Appendix F to Part 1128 - Terms and Conditions for FMS Article VI, “Cost Sharing or Matching”
2:1.2.8.6.13.7.64.7.33 : Appendix F
Appendix F to Part 1128 - Terms and Conditions for FMS Article VI,
“Cost Sharing or Matching”
Unless a DoD Component reserves FMS Article VI in its entirety,
reserves one or more paragraphs within sections of the article, or
includes added or alternate wording, as permitted by §§ 1128.610
through 1128.635, a DoD Component's general terms and conditions
must use the following wording for FMS Article VI.
FMS Article VI. Cost Sharing or Matching (DECEMBER 2014)
Section A. Required cost sharing or matching.
1. If any cost sharing or matching is required under this award,
the total amount or percentage required is shown in the award cover
pages and included in the approved budget. That cost sharing or
matching includes all:
a. Cash contributions to the project or program either made by
or through (if made by a third party) you and any
subrecipients.
b. Third-party in-kind contributions to the project or
program.
2. You must obtain our prior approval if you wish to:
a. Change the amount or percentage of cost sharing or matching
required under this award.
b. [Reserved].
Section B. Allowability as cost sharing or matching. Each
cash or third party in-kind contribution toward any cost sharing or
matching required under this award, whether put forward by you or a
subrecipient under a subaward that you make, is allowable as cost
sharing or matching if:
1. You (or the subrecipient, if it is a subrecipient
contribution) maintain records from which one may verify that the
contribution was made to the project or program and, if it is a
third-party in-kind contribution, its value.
2. The contribution is not counted as cost sharing or matching
for any other Federal award.
3. The contribution is:
a. Allowable under the cost principles applicable to you (or the
subrecipient, if it is a subrecipient contribution) under FMS
Article III of these terms and conditions; and
b. Allocable to the project or program and reasonable.
4. The Government does not pay for the contribution through
another Federal award, unless that award is under a program that
has a Federal statute authorizing application of that program's
Federal funds to other Federal programs' cost sharing or matching
requirements.
5. The value of the contribution is not reimbursed by the
Federal share of this award as either a direct or indirect
cost.
6. The contribution conforms to the other terms and conditions
of this award, including the award-specific terms and
conditions.
Section C. Allowability of unrecovered indirect costs as cost
sharing or matching. You may use your own or a subrecipient's
unrecovered indirect costs as cost sharing or matching under this
award. Unrecovered indirect costs means the difference between the
amount of indirect costs charged to the award and the amount that
you and any subrecipients could have charged in accordance with
your respective approved indirect cost rates, whether those rates
are negotiated or de minimis (as described in 2 CFR
200.414(f)).
Section D. Allowability of program income as cost sharing or
matching. If FMS Article VII of these general terms and
conditions or the award-specific terms and conditions of this award
specify that you are to use some or all of the program income you
earn to meet cost-sharing or matching requirements under the award,
then program income is allowable as cost sharing or matching to the
extent specified in those award terms and conditions.
Section E. Valuation of services or property that you or
subrecipients contribute or donate. You must establish values
for services or property contributed or donated toward cost sharing
or matching by you or subrecipients in accordance with the
provisions of this section. These contributions or donations are
distinct from third-party in-kind contributions to you or
subrecipients, which are addressed in Section F of this
article.
1. Usual valuation of services or property that you or
subrecipients contribute or donate. Values established for
contributions of services or property by you or a subrecipient must
be the amounts allowable in accordance with the cost principles
applicable to the entity making the contribution (i.e., you
or the subrecipient), as identified in FMS Article III. For
property, that generally is depreciation.
