Cost-Sharing Regulations - 22 CFR 226

The Code of Federal Regulations (CFR), Title 22, Part 226, establishes uniform administrative requirements for grants and cooperative agreements awarded by USAID to U.S. institutions of higher education, hospitals, and other nonprofit organizations.

Among the administrative requirements, 22 CFR 226.23 establishes the requirements for cost sharing or matching when the USAID awards include cost-sharing or matching provisions. According to 22 CFR 226.23(a), all contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions are:

  • Verifiable from the recipient’s records;
  • Necessary and reasonable for proper and efficient accomplishment of project or program objectives;
  • Allowable under the applicable cost principles.

The Code of Federal Regulations (22 CFR 226.23(d)) states that 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 organizations. In 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.

Source: AUDIT REPORT NO. 1-519-11-007-P AUGUST 9, 2011

This information is derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using this information.

Tags: Grants Management

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