Item (a)(1) of OMB Circular A-110, Section 23, Cost Sharing or Matching, states:

(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 meet all of the following criteria.
(1) Are verifiable from the recipient's records.

Does this mean that the recipient should provide verifiable records to the federal agency in order to receive credit for a match?

By carol elliott on Tuesday, April 10, 2001 - 11:41 am:

The standard form 270 which our grantees use when requesting an advance or reimbursement includes a line for the grantee to document the cost share. My office does not require that verifiable records be provided with the SF 270 to support either expenses or cost share.

On the other hand, the grantees financial management system must capable of tracking and allocating expenses as well as any cost share. In the event of an audit, cost share and/or matching documentation is reviewed. The grantee is responsible for being able to support the cost share.

In my experience this can be a significant problem area during an audit when the cost share consists of in-kind contributions.