2. Needed approvals for, and valuation of, property that you
or subrecipients donate.
a. Types of property that may be donated.
i. Buildings or land. If the purposes of this award
include construction, facilities acquisition, or long-term use of
real property, you may donate buildings or land to the project if
you obtain our prior approval. Donation of property to the project,
as described in PROP Article I, means counting the value of the
property toward cost sharing or matching, rather than charging
depreciation.
ii. Other capital assets. If you obtain our prior
approval, you may donate to the project other capital assets
identified in 2 CFR 200.439(b)(1) through (3).
b. Usual valuation of donated property. Unless you obtain
our approval as described in paragraph E.2.c of this article, the
value for the donated property must be the lesser of:
i. The value of the remaining life of the property recorded in
your accounting records at the time of donation, or
ii. The current fair market value.
c. Approval needed for alternative valuation of property.
If you obtained our approval in the approved budget, you may count
as cost sharing or matching the current fair market value of the
donated property even if it exceeds the value of the remaining life
of the property recorded in your accounting records at the time of
donation.
d. Federal interest in donated property. Donating
buildings, land, or other property to the project, rather than
charging depreciation, results in a Federal interest in the
property in accordance with PROP Article I of these terms and
conditions.
Section F. Valuation of third-party in-kind
contributions.
1. General. If a third party furnishes goods or services
to you or subrecipients that are to be counted toward cost sharing
or matching under this award, the entity to which the third party
furnishes the goods or services (i.e., you or a
subrecipient) must document the fair market value of those in-kind
contributions and, to the extent feasible, support those values
using the same methods the entity uses internally.
2. Valuation of third-party services. You must establish
values for third-party volunteer services and services of third
parties' employees furnished to you or subrecipients as
follows:
a. Volunteer services. Volunteer services furnished by
third-party professional and technical personnel, consultants, and
other skilled and unskilled labor must be valued in accordance with
2 CFR 200.306(e).
b. Services of third parties' employees. When a
third-party organization furnishes the services of its employees to
you or a subrecipient, values for the contributions must be
established in accordance with 2 CFR 200.306(f).
c. Additional requirement for donations to nonprofit
organizations. For volunteer services or services of third
parties' employees furnished to a nonprofit organization:
i. OMB guidance in 2 CFR 200.434(e) also applies and may require
the nonprofit organization to allocate a proportionate share of its
applicable indirect costs to the donated services.
ii. The indirect costs that the nonprofit organization allocates
to the donated services in that case must be considered project
costs and may be either reimbursed under the award or counted
toward required cost sharing or matching, but not both.
3. Valuation of third-party property. You must establish
values for third-party property furnished to you or subrecipients
as follows:
a. Supplies donated by third parties. When a third-party
organization donates supplies (e.g., office, laboratory,
workshop, or classroom supplies), the value that may be counted
toward cost sharing or matching may not exceed the fair market
value of the supplies at the time of donation.
b. Equipment, buildings, or land donated by third
parties.
i. The value of third-party donations of equipment, buildings,
or land that may be counted toward cost sharing or matching when
the third party transferred title to you or a subrecipient depends
on the purpose of the award in accordance with the following:
(A) If one of the purposes of the award is to assist you or the
subrecipient in the acquisition of equipment, buildings, or land,
you may count the aggregate fair market value of the donated
property toward cost sharing or matching.
(B) If the award's purposes instead include only the support of
activities that require the use of equipment, buildings, or land,
you may only charge depreciation unless you obtain our prior
approval to count as cost sharing or matching the fair market value
of equipment or other capital assets and fair rental charges for
land.
ii. The values of the donated property must be determined in
accordance with the usual accounting policies of the entity to
which the third party transferred title to the property, with the
qualifications specified in 2 CFR 200.306(i)(1) and (2) for donated
land and buildings and donated equipment, respectively.
c. Use of space donated by third parties. If a third
party makes space available for use by you or a subrecipient, the
value that you may count toward cost sharing or matching may not
exceed the fair rental value of comparable space as established by
an independent appraisal, as described in 2 CFR 200.306(i)(3).
d. Equipment loaned by third parties. If a third party
loans equipment for use by you or a subrecipient, the value that
you may count toward cost sharing or matching may not exceed its
fair rental value.