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Cost share

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  • Cost share

    Hi all. Can someone please explain how the cost share works? I think I'm having a senior moment or a brain fart!

    Let's use these numbers as an example. I used FEMAs Cost Share Calculator to come up with these numbers
    Total Project Cost = $10,000
    Cost Share = 5%
    Federal Assistance = $9,523.81
    Local Cost Share = $476.91

    Does this mean then when awarded the grant I should try to keep my spending as close as possible to $9523?



    I looked through the NOFO for guidance and was unclear. I also looked in older posts going back to 2015 and didn't find an answer to my question; maybe someone here can help. As always, thanks for your input!

  • #2
    Perhaps one of the experts will answer, but my understanding is your target would be $10,000 and AFG would give you $9523 and you would provide $476. If your project came in at $9523, then AFG would only give you 95% of that amount. So You would owe 95% of any cost up to $10,000. If you go over the approved $10,000...say actual cost was 10,500. AFG will still only give you 9523 (95%) of the $10,000 you said it would cost and they approved.
    BB

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    • #3
      You are also required to provide your match associated with the total costs, regardless if you are under budget.

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      • #4
        Thank you for the replies folks. But how does FEMA collect the cost share? Do they send us a bill later on? Do they reduce it or take it out of a pay request that was submitted? Does it get automatically deducted from our bank account? Thanks again for your help.

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        • #5
          Thanks again for your help.

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          • #6
            Originally posted by Skojo View Post
            Thank you for the replies folks. But how does FEMA collect the cost share? Do they send us a bill later on? Do they reduce it or take it out of a pay request that was submitted? Does it get automatically deducted from our bank account? Thanks again for your help.
            FEMA doesn't collect your cost share. You purchase the item(s) and submit a pay request to FEMA for their approved % of the total cost - if the project came in under budget, you reduce the awarded federal amount accordingly and only request that amount, and if the project came in over budget, you request the awarded federal amount and you pay the overage. You should keep documentation in your files showing that you paid your required local share. Hope that helps!

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