“The Matching Game” Session 44 Tuesday, May 22, 2012 National Extension and Research Administrative Officer’s Conference Morgantown, West Virginia

“The Matching Game” Co-Presented by: Adriene Woodin Branch Chief Awards Management Division Office of Grants and Financial Management NIFA-USDA

Topics for Discussion NIFA Programs with Required Matching Matching Regulations Definitions Do’s and Don’ts What’s Not Acceptable Matching What is Allowable as Matching Common Matching Costs and Required Information Valuing Donations Matching Commitment Documentation/Pledge Agreements Summary

Programs With Required Matching The RFA will contain details on whether or not matching is required and what those requirements are. Programs requiring a matching commitment: AFRI Equipment Awards 100% of Federal Funds Cash match only

Programs With Required Matching Beginning Farmer and Rancher Development Program 25% of Federal Funds Cash or in-kind Third party contributions

Programs With Required Matching Specialty Crop Research Initiative (SCRI) 100% of Federal funds Cash or in-kind Third Party Contributions Allows unrecovered indirect costs as matching only on grantee provided matching costs

Programs With Required Matching Biomass Research and Development Initiative 20% of total project costs for Research projects 50% of total project costs for Demonstration projects Total Project Costs consists of requested Federal funds and proposed matching Cash or in-kind Third-party contributions

Programs With Required Matching Higher Education Challenge Grants 25%* of Federal funds Cash or in-kind Third Party contributions *Reduced from 100% requirement Community Food Program 100% of Federal funds Cash or in-kind Third Party contributions

Programs With Required Matching Women and Minorities in STEM Fields 100% of Federal funds Cash or in-kind Third Party contributions Special Needs Program 100% of Federal funds Cash or in-kind contributions No Third-Party contributions permitted

Programs With Required Matching These programs require matching only when the subject area is commodity specific: Integrated Programs 100% of total Federal funds Cash or in-kind Third-party contributions Subject to NIFA National Program Leader approval

Matching Regulations Governing regulations are : Office of Management and Budget (OMB) Circular A-110 (found at 2 CFR Part 215) Sub-part C: Post Award Requirements, Financial and Program Management Section 23. Cost Sharing or matching USDA 7 CFR Part 3019 Section Cost Sharing or Matching

Matching Regulations Award document will reference 7 CFR part 3019 which is USDA’s implementing regulation for A-110 Both provide guidance on allowable matching costs and how to value services and donated items

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. May be in the form of real property, equipment, supplies, and other non-expendable property.

Definitions Third Party Matching: Any contribution to the project by a non-Federal 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 Entire amount of required matching must be secured at time of award No “contingencies” allowed (i.e. Pending approval, submission, or earning)

Do’s and Don’ts 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) Values for recipient or third-party matching contributions of services and property shall be in accordance with the applicable cost principles

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 and Required Information Note: the same level of details required for justifying Federal funds is required for justifying matching funds. Salaries/wages for project personnel -provide the annual or hourly rate of pay, time commitment (number of hours, percentage of effort) and the task to be completed Salary rates deemed excessive may need to be justified

Common Matching Costs and Required Information Materials or Supplies – provide a list of materials or supplies expected to be purchased and an estimated cost for the item(s). Note – no “miscellaneous” items Travel costs – provide the purpose and destination (if known), number of trips, number of travelers, and the cost per trip.

Common Matching Costs and Required Information Office Rent - when there is a need for an office away from the main campus, office rent may be charged as a direct cost to the award. Facility must not be owned by the recipient organization and rent can not be included as a part of the indirect cost pool. Rent must be pro-rated to the project if space is shared. Provide monthly rental cost, square footage, and usage information.

Common Matching Costs and Required Information Equipment costs – provide details of the type of equipment and how it will be used. For an equipment purchase – include the purchase price. For donated used equipment – the value should not exceed the fair market value for equipment the same age and condition Provide details of how the value was determined

Common Matching Costs and Required Information Equipment costs (cont’d): For donated new equipment – full purchase value of newly purchased equipment if purchased specifically for the project. For loaned equipment - the value may not exceed the fair rental value. Provide details on how the value was determined and the amount of time it will be used.

Common Matching Costs and Required Information Volunteer staff time – same information as for salaries. Rate of volunteer labor should be consistent with that paid for similar work within the recipient’s organization or with that paid for similar work in the labor market. Excessive rates of pay for volunteer labor may need to be justified.

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 –Provide documentation referencing he valuation process

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 Value of donated supplies or materials shall not exceed the item’s fair market value at time of donation

Matching Commitment Documentation Recipient Matching Documentation: Letter of Commitment signed by the Authorized Representative (AR) Must include the dollar amount of the commitment and the dates of involvement (project period) Budget justification should include required detail information on matching costs How are matching funds being spent?

Matching Commitment Documentation Third-Party Cash and In-Kind Contributions: Recipient organization should show third-party contributions in “Other Direct Cost” section of the budget and budget narrative. If recipient organization is using the third-party cash match to pay for own expenses, the costs would be distributed in the applicable budget categories (i.e.travel, salaries, etc.) where they will be spent. Details on how funds are being spent must be provided. Same level of details required as for Federal funds.

Matching Commitment Documentation Third-Party Cash and In-Kind Contributions: Cost-sharing commitments by a Third-Party must include Pledge Agreement from the contributing organization’s AR, counter-signed by the recipient organization’s AR. Counter-signature not required if submitted with the proposal Pledge agreement should also state whether the matching is cash or in-kind

Pledge Agreements Separate pledge agreement required for each donor. Submitted on donor letterhead with the name, address and telephone of organization Signed by AR of donor organization with title of person signing listed

Pledge Agreements Pledge agreements must include: Title of project for which the donation is being made The dollar amount or good faith estimate of the donation or contribution At statement the donation will be made during the grant period (dates)

Pledge Agreements Third-Party Cash Contributions: Project costs to be incurred and paid by the Third Party Include information on how the funds will be spent (i.e. salary, travel, materials and supplies – provide details on costs)

Summary 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.

Questions? For any questions regarding matching costs or any other grant issues, contact:  Awards Management Division –  Adriene Woodin, Branch Chief – or