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PROGRAM INCOME IN KIND ASSISTANCE

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					PROGRAM INCOME / IN-KIND
  ASSISTANCE / IN-KIND
     CONTRIBUTION
PROGRAM INCOME REFERENCES


• NGR 5-1/ANGI 63-101 Chapter 7.
• 32 CFR, SECTION 33.25.
• DoDGAR 3210.6-R, SECTION 33.25.
   FUNDS THAT ARE NOT PROGRAM
             INCOME


• Rental of State owned and Federally
  supported armories.
• Reimbursements made to the USPFO by
  another Federal agency for the use of a
  NGB supported facility.
• Billeting Fund.
 RENTAL OF STATE OWNED,
  FEDERALLY SUPPORTED
       ARMORIES
TITLE 10 U.S.C. 1823(C) Permits the
States to rent out Armories if the State
   uses the income to maintain the
               Armories.
   REIMBURSEMENT BY
ANOTHER FEDERAL AGENCY
• Funds submitted to the USPFO.
• USPFO processes a reimbursement
  for actual costs incurred.
• Cooperative Agreement modified to
  increase Federal contribution.
BILLETING FUND

    NGR 210-50
    BILLETING FUND
• ARNG Billeting Operations
• Required for Transient Billeting
• Not considered Program Income
• State Non-Appropriated Fund
• Not Fiscal Year Dependent
• Fees Cannot Exceed 50% of Local Per
  Diem Rate
• Billeting Fees approved by USPFO
    BILLETING FUND (Continued)
• Covers cost of daily operations:
   Maid Service
   Front Desk Personnel
   Consumable Supplies
   Amenities
• May be used for minor repairs
• USPFO must audit fund annually
• Should have a capital expenditure plan
 BILLETING SURCHARGE FEES

• Surcharge is an additional fee charged for
  unofficial users
• TAG has latitude to determine unofficial
  users
• Surcharge fee is used to offset utility cost
• Surcharge fees are submitted to USPFO
  and credited O&M account
• Surcharge fees are fiscal year dependent
PROGRAM INCOME
 GRANTEES (NGB) ARE
ENCOURAGED TO EARN
  PROGRAM INCOME
          PROGRAM INCOME
             DEFINED

Program income is defined in NGR 5-1/ANGI 63-
101, Chapter 7 as the gross income, received by
 a recipient from fees for services performed and
  from the use, rental, or sale of real or personal
property, the operation and maintenance of which
          is supported under an NGB CA.
    PROGRAM INCOME CONCERNS

 *Equipment acquired with NGB CA funds
shall NOT be used to provide services for a
     fee to compete unfairly with private
companies that provide equivalent services.
 *Likewise we should not rent facilities that
 would compete unfairly against the private
                  sector.
            USER’S FEE
• NATIONAL GUARD USERS: Recover Cost for
  Additional Services

• FEDERAL AGENCIES: Recover Identifiable
  Incremental Costs

• NON-FEDERAL USERS: Recover an Amount
  Equal to its Overhead Cost
ACCOUNTING FOR PROGRAM INCOME

• Program income is accounted for and used as
  an addition to the State’s contribution to a CA.

• If program income is received on a cost-shared
  CA, the amount of program income added to the
  funds committed to the CA is a percentage of
  gross program income equal to the percentage
  of the Federal contribution stated in the CA.
    ACCOUNTING FOR PROGRAM
       INCOME (Continued)
• The State must expend program income
  funds following the rules applicable to the type
  of funds from which the program income was
  generated.
• Program income is used to offset future
  requests for reimbursement.
 ACCOUNTING FOR PROGRAM
    INCOME (Continued)

• Cooperative Agreement modified to
  increase estimated cost.
• Program income is reported in DAADS as
  part of the State contribution.
  FUNDING – PROGRAM INCOME
FUNDING                       “CASH”
                         Quarterly Authority        Annual Budget Authority
                              Allotment             Annual Funding Program
                       Maximum Funding Limitation        Estimated Cost

