Official document with training title,

venue, locality & dates and list of participants and per diem

rates used

Participant travel partially

or fully paid for by

another organization

Cost of transportation

to and from home, to and from hotel to

training venue, site visits

Fair market value on airline/bus/train

tickets, other donor transportation

reimbursement rates or LMG local

transportation rates

Official document with training title, venue, locality &

dates and copies of transportation receipts (airline

tickets, bus, taxi ) for each participant

Official document with training title, venue,

locality & dates and list of

participants and amounts given to each

for transportation and participant

sign off that funds were received





Documentation Requirements

The basis for determining the valuation for personal services, material, equipment, buildings and land shall be documented

Examples of back-up documentation: Donation letter / statement of costs that show the type of

donation, value and frequency from a donor Copy of bank statement (for cash contributions) Time and efforts sheets / forms signed by supervisors Rate calculations In-kind receipts / voucher forms Valuation of donated goods and use of space Independent appraisals (for donated equipment, buildings or land) Federally approved Indirect Rate Agreement (for US-based contributors as applicable)


LMG Cost Share Tools and Templates

List of LMG Cost Share Reference Documents

Partner Profile FormCost Share Plan TemplateCost Share Guidance Cost Share TrackerSamples of MOU templates, receipt letter for cash contributions, and volunteer time sheets

LMG forms, templates and quarterly reports will be stored and accessible via Central Desktop


Cost Share Examples


Non-USG Funded Projects as Cost Share

It is possible to leverage non-USG funded projects implemented in the LMG countries as cost share, if: Their objectives are relevant to the LMG objectives Evidence, knowledge, tools, methodologies, and networks from

these projects can be utilized to further LMG objectives Non-USG funded research activities can inform

LMG strategies and approaches or vice versa No other USG-funded project claims the same cost share The value added of the non-USG project is quantified according to USG guidance and attribution can be reasonably claimed


Cost Share Examples

Events / Publications / Media / Marketing

Co-sponsorship of project events, publications Transportation and accommodation costs coverage Support for the LMG web portal Development / upgrades of IT solutions, platforms for knowledge exchange, sharing, etc. Pro bono public relations services, filming, production of documentaries, testimonials Contribution of air time, media buying services, product placement Pro bono development of branding and marketing plans for products developed by a LMG partnership

Pro bono technical assistance, secondment of staff (can be in the filed as well)

10. Access to other services, supply chains, products

11. Facilitation of partnership building, introductions to other stakeholders, funding for participation in conferences and events

12. Funds leveraged through development of concepts for funding


Cost Share Examples

Access to Specialized Skills Pro bono technical assistance as needed (access to specialized skill sets that LMG may not have on staff in the US or in the field)

Audit (financial management of partnership funds, verification/validation of cost share reports in the field) Specialized training Marketing and PR Specialized research skills, costing and modeling skills, etc. Secondment of partner staff (pro bono, at discounted rates, etc.)

Access to Partner Networks supply chain, communication, transportation, diaspora, and others

Access to Products health and others

10.

11. Facilitation of partnership building, introductions to other stakeholders, funding for participation in conferences and events

12. Funds leveraged through development of concepts for funding


MSH Cost Share Contribution Examples

Updated existing training curricula and products provided as contributions to a partnership (cannot be funded by USG funds)

Provision of services for a fee (related to LMG objectives)

Solutions to partner challenges: Gender sensitivity or gender empowerment courses for hotel chains,

garment factories, tea plantations (large female workforce) Assistance to the improvement of training curricula for academic

institutions and other partners (MOHs, professional associations) Mentoring programs for women networks Community engagement programs for extractive industry partners Partnership brokering, facilitation, and management (partnership units,

secretariats)

Business development – developing concepts, proposals for non-USG funds to further LMG objectives


Why is Cost Share Important to LMG?

A contractually mandated deliverable – 20% of obligated LMG Core and Field Support funds

An opportunity for MSH and partners to demonstrate commitment to and ensure sustainability of project investments

An obligation that, if not met, will result in a reduction in the amount of USAID incremental funding in the following period or require MSH to refund the difference to USAID, if the award has expired or has been terminated.


LMG Contacts for Cost Share Questions

Cost share opportunities identification, brainstorming, development of cost share plans, tracking Albena Godlove, Director, Global Advocacy and Partnerships, LMG

[email protected] tel.: 703 310 3469 Eva Ros, Senior Technical Advisor, Global Advocacy and

Partnerships, LMG

[email protected] tel.: 703 310 3474

Cost share documentation review, approval, tracking, contractual and compliance questions Peter Mahoney, Senior Contracts Officer, MSH

[email protected] tel.: 617 250 9332


Bottom line

Leveraging the LMG Project Cost Share is a Team Effort

What is on your mind?


Stronger health systems. Greater health impact.

Saving lives and improving the health

of the world’s poorest and most vulnerable people

by closing the gap between knowledge and action in

public health.