Match & Leveraged Resources. What is the difference? Why is it important?

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Match & Leveraged Resources What is the difference? Why is it important?

Learning Objectives Describe the difference between match and leveraged resources Determine how cash and in-kind match and leveraged resources are valued Describe the proper reporting of all leveraged resources Identify some of the common challenges faced by grantees in valuing, tracking and reporting match and leveraged resources

Why is this workshop important? Distinction poses challenges for grantees. Dispel common misconceptions about reporting match and leveraged resources Failure to meet requirements can lead to grant reduction or disallowed costs Stand-in costs

Match AKA Cost Sharing

What is match? Additional non-federal funds expended to support grant objectives If required by statute as a condition of funding. Must be spent on allowable grant activities

Does my grant have a match requirement? Legislation Regulation SGA Solicitation for Grant Application

Two Types of Match Expenditures Cash expenditures Funds or services provided and paid for by grantee or subrecipient from non-federal funds Allowable services under grant 3 rd party cash contribution to grantee spent by the grantee on allowable costs In-kind contributions Products, space or services provided by a third party organization and not paid for by grantee or subgrantee

Cash Match Examples Personnel services Grantee/subrecipient staff Services Equipment & supplies Space Costs are paid for by grantee/subrecipient but not charged to grant funding source Must be documented

In-Kind Contribution Examples Personnel services Volunteers or paid non-grantee staff Services Equipment & supplies Space Valuation requirements 2 CFR 200.306 Must be documented

In-Kind Valuation Personnel Services Individual performing regular job activity Regular rate of pay + allocable fringes Individual performing other volunteer services Rates consistent with recipient pay for like work or Rates of other local area pay for similar work Include reasonable amount for fringe benefits

In-Kind Valuation (cont.) Loaned equipment Fair rental value Donated equipment or supplies Fair market value at time of donation or Depreciation or use allowance [when item has long term value] Donated space use Fair rental valueof comparable space Depreciation or use allowance Donated buildings and land Depreciation or use allowance

Match Exclusions Costs Paid for with Federal funds Used as match for other Federal program Construction/purchase of facilities (WIA) Charged to program income Difference between earnings and costs

Knowledge Check How would I know if there is a match requirement for my grant? Cash or in-kind? - Grant-related services paid for by the grantee. Cash or in-kind? - A third party donates the use of training equipment at their shop for program participants to support the project.

Records Source documentation Books of account Available for audit & review Support for 3rd party contributions Verifiable from subgrantee records or Maintained by grantee Methods used to value in-kind

Additional Match Considerations Can t be BOTH match and allowable grant cost No administrative cost limitation

Valuing In-Kind Personnel Services If privacy rules make it difficult to obtain a volunteer s compensation information, can the grantee use local Labor Market Information wage data to determine those costs?

What are Leveraged Resources?

What are Leveraged Resources? Not defined in statute, regulation or administrative requirements All resources used by grantee to support grant activity Must be on costs allowable under OMB Cost Principles 2 CFR Subpart E Sum of both allowable match and non-match resources

What are Leveraged Resources? (cont.) Allowable match Non-Federal funds used for grant purposes Cash and in-kind Non- Match Allowable Match Non-match Funds available for the project that don t meet criteria for allowable match Other Federal resources provided by grantee or subrecipient Allowable under OMB Cost Principles but not grant program

Examples of Leveraged Resources Not qualify as match Services provided to grant participants funded by another Federal grant Purchase or construction of a structure that would house grant activity using non-federal funds Employer release time Training curriculum donated for use by grantee

Reporting Match and Leveraged Resources

Reporting Match and Leveraged Resources Non-Match Portion reported on financial document Reported on the narrative progress report Non- Match Allowable Match Reported as recipient share on financial document Also reported on narrative progress report Allowable Match

Things to Consider

Grantee Challenges Grant application and performance narrative include leveraged resources Determining the value of cash and in-kind contributions Reporting stand-in costs When no match is required Documentation

Some Do s and Don ts DO: Read carefully to determine whether there is a match requirement for your grant Report all match expenditures Including excess of requirements DO NOT: Promise to provide more matching funds than required Include leveraged resources on the application budget

Budgets Only required match is shown on the budget form page Do not include leveraged resources on the budget form page Amounts shown on application budget Considered as match If not met, may lead to disallowance or grant reduction

Closeout If required Match is not met: Like amount of grant dollars will be unallowable Reduce allowable grant expenditure by short amount When Leveraged Resources not met: Grant Officer will determine penalty Less likely to be unallowable costs May impact future funding opportunities