Cost Sharing 101: Calculating Cost Sharing for NEBHANDS and Beyond

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Cost Sharing 101 Calculating Cost Sharing for
NEBHANDS and Beyond

• Jenn Elliott
• University of Nebraska
• Public Policy Center

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Cost Sharing 101

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

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What is cost sharing, anyway?
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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)

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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

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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

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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 encourage you
  to help us meet our Federal requirements and
  demonstrate Nebraskas commitment to the project.

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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

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Federal Regulations

• Recipients must follow the Federal regulations
  set forth in the applicable OMB Circulars for
  their organization.
• 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

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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

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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

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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

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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 16.05/hour rate (Independent Sectors
  suggested rate)
• Conference and workshop attendance
• Supplies
• Expendable equipment office supplies,
  workshop/conference supplies, and classroom
  supplies, postage, etc.
• Personal Computers/Peripherals

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Examples continued

• Travel expenses
• Mileage, lodging, travel time
• Administrative Expenses
• Indirect staff support (directors time, support
  staff)
• Federal negotiated FA (indirect) rate

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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

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NEBHANDS Documentation

• Financial Status Report (FSR)
• Original 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.

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

• FSRs Due Quarterly
• January 16 (October-December)
• April 16 (January-March)
• July 16 (April-June)
• October 15 (July-September)
• Must submit a FSR each quarter, regardless of
  whether any funds have been expended during the
  reporting period
• Forms available at www.nebhands.nebraska.edu
• Funds must be spent by September 30, 2004

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Questions?
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Contact Info

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