DOCUMENTATION for MATCH: Cash

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DOCUMENTATION for MATCH Cash In-Kind
AmeriCorps
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Session Objectives
Understand allowable, allocable, necessary
reasonable costs
Gather and retain proper documentation
Learn about types and examples of match
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Effective Financial Management
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Ineffective Financial Management
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OMB Requirements

• 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

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Talking Technical Definitions to Know

• Portion of program costs not paid by the CNCS
  (Federal Share)
• Percentage of the propertys acquisition costs
  and any improvement expenditures paid for with
  Federal funds
• Examples real property, equipment, and supplies
  
• 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

Cost Sharing or Matching
Federal Share
Project Costs
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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
• Value of non-cash contributions provided by
  non-federal 3rd parties
• 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

Program Income
In-Kind Contributions
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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 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
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What is Documentation?

• Physical Information
• Hard or Soft Copy
• Source
• Internal or External Party
• Benefits
• Supports a value, cost, or performance criteria

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Examples of Source Documentation

• Internal
• Time and activity
• Purchase orders
• Compliance and financial reports to grantors or
  grantees
• Ledgers cash receipts, payroll, disbursements

• External
• Bank statements
• Vendor invoices
• Grantor/grantee report
• Matching reports

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Why Retain Source Documentation?

• To track receipt of match
• To provide evidence of program accomplishments
• To prepare for an audit

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Maintaining Source Documentation

• Filing cabinet location
• In grants management office?
• In accounting department?
• In Executive Directors office?
• How is the documentation filed?
• By vendor?
• Alphabetically?
• By month?
• By grantor/grantee?

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Record Retention Requirements

• All grantees must retain all financial records
  for
• 3 years from date of submission of the Final
  Financial Status Report
• OR
• 3 years from final audit resolution when there
  is an on-going audit

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Examples of Match Documentation
Salary
Benefits
Travel
Training
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Documentation Examples
Salary

• Signed timesheets (i.e., time activity reports
  or personnel activity reports) with supervisory
  approval
• Quarterly payroll returns (941)
• Payroll register
• Personnel file with salary/wage information
• Employment contract
• Cancelled checks/Direct deposit schedule

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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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Time Activity Reporting OMB A-122

• 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

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Time Activity Reporting OMB A-87
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

• 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

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Documentation Examples
Benefits

• Insurance receipts
• Cost allocation plan
• Paid invoices

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
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Documentation Examples
Travel

• Authorization/reimbursement requests
• Receipts/invoices
• Per diem rates (applicable for region)
• Mileage calculation
• Reconciliation of advances to payments

Travel costs must not exceed charges normally
allowed by the organization in its regular
operations based on the organizations written
travel policy
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Documentation Examples
Training

• Agenda
• Course description, cost
• Sign-in sheet (if in-house)
• Consultant/Trainer agreement
• Paid invoices

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Exercise
Is it Match?
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Sustainability The Ultimate Goal
New Program/Project
Mature Program/Project
Grantee Share
CNCS Share
Grantee Share
CNCS Share
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More Technical Talk

• 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
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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 fundamental part of Member
  stipend totals
• AmeriCorps Budget Sections I III
• Operating expenses are a minimum 33 of total
  operating costs

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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)

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Finding Your Match

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

• In-Kind Contributions
• Value of donated services
• and/or donated goods
• Unutilized Portion of Indirect Cost Rate
• 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
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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 volunteer that are elements of the
  grantees cost allocation plan

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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
• 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 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

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Why Record In-Kind in General Ledger?

• 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

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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 donors letter or form to ensure the value
  is reasonable

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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

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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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No man who continues to add something to the
material, intellectual and moral well-being of
the place in which he lives is left long without
proper reward. - Booker T. Washington,
(18561915) American educator