Grant Funds Matching in AmeriCorps and Other Programs

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Grant Funds Matchingin AmeriCorps and Other
Programs

• Briefing on Requirements and Practices

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What is match?

• Match is the share of a projects total cost
  that a grantee must pay for with their own money,
  also called the non-federal share.
• There are two types of match
• Cash
• In-kind contributions
• Government-wide with few rare exceptions grantees
  can not use other federal funds as match

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Statutory vs. budgeted match rate

• Statutory the minimum matching amount that the
  law/regulation requires a grantee to provide
• Regulatory the minimum matching that the
  Corporation has established by regulation which
  may be higher than the statutory requirement.
• Budgeted the amount of match that a grantee is
  providing based upon the budget, budget
  narrative, and program narrative in their grant
  application this may be greater than the
  statutory match required (see below)
• Catch 22 While budgeting match above the
  statutory and regulatory requirements is
  considered voluntary, a budgeted match rate is
  closely tied to the number of members proposed,
  and is a contracted match that affects both the
  scope of work and the closeout process.

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Summary of Match RequirementsLearn Serve

• K-12 (School and Community Based)
• 1st Year - 10 of total funds
• 2nd Year - 20 of total funds
• 3rd Year - 30 of total funds
• 4thYear and after - 50 of total funds
• Higher Ed - 50 of total funds

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Senior CorpsMatch Requirements

• Retired Senior Volunteer Program (RSVP)
• 1st Year - 10 of total funds
• 2nd Year - 20 of total funds
• 3rd Year and after - 30 of total funds
• Foster Grandparents and Senior Companion Program
• 10 of total funds
• Volunteer support should not exceed 20 of total
  funds

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Traditional AmeriCorpsMatch Requirements

• Match percentages should be calculated from the
  Financial Status Report (FSR) Form 269a
• AmeriCorps Budget Section II - Member support
  should be reported semi-annually, match must be
  15 cash at minimum. These are funds that are a
  fundamental part of Member stipend totals
• AmeriCorps Budget Sections I III - Operating
  expenses are 33 of total operating costs at a
  minimum

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New INCREASED EMPHASIS ON COST EFFECTIVENESS
AND MATCH IN APPLICATIONS FOR 2006

• Cost Effectiveness (15) and Budget Adequacy
  (10) now total 25 of new application
  competitive review criteria
• Both factors (cost effectiveness and budget)
  include match considerations and ability to
  document match
• Part of Program and Budget Review is Community
  Output (20 of total grantee competitive rating)
  is Sustainability
• Sustainability includes community investment,
  diversification of funding sources as evidenced
  by direct contributions and by cash and in-kind
  match.

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NEW MATCH RULES FOR 2006, AND BEYOND, ARE FOUND
IN 45 CFR 2521.35 TO 2521.90 AS SUMMARIZED

• Education Award Budget Reviews new rules do not
  apply
• Tribes Under PL 93-638 new rules apply but all
  USG funds are considered non-federal for match
  purposes
• State Commissions must meet their overall
  Aggregate match based on individual grantees
  meeting their requirements
• Basic Member Match as in Past Federal share
  (CNCS and other Federal funds) cannot exceed 85
  percent of total minimum living allowance. QED
  Grantee share must be 15 cash or above of
  stipend costs.
• Basic Operational Match As in Past CNCS share
  of operating costs may not exceed 67. Match can
  be cash or in-kind for grantee amounting to 33
  or more of this total.

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New Rule Overall Regulatory and Budget Matches

• Definition In addition to both basic matches
  above, under 2521.60(a) or .60(b) a new Overall
  Match is required.
• Overall Match Total match contribution of
  grantee in comparison to CNCS contribution of
  total budget. Overall match is on a sliding
  scale, increasing per year. It has a base rate
  only after three years grant experience of 26
  of total budget costs (see charts).
• Definition Budgeted Match is the match as
  stated in the approved budget and it may exceed
  basic regulatory match levels. Failure to meet
  these even higher levels is a performance factor
  in future grant competitions

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How does an organization meet their matching
obligation?

