securing and documenting match and in-kind support gregory winn, sr. grants advisor, ogm susan...

Securing and Documenting Match and In-kind Support

Gregory Winn, Sr. Grants Advisor, OGMSusan Meche, Meche Consulting

Corporation Grantee Financial Accountability Seminar July 2007

Session Objectives

Gain knowledge of match requirements at basic and more advanced levels

Gather and retain proper match documentation for accountability and audit review

Learn about types and examples of match andhow to address complex requirements


Allowability of Project CostsTo be allowable under a grant, costs must:

■ 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

OMB Circulars – see handout


Grantee Share or MatchCash 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 necessary and reasonable for proper and efficient

accomplishment of project or program objectives■ Are allowable under the applicable OMB 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 grant provisions or OMB Circulars

Question: How would you estimateand record the value of PSAs? (See FAQ Sheet)


Talking Technical: Definitions to Know

Total allowable expenditures incurred to operate the program and accomplish its objectives

Portion of total expenditures paid for with Federal funds (CNCS)

Portion of total expenditures not paid for with Federal funds (CNCS) – Key Point – grantee share is recorded and documented the same as CNCS funding

Project Costs

Federal Share

Grantee Share


More Technical Talk

■ Gross income earned by the grantee that is directly generated by a supported activity or earned as a result of the award Key Point: There are three ways to address the use of program income – [see FAQ sheet]

■ Value of non-cash contributions provided by non-Federal third parties

■ May be in the form of real property, equipment, supplies, services, and other expendable property

ProgramIncome

In-KindContributions


Where Can You Find Match?

Cash: ■ Donations■ Non-federal income■ Local governments■ State appropriations■ Foundation grants or corporate

contributions

In-Kind Contributions:■ Value of donated services and/or donated goods

Unfunded Indirect Costs:■ The portion of indirect costs not allowed by CNCS in Federal Share

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


Exception: Volunteer 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


How to Record In-Kind Contributions■ 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


Statement of Financial Accounting Standards

(SFAS #116) sets the standard: Contributed services are recognized in

financial statements if 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?


Recording In-Kind Contributions

Enter into the general ledger as income and expenditure:

Example:Local paint store donates a professional paint sprayer with a fair market value of $550.00

$550.00 – 7250 In-Kind Expenses Account (debit) $550.00 – 5250 In-Kind Income Account (credit)


Defining Source Documentation:

Benefits: Supports a value, cost, or performance criteria relative to the grant

Physical information: ■ Hard copy■ Soft copy: CD, flash drive, server, microfilm

Source: ■ Internal source■ External source

NB: Federal Funds and match are maintained and documented the same way with the exception of in-kind match contributions


Why Retain Documentation?

To track incoming information To review information To provide historical evidence To provide evidence of

accomplishments To prepare for an audit How do you maintain

documentation? Internal controls and security for your financial system (see handout)


Retaining Source DocumentationRetain all financial records: 3 years from date of submission of final Financial

Status Report Final report submitted by Commission or Parent of

National Direct 3 years from final audit resolution when there is an on-

going auditExample 1:

Grant Ends 7/31/2009 90 days to submit Final

FSR = 10/31/2009 3 years = 10/31/2012

Example 2:

Grant Ends 7/31/2009 90 days = 10/31/2009 3 years = 10/31/2012 Audit started = 4/1/2012 Final audit resolution = 9/30/2013 3 years = 8/31/2016


Documentation Examples

Benefits

Training

Admin

Supplies

Evaluation

Contract &Consultant

Salary Travel

Volunteer orMember Costs


Identifying Documentation

Signed timesheets with supervisory approval

Quarterly payroll returns (941) Payroll register Personnel file with salary/wage information Employment contract Cancelled checks/Direct deposit schedule

Salary


Time & Activity Reporting Summary

All salaries and wages charged to grants must be supported by signed time & attendance records, i.e., timesheetsExceptions:

State, Local and Indian Tribal governments must comply with requirements of OMB A-87

Educational Institutions must comply with requirements of OMB A-21

{See Handout for specifics depending on Grantee Type i.e. State, Local and Indian Tribal Governments, Educational Institutions and Non-Profit Organizations}



Insurance policy

Paid invoices and receipts

Cost allocation plan

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



Authorization/reimbursement request NB: You must have written policies and procedures on hand on how to authorize and reimburse travel

Paid invoices and receipts Per diem rates (applicable for area) 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



Purchase orders

Packing slips

Paid receipts and invoices

Donated Supplies, i.e., in-kind

Supplies



Purchase orders

Signed agreements

Paid invoices and receipts

Contract &Consultant

Maximum Allowed by CNCS for Consultant fee is $540 per day. In charging contract services it is important to differentiate

among days of prep time, number of days of activity, travel and per diem where applicable.



Agenda Course description, cost Sign-in sheet Consultant/Trainer agreement Paid invoices and receipts While the cost of the training, itself, is

usually allowable, one cannot include the value of the time given by the attendees to participate.

Training



Purchase orders Signed agreement/contract Paid invoices and receipts Final copy of the evaluation report

Evaluation



Meal receipts Uniforms invoices and receipts Insurance invoices and receipts Recognition invoices and receipts Travel invoices and receipts Physical Examinations invoices

and receipts* Senior Corps only

Volunteer Costs*



Member eligibility Signed member contract Member timesheets signed by both member and

supervisor Documented pay system Signed mid-year and final member evaluations Were donations received with restrictions on their use,

or on the time of their allowable use? Can grantee use cash contribution for a prior period retroactively of member cost or not? Were contributions received timely and used during the course of the award, or only at the end of it?

Member Match


More Technical Talk: Match Requirements

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 budget, budget narrative, and program narrative contained in grant application; may be greater than statutory or regulatory required match

Statutory

Regulatory

Budgeted


Sustainability for AmeriCorps and Service Learning: The Ultimate Goal

NewProgram/Project

MatureProgram/Project

Grantee Share

CNCSShare

CNCSShare

GranteeShare


Valuing In-Kind Donations

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 donation letter or form to ensure the value is reasonable and compare with other estimates or bases for value


Documenting In-Kind ContributionsDocument 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

If audited, a grantee may be required to obtain full supporting documentation from all donors if not

available during the audit.


Documenting In-Kind Contributions

1. Document the basis for determining value of personal services, material equipment, building, and land

2. Obtain written acknowledgement of the contribution including:

Name and signature of donor

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*** Keep a copy of the receipt in your files ***


Sample 1: In-Kind Contribution Form

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 2: In-Kind Contribution Form


Common Audit Findings Related to

Cash & In-Kind Match

See Handout


Summing it up: In a Nutshell Source Documentation: Familiarize all staff with cash and in-kind

match documentation requirements Ensure supporting documentation relates

directly to approved program funded by the CNCS grant

Establish documentation for expenditure requirements to ensure costs are: reasonable, necessary, allocable, allowable, and adhere to grant guidelines

Maintain proper records and establish a written record retention policy

Electronic copies of this material can be found at The Resource Center

http://nationalserviceresources.org/

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securing and documenting match and in-kind support gregory winn, sr. grants advisor, ogm susan...

Documents

grantees cost sharing

federal statute

federal government

documenting match

cost principlesbe consistent

proper match documentation

federal sharegovernmentwide

use of program income