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Cooperative Extension Service

Published on AidPage by IDILOGIC on Jun 24, 2005

Assistance considerations...

Length and Time Phasing of Assistance

Formula Grants are a continuing program each year. Funds are made available through the electronic transfer system. States are permitted to carry over unexpended balances to the next year.

Formula and Matching Requirements

Smith-Lever Act Section 3(b) and 3(c), and Section 1444 of the Food and Agriculture Act of 1977 formula funds are distributed to States based on farm and rural population. Funds authorized under Section 3(d) of the Smith-Lever Act for the Expanded Food and Nutrition Education Program are allocated based on population below the poverty level. The source for both of these distributions is the last preceding decennial census at the time an additional amount is first appropriated. Formula funds provided under the Smith-Lever Act Section 3(b) and (c) and under Section 1444 of the Food and Agriculture Act of 1977 are matched as required in Public Law 105-185. The statistical factor used for eligibility does not apply to this program.

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.