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Stronger health systems. Greater health impact.Cost Share 101Definitions, Ideas, and Implications for LMGApril 2012Managem...
Objectives of This Cost Share Webinar  The first in a series of cost share webinars  Explain the concept of cost share a...
Cost Share in USAID AgreementsDefinitions A requirement for USAID-funded cooperative agreements  and grants Cost sharing...
What is Cost Share?    Cash contributions - money from foundations or     companies; donations, grants, buy-in from other...
What are the Rules about Cost Share? All contributions, including cash and in-kind, shall be accepted as part of the cost ...
Cash Contributions   Funding from non-USG sources   Documented and reported in USD          When you receive a cash cont...
In-Kind Contributions  Sometimes the only contribution a partner can make  Demonstrate partner contributions and commitm...
Types of In-Kind Contributions: Labor    Category               Examples             Valuation                Ideal       ...
Types of In-Kind Contributions: Labor     Category               Examples              Valuation               Ideal      ...
Types of In-Kind Contributions: Labor   Category           Examples               Valuation                     Ideal     ...
Types of In-Kind Contributions:Supplies and Materials  Category                   Examples                   Valuation    ...
Types of In-Kind Contributions: Equipment  Category             Examples             Valuation                Ideal       ...
Types of In-Kind Contributions: Space Category            Examples         Valuation                Ideal                 ...
Types of In-Kind Contributions: Training          Category                    Examples              Valuation             ...
Documentation Requirements  The basis for determining the valuation for personal services,   material, equipment, buildin...
LMG Cost Share Tools and Templates List of LMG Cost Share Reference Documents Partner Profile Form Cost Share Plan Templ...
Cost Share ExamplesManagement Sciences for Health   17
Non-USG Funded Projects as Cost Share It is possible to leverage non-USG funded projects  implemented in the LMG countrie...
Cost Share ExamplesEvents / Publications / Media / Marketing Co-sponsorship of project events, publications Transportati...
Cost Share ExamplesAccess to Specialized Skills Pro bono technical assistance as needed (access to specialized  skill set...
MSH Cost Share Contribution Examples  Updated existing training curricula and products provided as   contributions to a p...
Why is Cost Share Important to LMG? A contractually mandated deliverable – 20% of  obligated LMG Core and Field Support f...
LMG Contacts for Cost Share Questions Cost share opportunities identification, brainstorming,  development of cost share ...
Bottom line             Leveraging the LMG Project Cost Share is                          a Team Effort                   ...
Stronger health systems. Greater health impact.    Saving lives and improving the health    of the world’s poorest and mos...
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2012 04 23 cost share webinar 101 presentation

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  1. 1. Stronger health systems. Greater health impact.Cost Share 101Definitions, Ideas, and Implications for LMGApril 2012Management Sciences for Health 1
  2. 2. Objectives of This Cost Share Webinar  The first in a series of cost share webinars  Explain the concept of cost share as used on U.S. Government (USG) projects  Provide practical guidance for identifying and documenting cost share  Provide information on cost share tools available to the LMG Team  Provide information about roles and responsibilities on the LMG project regarding cost shareManagement Sciences for Health 2
  3. 3. Cost Share in USAID AgreementsDefinitions A requirement for USAID-funded cooperative agreements and grants Cost sharing or matching refers to a portion of project or program costs not borne by USGReferences: Office of Management and Budget (OMB) Circular A-110: definitions of terms Code of Federal Regulations (CFR) 2 CFR 215.23: guidance on valuation methods for in-kind contributions 22 CFR Part 226 “Administration of Assistance Awards to U.S. Non- Governmental Organizations”, Section 23, and “Mandatory Standard Provisions for U.S. Nongovernmental Recipients”Management Sciences for Health 3
  4. 4. What is Cost Share?  Cash contributions - money from foundations or companies; donations, grants, buy-in from other donors or organizations with non-USG funding.  Documented and tracked in US Dollars.  In-kind contributions - resources other than money that cover costs that would have been paid for with USG project funds, had they not been covered by the in-kind support.  Examples: volunteer services, loaned equipment or space, donated supplies, land, buildings, seconded staff paid by a partner, donated health products, and more.Management Sciences for Health 4
  5. 5. What are the Rules about Cost Share? All contributions, including cash and in-kind, shall be accepted as part of the cost sharing or matching when such contributions meet all of the following criteria: Are verifiable from the recipient’s records Are not included as contributions for any other federally-assisted project or program Are necessary and reasonable for proper and efficient achievement of project objectives Are allowable under the applicable cost principlesManagement Sciences for Health 5
  6. 6. Cash Contributions  Funding from non-USG sources  Documented and reported in USD When you receive a cash contribution:  Obtain written verification (letter) from the donor stating clearly the amount of the cash contribution and its purpose  Acknowledge receipt of the contribution in writing  Document currency conversion calculation at the time the contribution was made  Document exchange gain or loss, if relevantManagement Sciences for Health 6
  7. 7. In-Kind Contributions  Sometimes the only contribution a partner can make  Demonstrate partner contributions and commitment  Provide the true total cost of a project, when factored in as part of a project budget Important:  All financial records pertaining to a cash or an in-kind contribution should be retained for three (3) years from the date of submission of the financial report in which the contribution was reported.  Reasonableness of the contribution’s value: what would the donated item /service have cost if the project had paid for it? Use fair market or fair rental value!Management Sciences for Health 7
