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Normandale Community College Policies and Procedures

9.8.1 Matching Funds Procedure

Related Minnesota State Board Policy: N/A

Related Minnesota State Board Procedure: N/A

Purpose: To describe the processes for tracking and documenting matching funds or cost sharing in order to comply with requirements established by the Uniform Guidance or by the relevant Federal agency.

Part 1: Pre-Award

In all matching fund or cost sharing situations, the Principal Investigator (PI)/Project Director (PD) will indicate any requirements in the preliminary grant approval form. Upon Cabinet approval, the PI/PD will work with the Office of Grants & Sponsored Projects to determine the amount and type(s) of matching or cost sharing that will be used. Final amounts, percentages, and sources must be approved by the Vice President of the relevant area and the Vice President of Finance and Operations.

Part 2: Post-Award

Upon award notification, the Grants Accountant and the Grants Specialist review the grant agreement to determine matching funds or cost sharing requirements at the “kick-off” meeting.

During the project kick-off meeting, match requirements, including any reporting requirements, data information collection formats and Normandale personnel who are responsible for tracking, are discussed. Included in this meeting are the PI/PD, the Grants Specialist, and the Grants Accountant.

Subpart A: Mandatory Matching Funds

  1. For grants with a mandatory cash match requirement, a non-mandatory transfer is made into the grant costs center by the Fiscal Services department. The unique project number is used to segregate, by grant award, the budgeted and actual expenditures within Normandale’s financial records.
  2. The annual cash match budget is entered into the general ledger under the assigned project number.
  3. For Federal awards, Normandale’s Period of Performance and Allowability of Costs policy is used to process expenditures.
  4. In-kind contributions are not recorded in ISRS, but are instead tracked by the Office of Grants & Sponsored Projects using spreadsheets.
    1. In-kind Staff/Faculty time is tracked and confirmed according to Normandale Policy 9.1. The Office of Grants & Sponsored projects calculates the value of the in-kind time based on the amount of time spent on the project and the employee’s actual wage and fringe rates.
    2. In-kind services provided by Normandale or a third party are tracked by the PI/PD. The fair market value of the service is determined by the service provider, approved by the PI/PD, and must be in accordance with 2 CFR 200 Part E. The PI/PD is responsible for maintaining proper documentation for the services provided to support the fair market value reported. The PI/PD provides the Office of Grants & Sponsored Projects with a description of the services, fair market value, and any other documentation required for financial reporting.
    3. In-kind property provided by Normandale or a third party is tracked by the PI/PD. The cost or fair market value of the property is determined by the provider of the property, approved by the PI/PD, and must be in accordance with 2 CFR 200 Part E. The PI/PD is responsible for maintaining proper documentation for the property provided to support the cost or fair market value reported. The PI/PD provides Grants Accounting with a description of the property, cost or fair market value and any other documentation required for financial reporting.
    4. Unrecovered indirect costs are calculated by the Grants Accountant if the Federal awarding agency allows them to be included in matching funds. Unrecovered indirect costs are the difference between the amount of indirect charged to the Federal award and the amount which could have been charged using Normandale’s approved negotiated indirect cost rate.
    5. The Office of Grants & Sponsored Projects is responsible for maintaining a summary of in-kind contributions.
  5. The Office of Grants & Sponsored Projects will communicate periodically with the PI/PD to provide an update on whether the grant match requirements are being met.
  6. The Grants Accountant is responsible for preparing financial reports for Federal grants, which may include information regarding matching funds.
    1. The Grants Accountant will determine if grant match requirements have been met upon completion of the annual or final financial report and if it is necessary to return any Federal funds.

Subpart B: Voluntary Committed (Dollar Value) Matching Funds

  1. For grants with a voluntary committed match, Normandale does not use ISRS but instead tracks all matching funds using spreadsheets.
    1. Cash contributions are tracked by the PI/PD. The PI/PD provides the Office of Grants & Sponsored Projects with a description of the item, the cost, and any other documentation required for financial reporting.
    2. In-kind contributions are tracked using the methods described in Subpart A.
    3. Grants & Sponsored Projects staff will communicate periodically with the PI/PD to provide an update on whether the voluntary grant match commitment is being met.
    4. The Grants Accountant is responsible for preparing financial reports for Federal grants, which may include information regarding matching funds.

Subpart C: Voluntary Uncommitted (No Dollar Value) Matching Funds

  1. For grants with a voluntary uncommitted match, Normandale does not use ISRS. Matching funds are tracked using spreadsheets if the Federal awarding agency has requested that the information be reported.
  2. If matching funds are tracked at the request of the Federal awarding agency:
    1. Cash contributions are tracked by the PI/PD. The PI/PD provides the Grants Accountant with a description of the item, the cost, and any other documentation required for financial reporting.
    2. In-kind contributions are tracked using the methods described in Subpart A.
    3. Grants & Sponsored Projects will communicate periodically with the PI/PD to provide an update on the status of the voluntary grant match.
    4. The Grants Accountant is responsible for preparing financial reports for Federal grants, which may include information regarding matching funds.

Procedure History:

Date of Adoption: 4/02/2019

Department Owner: Grants

Date and Subject of Revisions:

Next Review Date: 4/02/2023