Matching/Cost Share/Off Set

Session 66

Wednesday, May 25, 2011

National Extension and Research Officers Administrative

Conference

Anchorage, Alaska

Matching/Cost Share/Off SetPresented by:

Adriene WoodinBranch Chief

Awards Management DivisionOffice of Grants and Financial Management

NIFA-USDAawoodin@nifa.usda.gov

202-401-4320

Matching/Cost Share/Off Set• Definitions• Do’s and Don’ts• What’s Not Acceptable Matching• What is Allowable as Matching• Common Matching Costs• Valuing Donations• Other Information

Definitions• Cash Matching: The recipient’s cash

outlay, including the outlay of money contributed to the recipient by non-Federal third-parties.• Examples: The recipient’s cost to

purchase an item of equipment for use on the project; Salaries for staff time committed to project; purchase of supplies; travel of project staff.

Definitions

• In-Kind Contribution: The value of non-cash contributions of property or services. Includes use of facilities, use or donation of equipment, supplies, and other non-expendable property.

Definitions

• Third Party Matching: Any contribution to the project by an organization other than the recipient.• Can include cash or in-kind contributions.

Do’s and Don’ts• Funds used as matching for NIFA Awards:

• Cannot be used as matching for another Federally-assisted project or program

• May not be provided by another Federal award or agency unless specifically authorized by Federal Statute

• Must be for costs incurred specifically for project during project period

Do’s and Don’ts• Entire amount of required matching must be

secured at time of award• No “contingencies” allowed (i.e. Pending approval,

submission, or earning)• Includes Continuation Awards

• First year plus future year commitments must be secured in advance

• The sources and amounts of all matching should be summarized as part of the budget justification as a separate narrative (not combined with the Federal funds narrative)

What’s Not Acceptable Matching?• Funds provided from another organization for

another, similar project.• Can’t use funds twice

• The value of equipment previously purchased by, or donated to the recipient. • The purchase or donation must be specifically for the

project• Equipment must be used specifically for this project and

pro-rated to project usage

What’s Not Acceptable Matching?• Income expected to be earned during the project

period.• All matching must be in place at time of award.

• The income will not have been earned by then.

• Indirect Costs over the allowable limit (with the exception of the SCRI Program).

• When indirect costs are limited by program authorization, the recipient cannot claim more than the allowable limit.

What’s Not Acceptable Matching?

• Some matching may be deemed unallowable during the review process requiring additional matching resources.

• Award may be reduced or may not be issued if required matching is not met.

What’s Allowable as Matching Costs?• Any costs which would normally be allowable

under the applicable cost principles (OMB A-21 or A-122) for Federal funds would be allowable as matching

• Except for unrecovered indirect costs (with one exception)

• Costs must be specifically identifiable and directly benefiting the project.

Common Matching Costs

• Salaries/wages for project personnel

• Materials or Supplies

• Travel costs

• Office Rent

• Equipment costs

Valuing Donations

• Value of donated property (transfer of property ownership) should be based on fair market value at time of donation.

• Value should be established by an independent appraisal

Valuing Donations

• Value of donated space (usage) should not exceed the fair rental value of comparable space as established by an independent appraisal of similar space in the same area.• Value is not based on purchase price

Other Information• It is important that all matching is documented

with letters of commitment and cost justifications for both recipient and Third-party donors.

• An award with required matching cannot be issued until all matching has been verified as allowable, reasonable and secured.

• Continuation awards require matching verification for the entire length and amount of the award.

Questions?

For any questions regarding matching costs or any other grant issues, contact:

Awards Management Division – 202-401-4986 awards@nifa.usda.gov

Adriene Woodin, Branch Chief – 202-401-4320

or awoodin@nifa.usda.gov