Federal Share (100%)   $_______________________     $_____100,000__________________
Federal Share (75%)    $_______________________     $_______________________
Federal Share (50%)    $_______________________     $_______________________

      Federal Total    $_______________________     $______________________


State Share (50%)      $________________________    $______50,000_________________
State Share (25%)      $________________________    $_______________________

Program Income                                          1,000.00
                                                    $_______________________

State Total            $________________________    $_______________________

Grand Total            $________________________    $_______________________

In-Kind Assistance.
PROGRAM INCOME
   EXAMPLES
                  EXAMPLE #1

The State Resource Manager received $1,000 in program
income from the State Human Resources Division for using
the Training Site auditorium. (100% Federal)
State Resource Manager:
1. Receives the check from the Training Site
   Administrator.
2. Reports the $1,000 program income to the Grants
   Officer.
3. On the next request for reimbursement, reduces the
   amount requested by the amount of program income.
           EXAMPLE #1 (Continued)


The Grants Officer:
1. Completes a modification to the cooperative
   agreement.
2. Reports program income in DAADS as an increase to
   the State contribution.
 If the original contribution by the State was $0, add the
$1,000 program income contribution for a total State
contribution of $1,000.
                   EXAMPLE #2
The State Resource Manager received $5,000 in program
income from the state highway patrol for using an
agreement supported pistol range. (75% Federal/25%
State)
State Resource Manager:
1. Reports the $3,750 program income to the Grants
   Officer. (5,000 X 75% Federal share)
2. On the next request for reimbursement, reduces the
   amount requested by the amount of program income.
3. The State Resource Manager at their discretion will use the
   $1,250 that is not reported as program income.
          EXAMPLE #2 (Continued)


The Grants Officer:
1. Completes a modification to the cooperative agreement.
2. Reports program income in DAADS as an increase to
   the State contribution.
If the original contribution by the State was $100,000 add
the $3,750 program income contribution for a total State
contribution of $103,750.
 MANAGEMENT CONTROLS
• Determine which programs in your state may create
  Program Income.
• Validate whether program income is being generated
• Is program income submitted to State Comptroller?
• Has the State Comptroller correctly applied program
  income (proper share & proper appendix) by reducing
  requests for reimbursements?
• Validate that CA has been modified to increase the
  State Share by the applied Program Income and
  reported in DAADs.
  IN-KIND ASSISTANCE
      REFERENCE

NGR 5-1/ANGI 63-101 Chapter 6
GOVERNMENT FURNISHED EQUIPMENT


• Government furnished equipment is NOT
  In-Kind assistance.
• Reference NGR 5-1/ANGI63-101 Chapter
  6-2c
The transfer of property or services (valued
  at the time of contribution at fair market
value), in lieu of funds by NGB, to satisfy (in
whole or in part) its obligation of assistance
              support to the State.
        IN-KIND ASSISTANCE
            AUTHORIZED
• Supplies.
• Services (exception is Federal contracts for the
  performance of fire fighting or security guard
  functions).
• Maintenance or repair.
 TYPES OF IN-KIND ASSISTANCE


• Contracting through the USPFO.
• Contracting through other Federal
  channels.
        IN-KIND ASSISTANCE

• In-Kind Assistance is on a case-by-case basis
  and considered the exception, not the rule.

• The value of the In-Kind Assistance must be
  accounted for in the Cooperative Agreement.

• The total monetary value of the In Kind
  Assistance is the amount used to determine a
  State’s share when a Cooperative Agreement is
  cost shared.
  PROCESSING IN-KIND ASSISTANCE




• USPFO Approves/Disapproves
• Modify Cooperative Agreement (if approved)
• Federal Procurement
              FUNDING – IN KIND ASSISTANCE
                                                  “CASH”
                                             Quarterly Authority                 Annual Budget Authority
                                                  Allotment                      Annual Funding Program
                                          Maximum Funding Limitation                 Estimated Cost

Federal Share (100%)                      $______100,000___________              $_______________________
Federal Share (75%)                       $_______________________               $_______________________
Federal Share (50%)                       $_______________________               $_______________________

      Federal Total                       $_______________________               $______________________


