1. Matching for Formula Grants Wednesday, May 25, 2011 Session 66 Presenter: Brenda Barnett Branch Chief, Formula Grants

2. Matching Programs Research Programs –Hatch Regular –Hatch Multistate –Evans Allen / Section 1445 –Animal Health –McIntire Stennis Extension Programs –Smith Lever –CSRS –FERS –Extension Program / Section 1444 –Special Needs –Pesticide Safety Education Program

3. Formula Funds Matching Matrix Research Programs: –Animal HealthAmount over $100K –Hatch Regular100% (Territories 50%) –Hatch Multistate100% (Territories 50%) –McIntire Stennis100% (Territories -0-) –Evans Allen (Section 1445)100% Extension Programs –Smith Lever100% –CSRS100% –FERS100% –Extension Program (Section 1444)100% –Special Needs100% –Pesticide Safety Education Program1005

4. Hatch Act 1887 Hatch Regular & Hatch Multistate Section 3(d)(1) of the Hatch Act of 1887 (7 U.S.C. 361c(d)(1)) states, with regarding to institutions in the 50 states “no allotment shall be made to a State under subsection (b) or (c), and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for agricultural research and for the establishment and maintenance of facilities for the performance of the research.” However, section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 361c(d)(4) provides that “Effective beginning for fiscal year 2003, in lieu of the matching funds requirement of paragraph (1), the insular areas of American Samoa, the Commonwealth of Puerto Rico, Guam, Micronesia, Northern Mariana Islands, and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount

5. Hatch Act 1887 equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively, under this section…..The Secretary may waive the matching funds requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.” Section 7403 of the Food, Conservation, and Energy Act of 2008 amended section 3(d)(4) of the Hatch Act to subject the District of Columbia to the same matching requirements as the insular 1862 Land- Grant institutions upon enactment (May 22, 2008).

6. Hatch Regular & Hatch Multistate Formula Grant Opportunity Waivers – SF 424 Mandatory Application –1862 land-grant institutions in the insular areas of American Samoa, the Commonwealth of Puerto Rico, Guam, Micronesia, Northern Marianas Islands, Virgin Islands, and the University of the District of Columbia.

7. Hatch Regular & Hatch Multistate Waiver Criteria Natural Disaster; State and/or institution facing a financial crisis; Demonstration of a good faith effort to obtain funds.

8. FGO Guidance on Waivers Frequency –Waivers should be submitted with the submission of the SF 424 Mandatory application in Grants.gov: Initial: A pre-waiver may be granted when the institution recognizes that the State will be unlikely to satisfy the matching requirement (i.e., shortfall of matching funds) for the fiscal year. Update/Final: A post-waiver may be granted when the institution knows the exact amount of the shortfall of matching funds for the fiscal year.

9. AREERA (Hatch Regular & Hatch Multistate) AREERA (Section 105 & 204 Compliance) –Research or Extension Director may submit a letter to the NIFA Director requesting a waiver. –All LGI’s should submit a request for a waiver as soon as it is recognized that the State will be unlikely to satisfy the matching requirement. –Post waivers require LGI’s to provide an explanation and justification as to why the request was not made in the appropriate FY.

10. AREERA (Hatch Regular & Hatch Multistate) AREERA Waivers (Cont.) –Waiver requests must indicate the name of the institution, type of requests (i.e. multistate extension or integrated), Appropriate FY, the basis for requests, (i.e., one or more of criteria), supporting justification, back-up documentation (i.e., newspaper articles and/or clippings; State budget projections), and amount. –All waivers are approved by the NIFA Director.

11. AREERA Waiver Criteria Natural disaster, flood, fire, tornado, hurricane, or drought; State/institution facing a financial crisis; and/or Other similar circumstance.

12. Animal Health 7 U.S.C. 3200 provides that “No funds in excess of $100,000…shall be paid by the Federal Government to any State under the subchapter during any fiscal year in excess of the amount from non-Federal sources made available to and budgeted for expenditure by eligible institutions in the State during the same fiscal year for animal health and disease research. The Secretary is authorized to make such payments in excess of $100,000 on the certificate of the appropriate official of the eligible institution having charge of the animal health and disease research for which such payments are to be made. If any eligible institution certified for receipt of matching funds fails to make available and budget for expenditure for animal health and disease research in any fiscal year sums at least equal to the amount for which it is certified, the difference between the Federal matching funds available and the funds made

13. Animal Health Available to and budgeted for expenditure by the eligible institution shall be reapportioned by the Secretary among other eligible institutions of the same State, if there are any which qualify therefore, and, if there are none, the Secretary shall reapportion such difference among the other States.”

