Allowable Matching (Cost Sharing)

Any project support can be in the form of cash or in-kind contributions, which generally consists of the value of services, supplies, and non-expendable personal property. This may also include program income, as long as this is specifically approved in advance by TxDOT (See Chapter 5, Section 6).
The subgrantee can consider direct cash applications as well as in-kind contributions. In-kind contributions can represent the value of other resources directly applied to the project activities, such as equipment and personnel costs. Credit for such resources is limited to those costs normally allowable for funding under current NHTSA policy. In-kind contributions necessarily become part of the detailed project budget in order to be accountable as matching resources.
Concerning allowable matching (cost sharing), the Uniform Guidance, §200.306, “Cost Sharing or Matching,” states that matching (cost sharing) requirements may be satisfied by the following:
  • “Allowable costs incurred by the subgrantee...under the...agreement...” (For example, the purchase of land or office furniture is not allowable; therefore, the purchase price of these items cannot be considered as a matching cost.)
  • “The value of third-party in-kind contributions applicable to the period to which the cost sharing or matching applies.”
  • Volunteer services furnished by third-party professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for third-party volunteer services must be consistent with those paid for similar work by the non-federal entity. In those instances in which the required skills are not found in the non-federal entity, rates must be consistent with those paid for similar work in the labor market in which the non-federal entity competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, necessary, allocable, and otherwise allowable may be included in the valuation.
Criteria for determining the acceptability of cash and in-kind contributions is established in 2 C.F.R. §200.306 of the Uniform Guidance. These criteria require the in-kind match to be:
  • Verifiable from the subgrantee’s records (See “Documenting Matching Costs” below).
  • Not included as contributions for any other federally-assisted program.
  • Necessary and reasonable for proper and efficient accomplishment of program objectives.
  • Charges that would be allowable under the applicable cost circulars.
  • Charges that are not paid by the federal government under another award, except where authorized by federal statute to be used for cost sharing or matching.
  • Charges that are provided for in the approved budget when required by the federal agency.