Documentation, Cash & In-Kind Match

1. Documentation, Cash & In-Kind Match

2. Session Objectives • Gather information on proper documentation • Allowable, allocable & reasonable costs • Gain knowledge of types of match

3. Defining Source Documentation • Reasonable, allocable, allowable • Conform to grant/contract limitations • Treated consistently • In accordance with Generally Accepted Accounting Principals (GAAP)

4. Finding Source Documentation • INTERNAL • Time and activity • Purchase orders • Compliance, financial reports to grantors or grantees • Ledgers: cash receipts, payroll disbursements

5. Finding Source Documentation • EXTERNAL • Bank statements • Vendor invoices • Grantor/grantee report • Matching reports • In-kind contribution form

6. Classifying the Information • Supporting documentation: • 1. What is the service obtained? • 2. Why is the transaction allowable? • 3. Where is the source documentation? • 4. What is the value of the contribution?

7. Why Source Documentation? • To track incoming information • To review information • To provide evidence of accomplishments • To document and audit

8. Maintaining Source Documentation • Filing Cabinet • In grants management office? • In accounting department? • In Executive Director’s office? • By vendor? • Alphabetically? • By month? • By grantor/grantee?

9. Retaining Source Documentation • Retain all financial records for: • 3 years from date of submission of final Financial Status Report • 3 years from final audit resolution

10. Documenting Examples • Salary • Benefits • Training • Travel • Admin

11. Identifying Source Documentation • Salary • Signed timesheets with supervisory approval • Quarterly payroll returns (941) • Payroll register • Personnel file with salary/wage information • Cancelled checks/Direct deposit schedule

12. Staff Activity Reporting Summary • All salaries and wages charged to AmeriCorps grants must be supported by Time & Attendance records except for: • State, Local and Indian Tribal governments must comply with A-87 • Educational institutions must comply with A-21

13. Time & Activity Reporting • OMB A-122 requirements of documentation for Activity reporting: • Must reflect an after-the fact distribution of the employee actual activity • Must account for the total activity of each employee • Must be prepared at least monthly and should coincide with one or more pay periods • Must be signed by the employer & supervisor (or supervisor having first-hand knowledge)

14. Identifying Documentation • Benefits • Insurance receipts • Cost allocation plan • Paid invoices

15. Identifying Documentation • Travel • Authorization/reimbursement requests • Receipts/invoices • Per diem rates (applicable to region) • Mileage calculation • Reconciliation of advances to payments

16. Training Documentation • Training • Agenda • Course description, cost • Sign-in sheet • Consultant/trainer agreement • Paid invoices

17. Match • The ultimate goal is sustainabilty!!! • Grantees must meet minimum requirements of 50% overall match by year 10 ($1 for every CNCS $1)

18. Talking Technical • Cost-sharing or Matching – Portion of projects or program costs not paid by the Federal Share (CNCS) • Federal Share – Percentage of the program costs paid for with Federal Funds

19. More Technical Talk • Program Income – Gross income earned by recipient directly generated by a supported activity or earned as a result of the award

20. More Technical Talk • In-Kind Contributions • Value of non-cash contributions provided by third parties • May be in the form of real property, equipment, supplies and other expendable property • Value of goods, services directly benefiting and necessary to the project or program

21. Types of Match • Statutory – Minimum matching amount the law, regulation requires grantees to provide • Regulatory – Minimum matching amount established by CNCS regulations that may be higher than statutory requirement • Budgeted – Amount of match grantee providing based on budget, budget narrative, and program narrative contained in grant application may be greater than required statutory match

22. Finding Your Match • Cash: • Donations • Non-federal income • State appropriations • Foundation grants or corporate contributions

23. Finding Your Match • In-Kind contributions: • Value of donated services and/or donated goods

24. Finding Your Match • Unutilzed indirect cost rate – The portion of indirect costs not allowed by CNCS in Federal Share

25. Important rule to Remember! • Government-wide, with few rare exceptions, Grantees cannot use other Federal funds as match

26. AmeriCorps Match Requirements Years 1-3: 24% Year 4: 26% Year 5: 30% Year 6: 34% Year 7: 38% Year 8: 42% Year 9: 46% Year 10: 50%

27. Matching Fund Requirements • Match funds must be: • Verifiable from recipient records • Necessary & reasonable for accomplishing program objectives • Allowable according to cost principles (OMB Circulars) • Incurred during same period as project

28. Matching Fund Requirements • Match funds must be: • Verifiable from recipient records • Necessary & reasonable for accomplishing program objectives • Allowable according to cost principles (OMB Circulars) • Incurred during same period as budget

29. Determining Acceptability of Costs • Conditions in application/award letter/grant agreement • Provisions • OMB Circulars • Program Applicability • Allocable • Allowable • Reasonable • Necessary

30. Volunteer Exception for Match • Do NOT count as match- • The value of direct community services performed by volunteers • DO count as match- • Services that contribute to organizational functions • Count services such as accounting, training of staff or Members that are elements of the grantee’s cost allocation plan

31. Documentation Objective • Document in-kind contributions to show: • What services or goods were obtained • Why transaction is allowable for grant purposes • The value of the contribution • How it is traced back to source documentation • (If audited, a grantee may be required to get full supporting documentation from all donors if not available during the audit)

32. Documenting Match • Maintain adequate documentation to support amounts claimed as match • Maintain same documentation for both CNCS and for the grantee’s share

33. Documenting Match • Documentation should also ensure that costs: • Conform to grant/contract limitations • Are treated consistently? • Determined in accordance with Generally Accepted Accounting Principles (GAAP)

34. Recording In-Kind • Documentation must meet same standards as other expenditures • Record donation and valuation of item in detail • Enter the general ledger as income and expenditure • Failure to enter match contributions into general ledger requires a formal explanatory policy and separate spreadsheet accountability of receipt and use

35. Valuing In-kind Donations • Utilize Quoted Market Price • Consider what it would cost to obtain similar good or service • Value of donation should be placed by the donor • Review donation letter or form to ensure the value is reasonable • Anything above $5,000 must be valued by an independent evaluator

36. Documenting In-Kind • Document the basis for determining value of personal services, material equipment, building and land • Obtain written acknowledgement of the contribution including: • Name and signature of donor • Date and location of donation • Detailed description of item/service • Estimated value (up to donor to give you the value)

37. In Conclusion • Familiarize staff with documentation requirements • Supporting documentation relates directly to expense for CNCS grant • Establish documentation for expenditure requirements: reasonableness, necessity, allocability, allowability, and adherence to grant guidelines • Maintain proper record retention policy