14. McIntire Stennis Formula grant recipients are to provide matching (see Part VIII.A.6 – below), either cash or in-kind, on a dollar-for-dollar basis on all Federal funds allotted. Eligible institutions located in insular areas (i.e., American Samoa, Guam, Micronesia, Northern Marianas, Puerto Rico, and the Virgin Islands) are not required to match if the allocation is below $200,000. FGO Part VIII.A.6 - Matching Funds means those Non-Federal funds (and the value of qualified in-kind contributions) made available by a State-certified institution for forestry research which are used to meet the matching requirements specified in Section 4 of the McIntire-Stennis Act (16 U.S.C. 582a-3)

15. Smith Lever Act Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1)) states, with regard to institutions in the 50 states, “no allotment shall be made to a State under subsection (b) or (c), and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work.” However, section 3(e)(4) of the Smith-Lever Act (U.S.C. §343(E)(4)) provides that “Effective beginning for fiscal year 2003, in lieu of the matching funds requirement of paragraph (1), the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Marianas Islands,] and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively, under this section…..

16. Smith Lever Act The Secretary may waive the matching fund Requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.”

17. Civil Service Retirement System (CSRS) Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(E)(1) states, with regard to institutions in the 50 states, “no allotment shall be made to a State under subsection (b) or (c), and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work.” However, section 3(e)(4) of the Smith-Lever Act (U.S.C. §343(e)(4) provides that “Effective beginning for fiscal year 2003, in lieu of the matching funds requirements of paragraph (1), the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Mariana Islands,] and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively, under this section.

18. Civil Service Retirement System (CSRS) The Secretary may waive the matching fund requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.”

19. Federal Employees Retirement System (FERS) Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1) states, with regard to institutions in the 50 states, “no allotment shall be made to a State under subsection (b) or (c), and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work.” However, section 3(e)(4) of the Smith-Lever Act (U.S.C. §343(e)(4) provides that “Effective beginning for fiscal year 2003, in lieu of the matching funds requirements of paragraph (1), the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Marians Islands,] and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively, under this section.

20. Federal Employees Retirement System (FERS) The Secretary my waive the matching fund requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.”

21. Special Needs 1862 Land-grant institutions in the 50 States must match 100% of the Special Needs funds they receive with funds from non-Federal sources such as State or County appropriations. The matching must be in the form of cash. Matching funds must be used for extension activities approved in the eligible institution’s 5-year Plan of Work.

22. Pesticide Safety Education Program (PSEP) 7 U.S.C. 136u(a) states that “Effective with the fiscal year beginning October 1, 1978, there are authorized to be appropriated annually such funds as may be necessary for the Administrator to provide through cooperative agreements an amount equal to 50 percent of the anticipated costs to each State or Indian tribe, as agreed to under such cooperative agreements, of conducting training and certification programs during such fiscal year. If funds sufficient to pay 50 percent of the cost for any year are not appropriated, the share of each State and Indian tribe shall be reduced in a like proportion in allocating available funds.”

23. NARETPA Section 1444 – Extension Programs and Section 1445 Evans Allen NARETPA Section 1449 (7 U.S.C. 3222D) states that “the State shall provide matching funds from non-Federal sources. Such matching funds shall be for an amount equal to not less than…100 percent of the formula [grant] funds to be distributed to the eligible institution for fiscal year 2007 and each fiscal year thereafter…Notwithstanding [redistributing the funds], the Secretary may waive the matching funds requirement…above the 50 percent level for any fiscal year for an eligible institution of a State if the Secretary determines that the State will be unlikely to satisfy the matching requirement.

24. NARETPA Section 1444 – Extension Programs and Section 1445 Evans Allen 7 CFR 3419.1 defines “matching funds” as “funds from non-Federal sources made available by the State to the eligible institutions….[for] programs or activities that fall within the purposes of agricultural research and cooperative extension under Sections 1444 and 1445 of NARETPA…or [for] qualifying educational activities. Matching funds means cash contributions and excludes in-kind matching contributions.” It defines “non-Federal sources” as “funds made available by the State to the eligible institution either through direct appropriation or under any authority (other than authority to charge tuition and fees paid by students) provided by a State to an eligible institution to raise revenue, such as gift acceptance authority or user fees.” Finally, it defines “qualifying educational activities” as “programs that address food and agricultural sciences components of an eligible institution.

25. NARETPA Section 1444 – Extension Programs and Section 1445 – Evans Allen 7 CFR 3419.6 states that “The required matching funds for the formula programs shall be used by an eligible institution for agricultural research and extension activities that have been approved in the plan of work required under Section 1444(d) and 1445(c) of the NARETPA 1977…or for qualifying educational activities.”

26. Section 1444 – Extension Program Section 1445 – Evans Allen Waiver Criteria Natural Disaster State and/or institution facing a financial crisis Demonstration of a good faith effort to obtain funds.

27. Questions??? For information regarding formula grants please contact Brenda Barnett, Branch Chief, Formula Grants, Awards Management Division, National Institute of Food and Agriculture via email at: bbarnett@nifa.usda.gov THANKS!