COOPERATIVE FUNDING AGREEMENTS

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PROGRAM INCOME / IN-KIND ASSISTANCE / IN-KIND
CONTRIBUTION
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PROGRAM INCOME REFERENCES

• NGR 5-1/ANGI 63-101 Chapter 7.
• 32 CFR, SECTION 33.25.
• DoDGAR 3210.6-R, SECTION 33.25.

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FUNDS THAT ARE NOT PROGRAM INCOME

• Rental of State owned and Federally supported
  armories.
• Reimbursements made to the USPFO by another
  Federal agency for the use of a NGB supported
  facility.
• Billeting Fund.

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RENTAL OF STATE OWNED, FEDERALLY SUPPORTED
ARMORIES

• TITLE 10 U.S.C. 1823(C) Permits the States to
  rent out Armories if the State uses the income to
  maintain the Armories.

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REIMBURSEMENT BY ANOTHER FEDERAL AGENCY

• Funds submitted to the USPFO.
• USPFO processes a reimbursement for actual
  costs incurred.
• Cooperative Agreement modified to increase
  Federal contribution.

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BILLETING FUND

• NGR 210-50

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PROGRAM INCOME

• GRANTEES (NGB) ARE ENCOURAGED TO EARN PROGRAM
  INCOME

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PROGRAM INCOMEDEFINED
Program income is defined in NGR 5-1/ANGI
63-101, Chapter 7 as the gross income, received
by a recipient from fees for services performed
and from the use, rental, or sale of real or
personal property, the operation and maintenance
of which is supported under an NGB CA.
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PROGRAM INCOME CONCERNS

• Equipment acquired with NGB CA funds shall NOT
  be used to provide services for a fee to compete
  unfairly with private companies that provide
  equivalent services.
• Likewise we should not rent facilities that
• would compete unfairly against the private
  sector.

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USERS FEE

• NATIONAL GUARD USERS Recover Cost for
  Additional Services
• FEDERAL AGENCIES Recover Identifiable
  Incremental Costs
• NON-FEDERAL USERS Recover an Amount Equal to
  its Overhead Cost

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ACCOUNTING FOR PROGRAM INCOME

• Program income is accounted for and used as an
  addition to the States contribution to a CA.
• If program income is received on a cost-shared
  CA, the amount of program income added to the
  funds committed to the CA is a percentage of
  gross program income equal to the percentage of
  the Federal contribution stated in the CA.

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ACCOUNTING FOR PROGRAM INCOME (Continued)

• The State must expend program income funds
  following the rules applicable to the type of
  funds from which the program income was
  generated.
• Program income is used to offset future
  requests for reimbursement.

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ACCOUNTING FOR PROGRAM INCOME (Continued)

• Cooperative Agreement modified to increase
  estimated cost.
• Program income is reported in DAADS as part of
  the State contribution.

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FUNDING PROGRAM INCOME
FUNDING
CASH

Quarterly Authority Annual
Budget Authority

Allotment Annual
Funding Program
Maximum Funding Limitation
Estimated CostFederal
Share (100) _______________________ _____100,00
0__________________Federal Share
(75) _______________________ __________________
_____Federal Share (50) _______________________
_______________________ Federal
Total _______________________ __________________
____State Share (50) ________________________
______50,000_________________State Share
(25) ________________________ _________________
______
Program
Income _______________________State
Total ________________________ _________________
______Grand Total ________________________ ___
____________________In-Kind Assistance.
1,000.00
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PROGRAM INCOME

• EXAMPLES

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EXAMPLE 1
The State Resource Manager received 1,000 in
program income from the State Human Resources
Division for using the Training Site auditorium.
(100 Federal)  State Resource Manager  1.
Receives the check from the Training Site
Administrator.  2. Reports the 1,000 program
income to the Grants Officer.  3. On the next
request for reimbursement, reduces the amount
requested by the amount of program income.
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EXAMPLE 1 (Continued)
The Grants Officer  1. Completes a modification
to the cooperative agreement.  2. Reports
program income in DAADS as an increase to the
State contribution.  If the original contribution
by the State was 0, add the 1,000 program
income contribution for a total State
contribution of 1,000.
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EXAMPLE 2
The State Resource Manager received 5,000 in
program income from the state highway patrol for
using an agreement supported pistol range. (75
Federal/25 State)  State Resource Manager  1.
Reports the 3,750 program income to the Grants
Officer. (5,000 X 75 Federal share)  2.   On
the next request for reimbursement, reduces the
amount requested by the amount of program
income. 3. The State Resource Manager at their
discretion will use the 1,250 that is not
reported as program income. 
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EXAMPLE 2 (Continued)
The Grants Officer 1. Completes a modification
to the cooperative agreement. 2. Reports program
income in DAADS as an increase to the State
contribution. If the original contribution by the
State was 100,000 add the 3,750 program income
contribution for a total State contribution of
103,750.
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MANAGEMENT CONTROLS

• Determine which programs in your state may create
  Program Income.
• Validate whether program income is being
  generated
• Is program income submitted to State Comptroller?
• Has the State Comptroller correctly applied
  program income (proper share proper appendix)
  by reducing requests for reimbursements?
• Validate that CA has been modified to increase
  the State Share by the applied Program Income and
  reported in DAADs.