• Cash from
• Donations
• Non-federal income
• State appropriations/commission budgets
• In-kind contributions
• Value of donated labor
• Value of donated space
• Value of donated vehicles
• Value of donated GED services, etc.
• Unfunded indirect cost rate
• If a grantees approved indirect cost rate is
  greater than the 5 allowed by the AmeriCorps
  program, the unfunded difference can be counted
  towards the grantees matching obligation

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Sample grant budget
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Overall Match Calculation Considerations

• I
• While Program Operating Cost match is 67 vs. 15
  for Member Support Cost, Member Support Cost is
  often the larger dollar amount of match paid by
  grantees because the Member Support component of
  a program is largest. Therefore, it may be more
  difficult for grantees to meet the Overall
  Match requirement when a large share of their
  match is for member living allowances.
• Grantees typically add a member only when they
  have the cash match assured therefore grantees
  are likely to meet the required Member Support
  Cost match.

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Regulatory New Overall Match Requirement
Examined

• 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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What influences a grantees proposed budgeted
match?

• Cash match requirement Since grantees must match
  member living allowances with cash, grantees can
  only propose a program size (number of members)
  up to the amount of cash they can generate
  realistically.
• No transfer between categories The Corporation
  generally does not allow grantees to transfer
  funds approved for Member Support Costs into
  Program Operating budget categories.
• Meeting Member Match, if cash match to cover
  Member Support Costs isnt raised, members should
  not be enrolled unless those funds are available.
  Cash match is real dollars provided to the
  Members and therefore is necessary as budgeted.

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When is match examined?

• Application and Award phases From a programmatic
  and financial viability perspective, sources of
  match are examined to validate that they are
  reasonable and likely to be achieved and
  allowable.
• During Program Monitoring and/or Site Visits to
  Programs
• Post-award With each financial report, progress
  towards meeting statutory match is monitored.
  Problems meeting budgeted match are flagged
  during renewal application consideration.
• Closeout Financial reports are examined to
  verify that statutory and regulatory minimums
  have been met. Failure to meet budgeted match
  may result in decreased funding in new
  competitions or possibly a no decision for
  funding. Failure to meet statutory match will
  result in a pro-rated disallowance in CNCS
  funding

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When do financial reports come in?

• Financial reports are due every 6 months over the
  course of a 3-year grant period
• FSR reports are cumulative over the entire 3-year
  period.
• WBRS is being integrated in 2005 into eGrants and
  will serve as the mechanism for FSR and match
  reporting.

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Typical Financial Report
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Why match could be lower than 15 or 33 today

• In-kind match is met over the 3-year full grant
  period, so that at any time it may appear
  deficient. Inability to meet budgeted cash match
  may affect member stipends and will be questioned
  at any time.
• Certain grantees (universities, tribes) are more
  likely to enter match contributions toward the
  end of the grant year or period.

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Determination of Acceptability of Costs

• Conditions in award letter
• Provisions
• OMB Circulars
• Program Applicability
• Allocable
• Allowable
• Reasonable
• Necessary

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Matching

• Match
• Must be verifiable from recipient records
• Must not be included as contribution for other
  federally-assisted program
• Must be necessary and reasonable for
  accomplishing program objectives
• Must be allowable according to cost principles
  (OMB Circulars)

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Documentation

• Grantees must maintain adequate documentation to
  support amounts claimed as match.
• Documentation requirements are for BOTH CNCS and
  Grantee share
• Documentation should also ensure that costs
• Conform to grant/contract limitations
• Are treated consistently
• Determined in accordance with Generally Accepted
  Accounting Principles (GAAP)

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Recording and Reporting In-Kind Contributions

• Documentation of In-kind contributions - same
  standards as other expenditures
• Documentation for In-Kind contributions must
  record donation and valuation of item. It should
  describe the donation in detail.
• In-kind contributions should be entered 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.
• Included in Financial Status Report submitted to
  the Corporation to be recognized as match

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Valuation of In-Kind Services Based on Fair
Market Value
Fair market value

• What-would-you-pay-if-it-was-not-donated?

