Cost Sharing 101: Calculating Cost Sharing for NEBHANDS and Beyond

1
Cost Sharing 101 Calculating Cost Sharing for
NEBHANDS and Beyond

• Jenn Elliott
• University of Nebraska
• Public Policy Center

Presented June 28, 2005
2
Cost Sharing 101

• What is it?
• Why?
• What are the rules?
• Examples
• Financial Status Reporting

3
What is cost sharing, anyway?
4
Cost Sharing is

• The specific portion of total costs of a project
  or program that is not funded by the sponsor.
• Pledged by the awardee or collaborating partners
• Also known as
• Matching Contribution
• Cash outlay
• In-Kind Contribution
• Non-cash contributions
• From any source (donations, non-federal grants,
  volunteer time)

5
Types of Cost Sharing

• Mandatory
• Required by the funder in order to receive award
• Voluntary
• Cost associated with a project, but not required
  by the sponsor

6
Why?

• Demonstrates impact of grant funds
• extends beyond the funders money and helps them
  understand how money being spent
• Political support
• establishes importance of project to other
  parties beyond the government
• Sustainability
• proves support of project beyond the life of the
  grant

7
Why?

• NEBHANDS
• Cost Sharing is a requirement for the Compassion
  Capital Fund grant as a condition to obtaining
  the award. The PPC and its technical assistance
  partners have committed to matching contributions
  for Federal dollars received. This award is a
  50 match. For every 2 received, the PPC and
  its TA partners must match 1.
• The PPC has not required cost sharing for
  sub-award recipients, but strongly encourages you
  to help us meet our Federal requirements and
  demonstrate Nebraskas commitment to the project.
  Reporting cost match for NEBHANDS also gives you
  valuable experience when obtaining future Federal
  grants.

8
Cost sharing is just like federal money in that
it

• Must follow the same cost principles as federal
  dollars
• Must contribute in a meaningful way to the
  projects objectives
• Must have a monetary value

9
Federal Regulations

• Recipients must follow the Federal regulations
  set forth in the applicable OMB Circulars for
  their organization.
• Title 45 Code of Federal Regulations (CFR) Part
  74
• http//www.access.gpo.gov/nara/cfr/waisidx_03/45cf
  r74_03.html
• OMB Circular A-110, Uniform Administrative
  Requirements for Grants and other agreements with
  Institutions of Higher Education, Hospitals, and
  other Non Profit Organizations
• http//www.whitehouse.gov/omb/circulars/a110/a110.
  html
• AND

10
Federal Regulations

• Non-Profit Organizations
• OMB Circular A-122, http//www.whitehouse.gov/omb/
  circulars/a122/a122.html
• State, Local, and Indian Tribal Governments
• OMB Circular A-87, http//www.whitehouse.gov/omb/c
  irculars/a087/a087-all.html
• Educational Institutions
• OMB Circular A-21, http//www.whitehouse.gov/omb/c
  irculars/a021/a021.html

11
Cost Sharing Rules

• All cost sharing contributions
• (1) Are verifiable from the recipient's records.
• (2) Are not included as contributions for any
  other federally-assisted project or program.
• (3) Are necessary and reasonable for proper and
  efficient accomplishment of project or program
  objectives.
• (4) Are allowable under the applicable cost
  principles.
• OMB Circular A-110, Subpart C, _.23

12
Rules Continued

• (5) Are not paid by the Federal Government under
  another award, except where authorized by Federal
  statute to be used for cost sharing or matching.
• (6) Are provided for in the approved budget when
  required by the Federal awarding agency.
• (7) Conform to other provisions of the Circular,
  as applicable.
• OMB Circular A-110, Subpart C, _.23

13
Examples

• Staff time
• Includes actual staff time, project planning,
  meetings with NEBHANDS staff, NEBHANDS committee
  involvement, etc.
• Valued at the employee's regular rate of pay
  (plus fringe benefits)
• Volunteer time
• Value at 17.55/hour rate (Independent Sectors
  suggested rate for 2004)
• Conference and workshop attendance
• Supplies
• Expendable equipment office supplies,
  workshop/conference supplies, and classroom
  supplies, postage, etc.
• Personal Computers/Peripherals

14
Examples continued

• Travel expenses
• Mileage, lodging, travel time
• Administrative Expenses
• Indirect staff support (directors time, support
  staff)
• Federal negotiated FA (indirect) rate
• Other grants or private funds received to support
  the project
• Fund-raising campaigns, donations, local or
  foundation grants received
• Can not be other Federal funds

15
Unallowable Cost Sharing

• Expenses deemed unallowable by the appropriate
  OMB Circular (alcohol, entertainment, etc.)
• No religious worship, prayer, instruction, or
  evangelization time or materials
• Cost sharing using other federal funds (with rare
  exception)
• Unrelated to objectives of the project

16
NEBHANDS Documentation

• Financial Status Report (FSR)
• Original FSR to Public Policy Center (PPC) each
  quarter
• Organizations Internal Documentation
• Each organization responsible for keeping
  detailed records on file (see OMB Circulars A-110
  and A-133 for audit requirements).
• Records include amount and basis for determining
  value
• Examples
• Time sheets/Activity logs
• Attendance sheets
• Receipts
• Commitment letters
• Not necessary to submit detailed records to the
  PPC.

17
Financial Status Reporting
Example 1
Initial Report
18
Financial Status Reporting
Example 2
Subsequent Reports
19
Financial Status Reporting
Example 3
No Expenditures
20
Financial Status Reporting
Example 4
Funds Not Yet Received
21
FSR Reporting Requirements

• FSRs Due Quarterly
• January 14, 2005 (October-December)
• April 15, 2005 (January-March)
• July 15, 2005 (April-June)
• October 14, 2005 (July-September)
• Must submit a FSR each quarter, regardless of
  whether any funds have been expended during the
  reporting period. Must submit original, signed
  form.
• Forms available at http//www.nebhands.nebraska.ed
  u/Formspg.htm
• Funds must be spent by September 30, 2005

22
2005 Reporting Timeline

• January 14, 2005 (for October 1 December 31,
  2004 period)
• Financial Status Report (FSR)
• Progress Report
• April 15, 2005 (for January 1 March 31, 2005
  period)
• Financial Status Report (FSR)
• Progress Report
• Evaluation Survey
• Success Stories
• July 15, 2005 (for April 1- June 30, 2005 period)
• Financial Status Report (FSR)
• Progress Report
• October 14, 2005 (for July 1 September 30,
  2005)
• Financial Status Report (FSR)
• Progress Report
• Evaluation Survey
• Success Stories

23
Questions?
24
Contact Info

• Jenn Elliott
• Public Policy Center
• 121 S. 13th St., Ste 303
• Lincoln, NE 68588-0228
• [phone]
• jelliott_at_nebraska.edu