U.S. Department of Justice, Office of Justice Programs

Financial Guide 2006 - Part III - Chapter 3: Matching or Cost Sharing

Highlights of Chapter

  • Match Requirements
  • Types of Match
    • Cash Match
    • In-kind Match
  • Source and Type of Funds
  • Timing of Matching Contributions
  • Records for Match
  • Waiver of Match

Match Requirements

Match for the block/formula award program is to be provided for on a project-by-project basis, unless otherwise stated in the program guidelines. Any deviation from the program guidelines must receive the prior written approval of the awarding agency. Funds provided for a match must be used to support a federally funded project and must be in addition to, and therefore supplement, funds that would otherwise be made available for the stated program purpose. In the case of Byrne Formula Grants, the program area would be law enforcement. Match is restricted to the same use of funds as allowed for the Federal funds.

Types of Match

Cash Match (hard) includes cash spent for project-related costs. Allowable cash match must include those costs which are allowable with Federal funds with the exception of the acquisition of land, when applicable.

In-kind Match (soft) includes, but is not limited to, the valuation of in-kind services. "In-kind" is the value of something received or provided that does not have a cost associated with it. For example, if in-kind match is permitted by law (other than cash payments), then the value of donated services could be used to comply with the match requirement. Also, third party in-kind contributions may count toward satisfying match requirements provided the grantee receiving the contributions expend them as allowable costs (see 28 CFR Part 66.24, Grants Management Common Rule for State and Local Units of Governments).

Source And Type of Funds

Cash match (hard) may be applied from the following sources:

  1. Funds from States and local units of government that have a binding commitment of matching funds for programs or projects.
  2. Funds from the following:
    1. Housing and Community Development Act of 1974, 42 U.S.C 5301, et seq. (subject to the applicable policies and restrictions of the U.S. Department of Housing and Urban Development).
    2. Appalachian Regional Development Act of 1965, 40 U.S.C. 214.
  3. Equitable Sharing Program, 21 U.S.C §881(e) (current guidelines developed by the DOJ Asset Forfeiture office apply). Forfeited assets used as match from the Equitable Sharing Program would be adjudicated by a Federal court.
  4. Funds contributed from private sources.
  5. Program income and the related interest earned on that program income generated from projects, provided they are identified and approved prior to making an award.
  6. Program income funds earned from seized assets and forfeitures (adjudicated by a State court, as State law permits).
  7. Funds appropriated by Congress for the activities of any agency of a tribal government or the Bureau of Indian Affairs performing law enforcement functions on tribal lands.
  8. Sources otherwise authorized by law.

Timing of Matching Contributions

Matching contributions need not be applied at the exact time or in proportion to the obligation of the Federal funds. However, the full matching share must be obligated by the end of the period for which the Federal funds have been made available for obligation under an approved program or project. Time-phased matching may be required by the awarding agency on awards to nongovernmental recipients.

Note: The most common error found during the final financial reconciliation of a grant at closeout is the failure to report match. The full matching share provided must be reported on the Final Status Report submitted at the end of the grant period. If the matching share is not reported, the OC will assume that the grantee made no matching contribution, and will initiate collection of a cash match from the grantee.

Records For Match

Recipients and their subrecipients must maintain records which clearly show the source, the amount, and the timing of all matching contributions. In addition, if a program or project has included within its approved budget contributions which exceed the required matching portion, the recipient must maintain records of them in the same manner as it does for the awarding agency funds and required matching shares. For all block/formula funds, the State has primary responsibility for subrecipient compliance with the requirements. For all discretionary funds, the recipient and the subrecipient or contractual recipient have shared responsibility for ensuring compliance with the requirements regarding matching shares.

Waiver of Match

  • 42 U.S.C. §3754(a) of the Omnibus Crime Control Act provides that, in the case of funds distributed to an Indian tribe which performs law enforcement functions (as determined by the Secretary of the Interior) for any program or project described in 42 U.S.C. §3752 of the Crime Control Act, the Federal portion shall be 100 percent of such cost.
  • 42 U.S.C. §5675(c)(1) of the Juvenile Justice Act provides that, in the case of an award under Title II to an Indian tribe, if the Administrator, OJJDP, determines that the tribe does not have sufficient funds available to meet the local share of the cost of any program or project to be funded under the award, the Administrator may increase the Federal share of the cost
    thereof to the extent the Administrator deems necessary. This provision applies also to cooperative agreements.
  • In accordance with 48 U.S.C. §1469a, the awarding agency, in its discretion, shall waive any requirement for matching funds under $200,000 otherwise required by law to be provided by the certain insular areas. This waiver applies to ALL awards made to American Samoa , Guam, Virgin Islands, and Northern Mariana Islands.

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