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Documenting In-Kind Contributions Received
Document the basis for determining the value of
personal services, material equipment, building,
and land. Obtain written acknowledgement of the
contribution which should include Name and
signature of donor Date and Location of
donation Detailed description of
item/service Estimated value - Keep
a copy of the receipt in your files.
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In-kind Donation Documentation

• Donations, Letters / statements of costs that
  show the type of donation, value, and frequency
• Time and Effort Forms or others that show
  contribution of time to program by staff working
  on program . Staff rates costed based on
  professional rate.
• In Kind Receipt/Voucher Forms
• Federally approved Indirect Cost Rate Agreement
  including base of calculation needed for use as
  match.

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Acceptable Sources Of In-Kind Contributions -
Examples

• Professional Services
• Value of donated meeting space
• Value of administrative services provided by host
  agency
• Costs of training for members and staff
• Public service announcements
• Recognition events

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Volunteer Exception For Match

• Grantees match may not include the value of
  direct community services performed by volunteers
• Services that contribute to organizational
  functions such as accounting, training of staff
  or members can be counted as match, but are
  limited to elements of the grantees cost
  allocation plan.

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The ABCD Tutoring Program 1299 N Main Street,
Suite 110, Great City, Good State 00000-1234,
[phone], Fax [phone]
In-Kind Contribution Form
           
Name of Contributing Organization/Agency/Business/
Individual Address of Above Contributor
______________ Phone
__________________ Printed/Typed Name of
Contributors Authorized Signee ________________
Title _______________ Signature of
Authorized Signee _______________________________
_____ Date ______________
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Documentation Objective

• All in-kind contributions should contain
  documentation that supports
• What is the service or goods obtained
• Why the transaction is allowable for the grant
  purposes
• The value of the contribution
• Accounting records should trace back to source
  documentation
• If audited, a grantee may be required to get full
  supporting documentation from all donors unless
  available during the audit.

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Staff Activity Reporting Guidelines
Documentation Examples

• All salaries and wages charged to the Corporation
  grants must be supported by signed Time
  Attendance records except for
• State, Local and Indian Tribal governments which
  must comply with OMB A-87
• Educational Institutions which must comply with
  OMB A-21

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Contributed Services Valuation Financial
Accounting Standards (SFAS 116)

• Contributed services are recognized in the
  financial statements if the services received
• Create or enhance non-financial assets
• Require specialized skills and
• Are provided by individuals possessing those
  skills
• Would need to be purchased if not provided by
  donation

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Financial StatementsIn-Kind Contributions
Examples

• The following were donated to a grantee during
  the fiscal year
• Training services valued at 3,544
• Office space valued at 12,000
• Office supplies valued at 6,000
• Services of volunteers working side-by-side with
  service participants members valued at 10,000
• The following pages show the financial statement
  presentation

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6,000 12,000 3,544 21,544
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FINANCIAL STATEMENT WITHOUT IN-KIND CONTRIBUTIONS
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What happens when match is not met?

• Failure to meet statutory match during award
• Decreases in renewal funding
• Budget revision
• Possible disallowance of Federal share
• Close monitoring and special conditions, if
  necessary, on the grant
• Technical assistance
• Less competitive for other funding
• Possible hold on funds if members are affected
• Failure to meet statutory match at closeout
• Disallowance is required unless waived during
  award review and negotiation, grantee refunds
  federal funds
• Failure to meet budgeted match at closeout
• Less competitive in future awards
• Potential for disallowance on case-by-case basis
  if overmatching of living allowances is involved
  and not met

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Records Retention

• Retain all financial records
• 3 years from date of submission of final
  Financial Status Report
• If there is an on-going audit 3 years from final
  audit resolution

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Questions