State Share (50%)                         $________________________              $_______________________
State Share (25%)                         $________________________              $_______________________

Program Income                                                                   $_______________________

State Total                               $________________________              $_______________________

Grand Total                               $________________________              $_______________________

In-Kind Assistance
                                           1,000.00
                                          $____________________

“within the federal share indicated above, in-kind assistance thru federal procurement procedures of $1,000 is
being withheld and designated specifically.”
      PROCESSING IN-KIND
     ASSISTANCE (Continued)
• Accountability of cost shared CA.
• The USPFO notifies the State of the
  State’s cost share
   State credits the amount against the costs
     claimed for reimbursement under that agreement on
     the next voucher submitted.
    MANAGEMENT CONTROLS
               (Continued)



• Is In-Kind Assistance approved by the
  USPFO as an exception?
• Has the CA been modified converting
  cash contribution to IKA with no change
  in total value? Validate that any State
  Share is applied on future
  reimbursement.
CASE STUDY
           CASE STUDY                   MODULE # 7


The 133rd ARW (NG) Base Civil Engineer has notified NGB
ANG/CE that a requirement exists to purchase contract training
for maintenance state employees (FOMA) on a new fire
suppression system installed at the wing. The message further
stated that the training would be purchased using an Air Force
contract in the approximate amount of $4,000.00. The Wing is
to use existing funds contained within the FOMA (75-25), with
the understanding that they will be reimbursed at mid-year.


What steps are required to make this happen?

Are there any concerns that should be addressed relative to this
action?
    IN KIND
CONTRIBUTION BY
     STATE
   COST SHARE DEFINITION

  • Cost share occurs when the Federal
Government is not funding 100% of the
activity
  • Cost share is also known as
         > Matching share
         > Match
         > Matching funds
        COST SHARES


• Cost share is set by NGB or legislation

  > Appendices

  > NGR 5-1/ANGI 63-101
           OTHER COST SHARE
             REFERENCES:

• GAO Principles of Federal Appropriations Law-Vol II

• Department of Defense Grants & Agreements
Regulation (DoDGARS) 3210-6R

• NGB Cooperative Agreement and Support Agreement
Handbook (CASA)
RECIPIENT’S COST SHARE CAN BE:


       • HARD MATCH

       • SOFT MATCH
           HARD MATCH


• Hard Match is strictly cash contribution.

• The only hard match required in CA is
MILCON for Armories per 10 USC 18236.
The land has to be State owned and its
value cannot be part of the match.
          SOFT MATCH


     All other CA’s, unless specified by
 legislation, are soft match and the State
can contribute other than cash in the form
  of supplies or services (allowable costs
                    only).
 VALUE OF STATE IN-KIND CONTRIBUTION:



• Value assessed per DoDGARS 33.24

• Assessed value of contribution must be
valued at a “Fair & Reasonable” amount
that can be be verified by State’s records.
   EVALUATING STATE IN-KIND
CONTRIBUTION PER DODGARS 33.24:

 For donated services:
       (1) Volunteer Services-valued at rates consistent
with those ordinarily paid for similar work in State’s
organization or similar to labor market if State doesn’t
have this type of employee.
       (2) Other Organization’s Employees-valued the
employee’s regular rate of pay (for same type of work)
exclusive of Fringe Benefits and Overhead Costs.
 EVALUATING THIRD PARTY IN-KIND
CONTRIBUTION PER DODGARS 33.24:

For donated supplies & loaned equipment or space where title does
not pass to grantee or subgrantee:
         (1) Value of supplies will be market value at time of donation
         (2) Value of equipment or building space will be at fair rental
rate of that equipment or space.

For donated equipment, buildings, and land:
         If a 3d party passes title to grantee or subgrantee,
the treatment of the donated property depends on the purpose of the
grant. (See DoDGARS 33.24)

For donated real property for construction/acquisition-see
DoDGARS 33.24.
MODULE TEACHING POINTS


• HARD/SOFT MATCH

• Is Soft Match valued per
  DODGARS 3210.6R?
QUESTIONS

				
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