2020-JAII-04 Attachment D RD Grant Capital Budget and Invoice Template-Match.xlsx

Budget&Invoice_Template

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Research and Development Standard Budget and Invoice Template Invoiced Costs

Budget- Cost by Fiscal Year

** Project the costs from the budget template annually based upon the Participants anticipated timing of expending the grant funds. Availability of funds from MassTech is subject to authorization from the Commonwealth, and is not guaranteed at the levels requested.

Budget Breakdown: Annually

Budget Assumptions

Budget Guidelines

PARTICIPANT BUDGET/INVOICE GUIDELINES

These guidelines apply to MassTech R&D grants that require Participants to incur expenditures in line with approved budgets within their contracts. In developing these guidelines, MassTech has drawn heavily from the policies and practices applied by federal and other state agencies that also require adherence to grant budgets. Adherence to approved budgets ensures that MassTech is expending funds in a fiscally responsible manner and, managing to the legislation of the state appropriated funds.

Capital Grant Expenditure Categories:

• Capital Labor: Direct labor at actual cost to the Participant, based upon an hourly rate, or percent effort of an annual base salary.

• Capital Fringe: Benefits related to direct labor costs, can either be incurred as a direct expense or an allocated cost with an approved rate. Documentation of Participant approved rates should be submitted at the time of proposal.

• Capital Consultants/Subcontracts: contracted services to perform a specific task related to the project or, subcontracts granting funds for performance of a key aspect of the project.

• Capital Direct Materials: Materials and supplies needed in direct support of the project, in order to obtain the objectives as stated in the approved budget and contract.

• Other Capital Direct Costs: This includes categories such as travel and materials.

• Capital General & Administrative Expense/Overhead: An allocated cost that must be capital and based upon an approved rate. Indirect cost rates shall be assessed in accordance with your institutions rate agreement as it pertains to capital expenditures. Documentation of Participant approved rates should be submitted at the time of proposal.

Capital Expenditure Guidelines:

• Participant may only be reimbursed for capital cost incurred and expenditures must be properly recorded as capital, and verifiable in the Participant’s records.

• MassTech may allow up to a 5% annual increase in the direct labor rates set forth in the budget to account for actual cost of living increases over multiyear reimbursement periods. This variance must be explained in the supporting schedule when invoicing and is subject to approval by the Program Manager.

• MassTech may allow up to a 20% variance from the rates on services/consultants if estimates where used in creating the budget. This variance must be explained in the supporting schedule when invoicing and is subject to approval by the Program Manager.

• MassTech may allow up to a 10% variance from cost categories set forth in the approved budget and explained in the supporting schedule when invoicing.

• Any variance greater than the thresholds listed above, must be formally approved by the Program Manager prior to invoice submission and may require formal amendment to the contract.

• Participant must incur costs within the grant period. Pre-award spending is only allowed when incorporated through a provision in the grant agreement.

• Participant may not be reimbursed for grant expenditures by any other source.

• Direct replacement of personnel with similar roles and rates should be explained in the supporting schedule. Any newly added staff/roles meant to be in addition to personnel identified in the approved budget must be approved by the Program Manager prior to invoice submission.

Participant Documentation Requirements:

• To the extent the Participant can produce accounting-system generated reports, deemed acceptable by MassTech, to verify expenditure amounts consistent with the budget categories that tie to invoice amounts and categories, they should be submitted with all invoices. MassTech reserves the right to request additional supporting documentation at any time.

• To the extent the Participant can’t provide, or MassTech does not accept the form of accounting-system generated reports, the Participant must provide supporting documentation that could include, but is not limited to, vendor invoices, labor reports listing hours and rates by employee.

• Participant must submit with its invoice, the certification relating to the appropriateness of the reimbursable costs and amounts of match costs, as attached to the contract, with a signature by an individual with knowledge of the information to which the certification relates and who is authorized to certify on behalf of the organization.

Match Guidelines

PARTICIPANT MATCH GUIDELINES

These guidelines apply to MassTech grants that require Participant’s to secure and provide matching funds to cover the portion of the project expenses not to be reimbursed by MassTech. In developing this policy, MassTech has drawn heavily from the policies and practices applied by federal and other state agencies that require match under their programs.

Forms and Source of Match:

• Cash Contribution: Cash contributions specifically to cover a portion of the actual costs incurred of the grant-funded project.

• In-kind Contribution: In-Kind donations can be in the form of necessary services, volunteers, materials, and equipment if it’s directly related to the project objectives.

• Source: The cash and in-kind contributions can come from the Participant or from third parties, so long as it is not sourced by, or considered discretionary funds under the control of, a state agency as defined in Mass. Gen. Laws Ch. 6, § 39.

Match Fund Guidelines:

• Participant must include use of match funds in the approved budget, within the MassTech grant agreement.

• At project start, Participant must clearly document the direct relevance and benefit of the proposed match to the project. MassTech will review the source and nature of the match, and document approval internally.

• Participant must document match met within the invoice period, and to the extent possible it should be ratable with the expenditure of the MassTech grant funds .

• Participant must incur match expenditures and receive in-kind contributions within the grant period. Prior approval is required to allow match that falls outside that period.

• Participant must properly document the basis for determining the valuation for items such as volunteer services and donated property, if the matching funds include in-kind contributions.

• Participant may not apply approved match amounts as match on any other award.

Participant Documentation Requirements:

•Participant should provoide a narrative explanation of the source of match as well as the relevance of the match to the funded project, if this is not included as part of the proposal it shoudl be done wiht the first invoice and then any necessary updates to that narrative should be provided during the grant period to the extent there are changes or addtional match items.

•Participant should record amounts considered as match in the Participant’s books and this must be verifiable from the Participant’s records.

• Invoices shall provide reasonable documentation including system-generated detailed activity reports showing income and expenses to provide evidence of costs incurred for the required match met (just as it is for reimbursable costs). Additional documentation to support costs may be requested by MassTech from time to time and may include vendor invoices and effort reports listing percent effort and annual base salary by employee/volunteer. • When In-Kind contributions are booked on the Participants accounting records, this should be documented using a detailed system-generated report. To the extent it is not booked, we will need a donation letter from the donor stating its value and intent to support the project. For any in-kind contributions not recorded on the Participants books, the basis for determining the valuation must be documented within the donation letter.

• Participant must submit with its invoice, the certification relating to the appropriateness of the matching funds, as attached to the contract, with a signature by an individual with knowledge of the information to which the certification relates and who is authorized to certify on behalf of the organization.

Invoice Form_Match Recorded

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Standard Budget and Invoice Template Match Costs

Invoice Supporting Schedule Supporting Schedule -- Standard Invoicing Form