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CHAPTER 2-220

MATCHING AND COST SHARING

2-220-00 What does this chapter do?

2-220-10 Where do these policies come from?

2-220-20 What is match?

2-220-30 What costs may you use to meet match requirements?

2-220-40 May you use OSMRE funds as match for other Federal assistance agreements?

2-220-50 May you use costs paid from program income to meet match requirements?

2-220-60 What in-kind contributions may be used as match?

2-220-70 How should you value contributions of volunteer or staff services, supplies, and

loaned or donated land, buildings and equipment to meet match requirements?

2-220-80 Can you claim a contribution as a direct cost if you charge similar costs to

indirect costs? 

2-220-90 What policies apply to indirect costs used as match?

2-220-00 What does this chapter do?

This chapter explains match requirements in assistance agreements awarded by us, the Office of 

Surface Mining Reclamation and Enforcement (OSMRE), and how you, the recipient, can meet 

them.

2-220-10 Where do these policies come from?

A. Policy Federal share and recipient share costs are found in from the Uniform

Administrative Requirements, Cost Principles, and Audit Requirements for Federal

Awards, at 2 CFR 200, Subpart D.

B. The level of match required for a specific assistance program is set by legislation or

agency regulations or directives. For example, the Surface Mining Control and

Reclamation Act (SMCRA) require states to provide 50% match for regulatory program

administration and enforcement (A&E) grants for work on non-Federal lands.

2-220-20 What is match?

Some assistance programs require costs to be shared between Federal funds and non-Federal 

funds. Match is the level of non-Federal support which is required for your program or in your 

assistance agreement.

2-220-30 What costs may you use to meet match requirements?

A. You may satisfy matching and cost sharing requirements by either or both of the

following:
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1. Pay for allowable costs of your program with funds from your organization, nonFederal grants, or other cash donations.

2. Use in-kind contributions from third parties for your program.

B. You may not meet a match requirement with costs paid by another Federal assistance 

agreement unless using those particular funds as match is specifically authorized by law.

C. You may not consider a cost or contribution as match for your OSMRE agreement if it 

has been used to match another Federal assistance agreement or any other award of 

Federal funds. You may prorate a cost or contribution between two or more Federal 

agreements as long as no costs are claimed more than once.

D. Your records must document the costs and contributions you report as match. The records 

must show how you calculated the value placed on in-kind contributions.

2-220-40 May you use OSMRE funds as match for other Federal assistance agreements?

A. You cannot use costs paid by OSMRE under any assistance agreement or contract to 

meet match requirements of other Federal agreements unless that use is specifically 

authorized by law.

B. Appropriations laws for some fiscal years allow you to use Abandoned Mine Land 

(AML) program funds as non-Federal match for projects funded by other Federal 

agencies for environmental restoration related to treatment or abatement of acid mine 

drainage from abandoned mines. The projects must be consistent with the purposes and 

priorities of SMCRA. For guidance on the status of specific AML funds you wish to 

use as match for other Federal assistance, contact the OSMRE office which awarded your 

grant. 

C. You may use AML set-aside funds and interest earned on those funds as match for other 

Federal assistance programs. The purposes of the other program must be consistent with 

the purpose of the set-aside account.

2-220-50 May you use costs paid from program income to meet match requirements?

A. You may not use costs paid with program income as match unless we have approved that 

use for the program income you earn.

B. You may use costs paid with program income generated from a regulatory A&E grant to 

meet the match requirement of the grant. 

2-220-60 What in-kind contributions may be used as match?
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A. You may use goods and services donated to your program to meet match requirements 

only if the contribution is necessary for your program activities and the cost would be 

allowable if you paid it in cash.

B. You may use a third party in-kind contribution to a fixed-price contract as match only if it 

results in a cost savings for you, or an increase in the services or property provided under 

the contract at no additional cost to you.

2-220-70 How should you value contributions of volunteer or staff services, supplies, and 

loaned or donated land, buildings and equipment to meet match requirements?

A. Volunteer services. You should value services provided to your program by volunteers at 

rates consistent with what you pay employees doing similar work. If you do not have 

employees doing similar work, use what other employers in your area pay for similar 

work. You may include a reasonable amount of fringe benefits. Your records must 

support and document volunteer services, to the extent feasible, by the same methods that 

you use for employees performing similar work. 

B. Employees of other organizations. When another organization contributes the services of 

an employee to do their normal type of work at no cost, you should value these services 

at the employee's regular rate of pay (excluding the employer's fringe benefits and 

overhead costs). If the employee is not doing their normal work, you should value their 

services under the volunteer services rule above. 

C. Donated supplies. Value donated supplies at the fair market value of the supplies at the 

time you receive them. 

D. Loaned equipment or space. If a third party donates the use of equipment or building 

space they own, you should value the contribution at the fair market rental value of the 

equipment or space.

E. Donated equipment, buildings and land. If a third party donates equipment, building or 

land, and gives you title to the property, the amount you can claim as match depends on 

whether the grant is for capital or operating expenditures.

1. If the purpose of the grant is to acquire equipment, buildings or land, you may 

claim the total market value of the property at the time of donation. However, if 

any part of the donated property was acquired with Federal funds, you may use 

only the non-Federal share of the property as match.

2. If the purpose of the grant is to support activities that require the use of 

equipment, buildings or land, one of the following rules apply:
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a. You may claim depreciation or a use allowance based on the fair market 

value of the donated property. You must determine and allocate the 

depreciation or use allowance following OMB cost principles as if you 

had purchased the property at the fair market value. 

b. You may request our approval to claim the fair rental rate of the donated 

land or the full market value of the equipment or buildings at the time it is 

donated as match. We will approve your request only if we would have 

approved your purchase of the equipment or building or actual rental of 

the land as an allowable direct cost. If any part of the donated property 

was acquired with Federal funds, you may use only the non-Federal share 

of the property as match.

3. In some cases you must determine the fair market value of land or a building, or 

the fair rental rate of land or space in a building. We may require you to have the 

market value or rate set by an independent appraiser and to have an authorized 

official of your organization certify the value or rate before we accept these costs 

as match.

2-220-80 Can you claim a contribution as a direct cost if you charge similar costs to 

indirect costs? 

You must classify a contribution as a direct or indirect cost in the same way you classify similar 

costs which you charge to Federal funds. So if you treat items such as rent, utilities and 

accounting as indirect costs when you develop your indirect cost rate, then you may not claim 

contributions in these categories as direct costs. Similarly, if you already own facilities and 

equipment, you may not count their use as a direct cost contribution to the program if 

depreciation or use charges for the property are included in the indirect cost rate.

2-220-90 What policies apply to indirect costs used as match?

A. You may accept in-kind contributions of goods and services that would have been 

indirect costs if you had to pay for them. You may use indirect cost contributions as 

match only if your approved indirect cost rate includes the value of the contributions.

B. If you have multiple indirect cost rates, the requirement for consistent classification of 

costs applies separately to the activities covered by each rate. For example, if you have 

approved rates for "onsite" and "offsite" activities, you may charge the costs of renting 

offsite facilities to offsite activities as a direct cost even if you treat facility costs as 

indirect costs for onsite activities.

C. If we negotiate your indirect cost rate, we will only negotiate "offsite" or other special 

indirect cost rates if they are justified under the applicable cost principles. We will not 

establish special indirect cost rates just for cost sharing or matching arrangements.