7.9.14 DOL Leveraged Resources Guidelines
Leveraged resources are all non-grant funded resources that have been used by the grantee to support grant activities and outcomes.
The two types of leverage resources are cash and in-kind. Cash leverage reflects additional funds or services provided and paid by the grantee from non-grant funds. The value is the actual costs incurred as reflected in the grantee’s accounting system and other official records. Examples include direct costs that could have been charged to the grant but were not, such as salaries, supplies, outreach, and equipment used for the grant that was purchased with institutional funds, donated or purchased with other federal funds.
Unrecovered indirect costs or administrative costs that exceed the administrative cost limitation and are not reimbursed by the grant can be considered leverage.
Cash and in-kind gifts accepted through a college foundation will follow the requirements of the foundation.
Valuation of In-kind Leverage
Services – The value of the service of an individual who is providing service in his/her profession will be based on their regular rate of pay plus benefits. If the service is not in their usual profession, or the hourly rate is not provided, the valuation will be based on the ordinary rate of pay for similar work in the local labor market.
Supplies – The value of donated supplies shall not exceed the fair market value at the time of donation.
Use of space/facilities – The value of the use of space in a building owned by a third party shall not exceed the fair rental value of privately owned comparable space in the same locality.
Use of equipment – the value of the use of equipment owned and maintained by a third party shall not exceed the fair market rental rates for like equipment.
Scholarships awarded to participants will be counted when the scholarships are awarded to the student and applied to their tuition/fees.
Consortium members must provide supporting documentation when reporting leveraged resources. Documentation for contributions from third parties must include verification that the contribution was received and how the value of the contribution was determined. All supporting documentation, cost valuations and determinations must be maintained by the consortium member and be available for monitoring.
Date of procedure creation: 02/10/2015
Author (s): Rebekah Kent, Director Strategic Grant Initiatives and
Jillian Cyann, Accounting Officer, AME & RITA Grant
Date of Implementation: 02/24/2015