Whether you are in the second or third year of your YouthBuild grant, or are just beginning to implement program services under your 2016 award, meeting the match requirement necessitates a thorough understanding of the definition of match as well as clarity on allowable and unallowable costs.

The Funding Opportunity Announcement for YouthBuild grants each year calls for a match of 25% of your total grant award. Match is defined as non-federal resources used toward grant objectives that are new commitments. Thus, this 25% represents a portion of your project costs that are not covered by federal dollars and are not reallocation of previous commitments. All matching funds must be spent on allowable grant activities and in accordance with cost principles. 

In order for expenses to qualify as match, they must be:
  • verifiable in recipient records;
  • not used to support another federally-funded program (unless a specific exemption is stated);
  • necessary and reasonable;
  • allowable under the cost principles of Uniform Guidance;
  • not paid with federal funds;
  • not from previous commitments, such as a foundation grant from a previous year;
  • provided for within the approved budget; and
  • allowable under the grant.
There are two types of match expenditures: cash and in-kind contributions.  Cash match reflects additional funds or services provided and paid for by you, the grantee, and/or a subrecipient. These funds or services must be paid for from non-federal funds, and must be related to activities in support of grant outcomes.  Cash match includes unreimbursed allowable indirect costs.  Cash expenditures include funds and services provided and paid for by you, the grant recipient, and/or a subrecipient from non-federal funds, and third-party cash contributions to you, the grant recipient, that are spent on allowable activities. This might include personnel services not paid for with grant funds or other federal funds, or equipment used for the grant, but not paid for by grant dollars. Unclaimed or uncovered indirect costs can only be used as match with prior approval from the Department of Labor.
In-kind contributions are products, space or services provided by a third-party organization, and not paid for by you or a subrecipient. These contributions must support allowable grant activities and outcomes.  Examples of in-kind contributions are services provided by volunteers or paid non-grantee staff, equipment and supplies, or space provided by another organization at no cost to the grant.
You must determine the value of all match expenditures. This process is called “valuation.” The value of a cash match is the actual cost incurred as reflected in your accounting system. The valuation of in-kind match includes determining the fair market value of an expenditure at the time of donation, appraising donated space and buildings, and determining the value of personnel services. The value of personnel services will depend, in part, on the staff person’s role on the grant relative to their role in the overall organization.
Source documentation is required for all match expenditures. This might include methods and documentation used for valuation, accounting systems/books/records, and audit records. Be sure that you can produce source documentation before committing to a specific source for match. A lack of documentation will lead to disallowable match expenditures. Remember that you and any third-party organization generating match expenditures must retain source documentation.
With the implementation of Uniform Guidance, the Department of Labor has made revisions to the existing ETA-9130 form that grantees use to report financial expenditures on a quarterly basis.It is important that grantees are aware of the important revisions that have occurred to the ETA-9130 form under Uniform Guidance so that they are prepared to accurately track and report on all financial accounting.

For more information about match including types of match, valuation, and source documentation, please reference CFR §200.306 and §200.434 of Uniform Guidance, as well as TEGL 5-10: Match and Allowable Construction and Other Capital Asset Costs for the YouthBuild Program and TEGL 2-16: Revised ETA-9130 Financial Report, Instructions, and Additional Guidance.  Additionally, on January 17th, DOL will be providing an important webinar that every grantee should participate on, either live or via the archived webinar.  The 2pm EST webinar will cover in more detail what you need to know about match and how to avoid pitfalls that can require repayment of grant funds during closeout, as well as providing an overview of the new 9130 form.  You can register for the webinar here.