(b) Counties having an approved runaway and homeless youth service plan shall be entitled to reimbursement by the State for up to 60 percent of the entire amount of those expenditures necessary to operate its runaway and homeless youth programs and to fund its runaway and homeless youth service coordinator positions, after deductions are made for any Federal or additional state funds received or allocated to such programs. Reimbursable expenditures may include the following:

1. (1) staff salaries;
2. (2) fringe benefits;
3. (3) equipment;
4. (4) rental of operating space;
5. (5) utilities;
6. (6) insurance;
7. (7) youth transportation;
8. (8) shelter;
9. (9) food;
10. (10) clothing;
11. (11) supervision;
12. (12) individual, group and family counseling; and
13. (13) medical and dental care.

(c) The county's share of the total expenditures incurred for the operation of transitional independent living programs may be met through private funding and valuation of in-kind services, as defined in this Subpart, however, such receipt of in-kind services shall not, in the aggregate, be more than 50 percent of such county's share.

1. (1) in-kind services shall not be used in a manner that reduces the total services provided to runaway and homeless youth;
2. (2) in-kind services shall be used only if the item or services contributed are reimbursable under this section;
3. (3) in-kind services shall not be used if the same services have been counted toward matching another Federal or state program or grant;
4. (4) valuation of in-kind contributions shall be based on fair market value at the time of donation;
5. (5) donations valued at $500 or more shall be counted at an annual rate of two percent for buildings and capital improvements or 6²/₃ percent for equipment;
6. (6) valuation of volunteer time shall be consistent with ordinary rates of pay for similar work;
7. (7) donations of staff and volunteer time shall be supported by timesheets, job descriptions and a pay scale; and

8. (8) donations of staff time shall not be counted as in-kind services if such staff are paid from state or Federal funds.

   (e) Funding of capital improvements.

   Subject to the availability of funding, consideration will be given to granting state aid for expenditures on capital improvements, as follows:

9. (1) capital improvements or modifications shall be approved by the division, prior to construction, if state aid will be requested for such costs; and

10. (2) division approval shall be granted only where a program demonstrates that capital improvements or modifications are required in order to comply with this Subpart and construction funds are not available through local and state capital improvement programs.

    (f) Funds.

    Reimbursements made pursuant to this Subpart shall be derived solely from funds appropriated for runaway and homeless youth programs.

    (g) Nonreimbursable expenses.

    State aid shall not be granted for expenditures which are not ordinary program costs, such as the following:

11. (1) purchase of land and buildings;
12. (2) landscaping;
13. (3) taxes from which municipalities are exempt;
14. (4) personal membership fees in clubs or professional organizations and associations;
15. (5) salaries of personnel who are responsible for discharging law enforcement responsibilities;
16. (6) interest and penalty costs incurred by a municipality as program expenses;
17. (7) activities for which a fee is charged, however, a residential transitional independent living support program shall be entitled to charge rent for residential services provided to homeless youth if such charge has been approved by the division in accordance with this Subpart as part of the program's design. Any amount paid for rent shall not be considered as part of the local match requirement, but shall be applied toward daily living expenses or held aside for purposes of assisting the resident in his or her eventual transition to independent living;
18. (8) activities which are normally considered part of a regular school curriculum;
19. (9) awards, other than inexpensive prizes such as trophies, medals or ribbons;
20. (10) hotel or motel costs of housing youth; and
21. (11) youth stipends.

(d) Inclusion of in-kind services.

In order to include the value of in-kind services as part of expenditures for which state aid may be granted, all in-kind services shall be verified by the county youth bureau and approved by the division pursuant to the following criteria: