[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR32.23]



[Page 156-158]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  32.23  Cost sharing or matching.



    (a) All contributions, including cash and third party in-kind, shall 

be accepted as part of the recipient's cost



[[Page 157]]



sharing or matching when such contributions meet all of the following 

criteria:

    (1) Are verifiable from the recipient's records.

    (2) Are not included as contributions for any other federally-

assisted project or program.

    (3) Are necessary and reasonable for proper and efficient 

accomplishment of project or program objectives.

    (4) Are allowable under the applicable cost principles.

    (5) Are not paid by the Federal Government under another award, 

except where authorized by Federal statute to be used for cost sharing 

or matching.

    (6) Are provided for in the approved budget when required by the DoD 

Component.

    (7) Conform to other provisions of this part, as applicable.

    (b) Unrecovered indirect costs (see definition in Sec.  32.2) may be 

included as part of cost sharing or matching.

    (c) Values for recipient contributions of services and property 

shall be established in accordance with the applicable cost principles. 

If a DoD Component authorizes recipients to donate buildings or land for 

construction/facilities acquisition projects or long-term use, the value 

of the donated property for cost sharing or matching shall be the lesser 

of:

    (1) The certified value of the remaining life of the property 

recorded in the recipient's accounting records at the time of donation; 

or

    (2) The current fair market value. However, when there is sufficient 

justification, the DoD Component may approve the use of the current fair 

market value of the donated property, even if it exceeds the certified 

value at the time of donation to the project. The DoD Component may 

accept the use of any reasonable basis for determining the fair market 

value of the property.

    (d) Volunteer services furnished by 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 volunteer 

services shall be consistent with those paid for similar work in the 

recipient's organization. In those instances in which the required 

skills are not found in the recipient organization, rates shall be 

consistent with those paid for similar work in the labor market in which 

the recipient competes for the kind of services involved. In either 

case, paid fringe benefits that are reasonable, allowable, and allocable 

may be included in the valuation.

    (e) When an employer other than the recipient furnishes the services 

of an employee, these services shall be valued at the employee's regular 

rate of pay (plus an amount of fringe benefits that are reasonable, 

allowable, and allocable, but exclusive of overhead costs), provided 

these services are in the same skill for which the employee is normally 

paid.

    (f) Donated supplies may include such items as office supplies, 

laboratory supplies or workshop and classroom supplies. Value assessed 

to donated supplies included in the cost sharing or matching share shall 

be reasonable and shall not exceed the fair market value of the property 

at the time of the donation.

    (g) The method used for determining cost sharing or matching for 

donated equipment, buildings and land for which title passes to the 

recipient may differ according to the purpose of the award, if the 

purpose of the award is to:

    (1) Assist the recipient in the acquisition of equipment, buildings 

or land, the total value of the donated property may be claimed as cost 

sharing or matching; or

    (2) Support activities that require the use of equipment, buildings 

or land, normally only depreciation or use charges for equipment and 

buildings may be made. However, the full value of equipment or other 

capital assets and fair rental charges for land may be allowed, provided 

that the DoD Component has approved the charges.

    (h) The value of donated property shall be determined in accordance 

with the usual accounting policies of the recipient, with the following 

qualifications.

    (1) The value of donated land and buildings shall not exceed its 

fair market value at the time of donation to the recipient as 

established by an independent appraiser (e.g., certified real



[[Page 158]]



property appraiser or General Services Administration representative) 

and certified by a responsible official of the recipient.

    (2) The value of donated equipment shall not exceed the fair market 

value of equipment of the same age and condition at the time of 

donation.

    (3) The value of donated space shall not exceed the fair rental 

value of comparable space as established by an independent appraisal of 

comparable space and facilities in a privately-owned building in the 

same locality.

    (4) The value of loaned equipment shall not exceed its fair rental 

value.

    (i) The following requirements pertain to the recipient's supporting 

records for in-kind contributions from third parties:

    (1) Volunteer services shall be documented and, to the extent 

feasible, supported by the same methods used by the recipient for its 

own employees.

    (2) The basis for determining the valuation for personal service and 

property shall be documented.