•Documentation, Cash & In-Kind Match

Session ObjectivesSession Objectives

• Gather information on proper documentation

• Allowable, allocable & reasonable costs

• Gain knowledge of types of match

Defining Source DocumentationDefining Source Documentation

• Reasonable, allocable, allowable• Conform to grant/contract

limitations• Treated consistently• In accordance with Generally

Accepted Accounting Principals (GAAP)

Finding Source DocumentationFinding Source Documentation

• INTERNAL– Time and activity– Purchase orders– Compliance, financial reports to

grantors or grantees– Ledgers: cash receipts, payroll

disbursements

Finding Source DocumentationFinding Source Documentation

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

Classifying the InformationClassifying 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?Why Source Documentation?

• To track incoming information

• To review information

• To provide evidence of accomplishments

• To document and audit

Maintaining Source DocumentationMaintaining 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 DocumentationRetaining 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 ExamplesDocumenting Examples

• Salary

• Benefits

• Training

• Travel

• Admin

Identifying Source DocumentationIdentifying 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 SummaryStaff 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 ReportingTime & 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 DocumentationIdentifying Documentation

• Benefits– Insurance receipts– Cost allocation plan– Paid invoices

Identifying DocumentationIdentifying Documentation

• Travel– Authorization/reimbursement

requests– Receipts/invoices– Per diem rates (applicable to region)– Mileage calculation– Reconciliation of advances to

payments

Training DocumentationTraining Documentation

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

MatchMatch

• The ultimate goal is sustainabilty!!!

• Grantees must meet minimum requirements of 50% overall match by year 10 ($1 for every CNCS $1)

Talking TechnicalTalking 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 TalkMore 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 TalkMore 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 MatchTypes 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 MatchFinding Your Match

• Cash:– Donations– Non-federal income– State appropriations– Foundation grants or corporate

contributions

Finding Your MatchFinding Your Match

• In-Kind contributions:– Value of donated services and/or

donated goods

Finding Your MatchFinding Your Match

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

Important rule to Remember!Important rule to Remember!

• Government-wide, with few rare exceptions, Grantees cannot use other Federal funds as match

AmeriCorps Match RequirementsAmeriCorps 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 RequirementsMatching 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 RequirementsMatching 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 CostsDetermining Acceptability of Costs

• Conditions in application/award letter/grant agreement

• Provisions• OMB Circulars• Program Applicability

– Allocable– Allowable– Reasonable– Necessary

Volunteer Exception for MatchVolunteer 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 ObjectiveDocumentation 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 MatchDocumenting Match

• Maintain adequate documentation to support amounts claimed as match

• Maintain same documentation for both CNCS and for the grantee’s share

Documenting MatchDocumenting 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-KindRecording 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 DonationsValuing 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-KindDocumenting 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 ConclusionIn 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