Assistance considerations...
Length and Time Phasing of Assistance
The unit of local government must obligate and expend block grants funds and any interest deriving therefrom within 24 months of the date of the initial payment. The funds are awarded as a lump sum. Any funds and interest that remain unobligated at the end of the 24 months from the date of initial payment shall be returned to BJA within 27 months of the initial payment.
Formula and Matching Requirements
The Federal funds provided under a grant for the Block Grants Program may not exceed 90 percent of the total costs of a program. The applicant's matching share must be in the form of cash. The amount of the required match can be computed by calculating one-ninth of the Federal portion of program costs. For example, if $90,000 of Federal funds is requested, this amount multiplied by 1/9th requires a local entity to match it with $10,000. The Federal amount ($90,000) plus the match ($10,000) should be combined to equal the total program proposal cost. The matching requirement is only applicable to the amount of the Federal award, not any interest or income derived therefrom. The applicant must certify as part of its application that the funds required to pay the nonfederal portion of the cost of each program will be made available for expenditure during the grant period. This certification is made by including the total match amount on the application form and signing the certified assurances document. Regardless of the source of match, it must be expended during the period of the Block Grant. All grantees must maintain records that clearly show the source, the amount, and the timing of all matching contributions. There is no waiver provision for the match. Allowable sources of the match include funds from the following: (1) States and local units of government; (2) Housing and Community Development Act of 1974; (3) Appalachian Regional Development Act; (4) Equitable Sharing Program (Federal asset forfeiture distributions to State and local officials); and (5) private funds.
Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.