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IN-KIND ASSISTANCE REFERENCE

• NGR 5-1/ANGI 63-101 Chapter 6

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GOVERNMENT FURNISHED EQUIPMENT

• Government furnished equipment is NOT In-Kind
  assistance.
• Reference NGR 5-1/ANGI63-101 Chapter 6-2c

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The transfer of property or services (valued at
the time of contribution at fair market value),
in lieu of funds by NGB, to satisfy (in whole or
in part) its obligation of assistance support to
the State.
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IN-KIND ASSISTANCE AUTHORIZED

• Supplies.
• Services (exception is Federal contracts for the
  performance of fire fighting or security guard
  functions).
• Maintenance or repair.

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TYPES OF IN-KIND ASSISTANCE

• Contracting through the USPFO.
• Contracting through other Federal channels.

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IN-KIND ASSISTANCE

• In-Kind Assistance is on a case-by-case basis
  and considered the exception, not the rule.
• The value of the In-Kind Assistance must be
  accounted for in the Cooperative Agreement.
• The total monetary value of the In Kind
  Assistance is the amount used to determine a
  States share when a Cooperative Agreement is
  cost shared.

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PROCESSING IN-KIND ASSISTANCE

• USPFO Approves/Disapproves
• Modify Cooperative Agreement (if approved)
• Federal Procurement

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FUNDING IN KIND ASSISTANCE
CASH

Quarterly Authority
Annual Budget Authority

Allotment
Annual Funding Program
Maximum
Funding Limitation
Estimated CostFederal Share (100) ______100,00
0___________ _______________________Federal
Share (75) _______________________ ____________
___________Federal Share (50) _________________
______ _______________________
Federal Total _______________________ __________
____________State Share (50) ________________
________ _______________________State Share
(25) ________________________ _________________
______
Program
Income _______________________State
Total ________________________ _________________
______Grand Total ________________________ ___
____________________In-Kind Assistance

____________________ within the
federal share indicated above, in-kind assistance
thru federal procurement procedures of 1,000
is being withheld and designated specifically.
1,000.00
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PROCESSING IN-KIND ASSISTANCE (Continued)

• Accountability of cost shared CA.
• The USPFO notifies the State of the States
  cost share
• State credits the amount against the costs
  claimed for reimbursement under that agreement
  on the next voucher submitted.

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MANAGEMENT CONTROLS (Continued)

• Is In-Kind Assistance approved by the USPFO as an
  exception?
• Has the CA been modified converting cash
  contribution to IKA with no change in total
  value? Validate that any State Share is applied
  on future reimbursement.

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CASE STUDY
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CASE STUDY MODULE
7     The 133rd ARW (NG) Base Civil Engineer has
notified NGB ANG/CE that a requirement exists to
purchase contract training for maintenance state
employees (FOMA) on a new fire suppression system
installed at the wing. The message further
stated that the training would be purchased using
an Air Force contract in the approximate amount
of 4,000.00. The Wing is to use existing funds
contained within the FOMA (75-25), with the
understanding that they will be reimbursed at
mid-year.     What steps are required to make
this happen?   Are there any concerns that should
be addressed relative to this action?
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IN KIND CONTRIBUTION BY STATE
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COST SHARE DEFINITION

• Cost share occurs when the Federal
• Government is not funding 100 of the
• activity
• Cost share is also known as
• gt Matching share
• gt Match
• gt Matching funds

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COST SHARES

• Cost share is set by NGB or legislation
• Appendices
• NGR 5-1/ANGI 63-101

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OTHER COST SHARE REFERENCES

• GAO Principles of Federal Appropriations
  Law-Vol II
• Department of Defense Grants Agreements
  Regulation (DoDGARS) 3210-6R
• NGB Cooperative Agreement and Support Agreement
  Handbook (CASA)

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RECIPIENTS COST SHARE CAN BE

• HARD MATCH
• SOFT MATCH

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HARD MATCH

• Hard Match is strictly cash contribution.
• The only hard match required in CA is MILCON
  for Armories per 10 USC 18236. The land has to
  be State owned and its value cannot be part of
  the match.

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SOFT MATCH
All other CAs, unless specified by
legislation, are soft match and the State can
contribute other than cash in the form of
supplies or services (allowable costs only).
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VALUE OF STATE IN-KIND CONTRIBUTION

• Value assessed per DoDGARS 33.24
• Assessed value of contribution must be valued
  at a Fair Reasonable amount that can be be
  verified by States records.

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EVALUATING STATE IN-KIND CONTRIBUTION PER DODGARS
33.24
For donated services (1) Volunteer
Services-valued at rates consistent with those
ordinarily paid for similar work in States
organization or similar to labor market if State
doesnt have this type of employee. (2) Other
Organizations Employees-valued the employees
regular rate of pay (for same type of work)
exclusive of Fringe Benefits and Overhead Costs.
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EVALUATING THIRD PARTY IN-KIND CONTRIBUTION PER
DODGARS 33.24
For donated supplies loaned equipment or space
where title does not pass to grantee or
subgrantee (1) Value of supplies will be
market value at time of donation (2) Value of
equipment or building space will be at fair
rental rate of that equipment or space. For
donated equipment, buildings, and land If a 3d
party passes title to grantee or subgrantee, the
treatment of the donated property depends on the
purpose of the grant. (See DoDGARS 33.24) For
donated real property for construction/acquisition
-see DoDGARS 33.24.
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MODULE TEACHING POINTS

• HARD/SOFT MATCH
• Is Soft Match valued per
• DODGARS 3210.6R?

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QUESTIONS