Program Income must be identified and requires one of the following treatments based on the agency’s regulations:
- Add to project funds to further program objectives
- Use to finance the non-federal share of the program
- Deducted from project costs in determining federal share of net costs (applies automatically if not specified)
The UG defines cost sharing (or matching) as that portion of project or program costs not borne by the agency. The total amount of the cost share required will be listed on FRAGRNT under “Total Recipient Share”. Cost sharing discussed in the narrative, budget or budget justification of any proposal is considered voluntary committed cost sharing and must be documented and tracked for audit purposes.
Cost share is monitored to ensure it is proportionate to direct costs incurred. If not proportionate within a reasonable amount, expenses will not be invoiced. Allowability of costs follows the prime award. In-kind contributions must include appropriate source documentation. Documentation must show that the in-kind contributions meet all seven of the UG’s criteria for cost share:
- Are verifiable from the non-Federal entity’s records;
- Are not included as contributions for any other Federal award;
- Are necessary and reasonable for accomplishment of project or program objectives;
- Are allowable under Subpart E—Cost Principles of this part;
- Are not paid by the Federal government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs;
- Are provided for in the approved budget when required by the Federal awarding agency; and
- Conform to other provisions of this part, as applicable.
Documentation can include a list of volunteers, dates and hours worked and rate of pay, and current fair market value of donated property or equipment.
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