  8. 8. Types of In-Kind Contributions: Labor Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation Employee of GTZ employee Rate: valued at the A paystub or copy of Organizations salary Biodata another donating time, employees regular paycheck or current scale or Salary surveys organization University of Tanzania rate of pay plus copy of a contract or FSN scales or MSH employee donating fringe benefits stating employees pay scale for similar time exclusive of OH rate skill set & activity or provided that these other donor salary services are the scale same skill for which the employee is normally paid Quantity of A work log/timesheet Letter stating hours Timesheet or letter Time (LOE) itemizing hours spent spent on activity missing one or both on activity signed by signed by employee & signatures employee & supervisor/activity employees supervisor managerManagement Sciences for Health 8
  9. 9. Types of In-Kind Contributions: Labor Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation Independent Consultant donating Rate Copy of a Salary surveys or FSN Biodata Consultant - full time for an activity current/recent scales or what MSH rate contract for similar has paid for similar work which lists rate work before or other (daily/monthly/yearly) donor salary scale Quantity of A work log/timesheet Letter stating hours Timesheet or letter Time (LOE) itemizing hours spent spent on activity missing one or both on activity signed by signed by consultant signatures consultant & & supervisor/ activity supervisor/activity manager manager Independent Consultant providing Usual Rate minus Copy of a Salary surveys or FSN Biodata Consultant - service/working at a discounted rate = current/recent scales or what MSH discounted rate reduced rate cost share amount contract for similar has paid for similar work which lists rate work before or other (daily/monthly/yearly) donor salary scale that and letter stating the documents the usual discounted rate rateManagement Sciences for Health 9
  10. 10. Types of In-Kind Contributions: Labor Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation Volunteers drivers, community Rates consistent Salary surveys or FSN Biodata health workers, with those paid for scales or MSH pay construction similar work in the scale for similar skill recipients organization set and activity or what or in the labor market MSH has paid for in which the recipient similar work before competes for the or other donor kind of services involved salary scale Quantity of a work log/timesheet Timesheet or letter Time (LOE) itemizing hours spent on missing one or both activity signed by volunteer signatures and supervisor/ activity manager No Volunteer Type of Activity Work Dates No of work Volunteer Name days SignatureManagement Sciences for Health 10
  11. 11. Types of In-Kind Contributions:Supplies and Materials Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation NEW Expendable equipment, fair market value of Copies of receipts quotes from Letter stating office supplies, laboratory the property at the for donated vendors or receipts prices of donated supplies, workshop supplies time of donation supplies for similar items supplies purchased recently or current advertisements Supplies ON HAND Expendable fair market value of quotes from Letter stating equipment, office supplies, the property at the vendors or prices of donated laboratory supplies, workshop time of donation receipts for similar supplies supplies items purchased recently or current advertisements NEW training materials, fair market value i.e. see Labor presentation materials, manuals value of the time invested in producing materials ON HAND training materials, Fair market value of quotes from Materials manuals training materials & vendors or manuals at the time receipts for similar of the donation items purchased recently or current advertisementsManagement Sciences for Health 11
  12. 12. Types of In-Kind Contributions: Equipment Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation NEW audio-visual fair market value of quotes from vendors or equipment, equipment at the time receipts for similar photocopiers, lab of donation items purchased equipment recently or current advertisements Equipment USED audio-visual fair market value of quotes from used quotes on new equipment, equipment the same equipment vendors or equipment and written photocopiers, lab age and condition at receipts for similar calculation of equipment the time of donation items purchased depreciation or recently or current depreciation table advertisements Vehicles, Rate: fair rental value quotes from equipment Letter stating the photocopiers, leasing vendors or number of refrigerators, receipts for like items days/months/ motorcycles, rented recently or years bicycles advertisements Equipment Loaned Quantity Letter stating the Equipment is loaned not number of signed days/months/years equipment is loaned signed by authorized official of loaning entityManagement Sciences for Health 12
  13. 13. Types of In-Kind Contributions: Space Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation Space Workshop Rate: fair rental Independent appraisal of Quote from other meeting room, value of comparable space and rental space vendors office space comparable space facilities in a privately- or recent lease owned building in the agreement for same locality comparable space Quantity Letter stating the number Copy of the lease Letter stating the of days/months/years agreement that number of donated signed by clearly states days/months/ authorized official of dates of rental years donated donor entity not signed or lease agreement that shows no datesManagement Sciences for Health 13
