Thread: Rebates

  1. #1
    MembersZone Subscriber

    Join Date
    Oct 2005
    Location
    Golden City 1 hour south of fort smith
    Posts
    545

    Default Rebates

    Have a question, a fire department near me is wondering how to handle rebates on equipment bought with AFG grant funds. The equipment their buying has a rebate of you purchase 10 of the same item. ( grant funds are to purchase 20) The rebate would only be $100 on a $20,000 order. They wondering how do they report it, Do they have to report it? Can they use it to purchase more equipment in line with the grant? Basically how do they handle the rebates? Where if any where in the PG handles this problem?

  2. #2
    Forum Member

    Join Date
    Feb 2002
    Location
    Cypress, TX
    Posts
    1,726

    Default

    Rebates are federal money, so basically it's like the rebate wasn't even spent. So if they got $10 off of each for purchasing 10 of something, then the price was actually $10 less for the purpose of reporting. That means if they spent less than the total grant amount, they have to recalculated the matching. Using your numbers if the total grant was 10 sets of gear at $2000 each for the $20,000:

    Awarded match at 5% - $19,000
    Local Match - $1,000

    Rebate: $100 total, each set of gear $1990 instead of $2000
    Total bill: $19,900
    Federal share: $18,905
    Local Match: $995

    If they took all $19000 of the federal share and did nothing else they'd owe $95 at closeout. If they bought another helmet for $200 then they're fine under the excess fund rule because that would look like:

    Total: $20,100 ($19,900 for gear + $200 for extra helmet)
    Fed Share: $19,000 (94.5%)
    Local Match: $1,100 (5.5%)

    The federal share has to be 95% or less of the total project. So as long as anyone spends more than awarded you meet that, being cognizant of the excess fund rule which is now $10,000 instead of $5,000 in case anyone missed that announcement. Anything over that amount requires an amendment to be approved.
    Brian P. Vickers
    CEO - Vickers Consulting Services, Inc
    FH.com/Firehouse Mag Contributor
    www.helpmewithgrants.com
    www.facebook.com/vcsinc

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Log in

Click here to log in or register