Length and Time Phasing of Assistance
(1) Formula Grants: Formula grant awards are made for a specific grant period in the fiscal year; amounts unobligated by the State at the end of a grant period are not available for obligation after the expiration of the established grant period. (2) Direct Grants: Financial assistance made available under the competitive grant component will normally be for a 1-year period and each project will have an expiration date. However, at the discretion of the Director, Office of Community Services, Administration for Children and Families, shorter or longer project periods, i.e., up to 17 months, may be established.
Formula and Matching Requirements
(1) Formula Grants: Section 681 of the Community Services Block Grant (CSBG) Act, as amended (Public Law 97-35, as amended, 42 U.S.C. 9910) prescribes that, from 60 percent of the amount appropriated shall be awarded to eligible agencies for Statewide programs in each State in an amount which bears the same ratio to 60 percent of such appropriations as the low-income and unemployed populations of such State bear to the low-income and unemployed population of all the States. There is no matching requirement. (2) Direct Grants: Section 681 of the CSBG Act, as amended, provides that 40 percent of the amount appropriated be awarded as direct grants to eligible agencies for local and statewide programs. These awards are made on a competitive basis. There is no matching requirement.
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.