  14. 14. Types of In-Kind Contributions: Training Category Examples Valuation Ideal Acceptable Unacceptable Documentation Documentation Documentation Participant per Training days, Other donor per Official document Official documentParticipant diem partially site visit days, diem rates or CLM with training title, with training title, Training or fully paid study tour days local per diem venue, locality & venue, locality for by rates dates and a list of & dates and list another participants, amounts of participants organization given to each for per and per diem diem and participant rates used sign off that funds were received Participant Cost of Fair market value on Official document Official document travel partially transportation airline/bus/train with training title, with training or fully to and from tickets, other donor venue, locality & title, venue, paid for by home, to and transportation dates and copies of locality & dates another from hotel to reimbursement transportation and list of organization training venue, rates or LMG local receipts (airline participants site visits transportation rates tickets, bus, taxi ) and amounts for each participant given to each for transportation and participant sign off that funds were received Management Sciences for Health 14
  15. 15. Documentation Requirements  The basis for determining the valuation for personal services, material, equipment, buildings and land shall be documented  Examples of back-up documentation:  Donation letter / statement of costs that show the type of donation, value and frequency from a donor  Copy of bank statement (for cash contributions)  Time and efforts sheets / forms signed by supervisors  Rate calculations  In-kind receipts / voucher forms  Valuation of donated goods and use of space  Independent appraisals (for donated equipment, buildings or land)  Federally approved Indirect Rate Agreement (for US-based contributors as applicable)Management Sciences for Health 15
  16. 16. LMG Cost Share Tools and Templates List of LMG Cost Share Reference Documents Partner Profile Form Cost Share Plan Template Cost Share Guidance Cost Share Tracker Samples of MOU templates, receipt letter for cash contributions, and volunteer time sheets LMG forms, templates and quarterly reports will be stored and accessible via Central DesktopManagement Sciences for Health 16
  17. 17. Cost Share ExamplesManagement Sciences for Health 17
  18. 18. Non-USG Funded Projects as Cost Share It is possible to leverage non-USG funded projects implemented in the LMG countries as cost share, if:  Their objectives are relevant to the LMG objectives  Evidence, knowledge, tools, methodologies, and networks from these projects can be utilized to further LMG objectives  Non-USG funded research activities can inform LMG strategies and approaches or vice versa  No other USG-funded project claims the same cost share  The value added of the non-USG project is quantified according to USG guidance and attribution can be reasonably claimedManagement Sciences for Health 18
  19. 19. Cost Share ExamplesEvents / Publications / Media / Marketing Co-sponsorship of project events, publications Transportation and accommodation costs coverage Support for the LMG web portal Development / upgrades of IT solutions, platforms for knowledge exchange, sharing, etc. Pro bono public relations services, filming, production of documentaries, testimonials Contribution of air time, media buying services, product placement Pro bono development of branding and marketing plans for products developed by a LMG partnershipManagement Sciences for Health 19
  20. 20. Cost Share ExamplesAccess to Specialized Skills Pro bono technical assistance as needed (access to specialized skill sets that LMG may not have on staff in the US or in the field)  Audit (financial management of partnership funds, verification/validation of cost share reports in the field)  Specialized training  Marketing and PR  Specialized research skills, costing and modeling skills, etc.  Secondment of partner staff (pro bono, at discounted rates, etc.) Access to Partner Networks supply chain, communication, transportation, diaspora, and others Access to Products health and othersManagement Sciences for Health 20
  21. 21. MSH Cost Share Contribution Examples  Updated existing training curricula and products provided as contributions to a partnership (cannot be funded by USG funds)  Provision of services for a fee (related to LMG objectives) Solutions to partner challenges:  Gender sensitivity or gender empowerment courses for hotel chains, garment factories, tea plantations (large female workforce)  Assistance to the improvement of training curricula for academic institutions and other partners (MOHs, professional associations)  Mentoring programs for women networks  Community engagement programs for extractive industry partners  Partnership brokering, facilitation, and management (partnership units, secretariats)  Business development – developing concepts, proposals for non-USG funds to further LMG objectivesManagement Sciences for Health 21
  22. 22. Why is Cost Share Important to LMG? A contractually mandated deliverable – 20% of obligated LMG Core and Field Support funds An opportunity for MSH and partners to demonstrate commitment to and ensure sustainability of project investments An obligation that, if not met, will result in a reduction in the amount of USAID incremental funding in the following period or require MSH to refund the difference to USAID, if the award has expired or has been terminated.Management Sciences for Health 22
  23. 23. LMG Contacts for Cost Share Questions Cost share opportunities identification, brainstorming, development of cost share plans, tracking  Albena Godlove, Director, Global Advocacy and Partnerships, LMG AGodlove@msh.org tel.: 703 310 3469  Eva Ros, Senior Technical Advisor, Global Advocacy and Partnerships, LMG ERos@msh.org tel.: 703 310 3474 Cost share documentation review, approval, tracking, contractual and compliance questions  Peter Mahoney, Senior Contracts Officer, MSH PMahoney@msh.org tel.: 617 250 9332Management Sciences for Health 23
  24. 24. Bottom line Leveraging the LMG Project Cost Share is a Team Effort What is on your mind?Management Sciences for Health 24
  25. 25. Stronger health systems. Greater health impact. Saving lives and improving the health of the world’s poorest and most vulnerable people by closing the gap between knowledge and action in public health.Management Sciences for Health 25
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