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Grant Funds Matching in AmeriCorps and Other Programs. Briefing on Requirements and Practices. What is match?. “Match” is the share of a project’s 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

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Grant Funds Matching in AmeriCorps and Other Programs

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Grant funds matching in americorps and other programs l.jpg

Grant Funds Matchingin AmeriCorps and Other Programs

Briefing on Requirements and Practices

August 6, 2005


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What is match?

“Match” is the share of a project’s 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

August 6, 2005


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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.

August 6, 2005


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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

August 6, 2005


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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

August 6, 2005


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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

August 6, 2005


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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.

August 6, 2005


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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.

August 6, 2005


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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

August 6, 2005


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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 grantee’s approved indirect cost rate is greater than the 5% allowed by the AmeriCorps program, the unfunded difference can be counted towards the grantee’s matching obligation

August 6, 2005


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Sample grant budget

August 6, 2005


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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.

August 6, 2005


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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)

August 6, 2005


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What influences a grantee’s 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 isn’t 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.

August 6, 2005


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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

August 6, 2005


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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.

August 6, 2005


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Typical Financial Report

August 6, 2005


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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.

August 6, 2005


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Determination of Acceptability of Costs

  • Conditions in award letter

  • Provisions

  • OMB Circulars

  • Program Applicability

    • Allocable

    • Allowable

    • Reasonable

    • Necessary

August 6, 2005


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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)

August 6, 2005


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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)

August 6, 2005


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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

August 6, 2005


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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?

=

August 6, 2005


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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.

August 6, 2005


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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.

August 6, 2005


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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

August 6, 2005


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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 grantee’s cost allocation plan.

August 6, 2005


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The ABCD Tutoring Program

1299 N Main Street, Suite 110, Great City, Good State 00000-1234, (800) 555-1212, Fax 321-1234

In-Kind Contribution Form

Name of Contributing Organization/Agency/Business/Individual:

Address of Above Contributor: ______________ Phone #: __________________

Printed/Typed Name of Contributor’s Authorized Signee: ________________ Title: _______________

Signature of Authorized Signee: ____________________________________ Date: ______________

August 6, 2005


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Documentation Objective

  • All in-kind contributions should contain documentation that supports:

    • Whatis 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.

August 6, 2005


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Documentation Examples

Staff Activity Reporting Guidelines

  • 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

August 6, 2005


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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

August 6, 2005


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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

August 6, 2005


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Teach Tech - Statement of Activities

March 31, 2004

Revenues and Other Support

AmeriCorps Grant

$

56,000

Contributions

21,544

Total Revenues and Support

77,544

Expenses

Salaries and Living Expenses

39,400

Benefits

7,000

Consultants

1,000

Staff travel

1,000

Supplies

6,000

Communications

1,050

Rent

12,000

Donated Services

3,544

Depreciation expenses

4,000

Other expenses

1,590

Total Expenses

76,584

Excess of Revenues and Other Support Over Expenses

960

Beginning Net Assets

300,416

Ending Net Assets

$

301,376

6,000

12,000

3,544

21,544

August 6, 2005


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Teach Tech

Statement of Activities

March 31, 2002

Revenues and Other Support

AmeriCorps Grant

$

56,000

Total Revenues and Support

56,000

Expenses

Salaries and Living Expenses

39,400

Benefits

7,000

Consultants

1,000

Staff travel

1,000

Communications

1,050

Depreciation expenses

4,000

Other expenses

1,590

Total Expenses

55,040

Excess of Revenues and Other Support Over Expenses

960

Beginning Net Assets

300,416

Ending Net Assets

$

301,376

FINANCIAL STATEMENT

WITHOUT IN-KIND

CONTRIBUTIONS

August 6, 2005


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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

August 6, 2005


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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

August 6, 2005


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Questions

August 6, 2005


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