1. (a) An applicant must prove that it possesses or can acquire the required matching funds (or in-kind match) to satisfy the matching funds requirement. An applicant's use of matching funds must comply with the same rules and guidelines applicable to the use of CJD grant funds.
2. (b) If CJD places a matching funds requirement on a grant, then the grantee must provide matching funds equal to the required matching funds percentage multiplied by the total project expenditures.
3. (c) A contractor may contribute toward the matching funds requirement, but the applicant bears the ultimate responsibility for satisfying the matching funds requirement.
4. (d) Applicants may use any funds received through legal asset forfeiture toward fulfilling the matching funds requirement.

5. (e) If an applicant applies for a grant under a funding source that allows in-kind contributions to satisfy part of the matching funds requirement, then the following rules apply:

   1. (1) In-kind contributions may consist of volunteer time, professional services, travel, building space, non-expendable equipment, materials, and supplies contributed during the grant period to the applicant by a third party.
   2. (2) In-kind contributions may include depreciation and use fees for buildings or equipment acquired by the applicant before the start of the grant period and used in the grant project. However, the applicant may only count depreciation that will occur during the grant period as an in-kind contribution. Use fees qualify as an in-kind contribution only if supported by cost and depreciation records maintained by the applicant.

   3. (3) Applicants must maintain records of all in-kind contributions that include at least the following:

      1. (A) a full description of the item or service claimed;
      2. (B) the area, expressed in square feet, of any donated building space;
      3. (C) the name of the contributor;
      4. (D) the date of the contribution;
      5. (E) the fair market value of the contribution and how its value was determined; and
      6. (F) in the case of a discount given, the contributor's signature on an affidavit of worth stating that the donor gave the discount because of the project's purpose.

Source Note:The provisions of this §3.73 adopted to be effective February 24, 2000, 25 TexReg 1297; amended to be effective July 16, 2000, 25 TexReg 6485; amended to be effective September 9, 2001, 26 TexReg 6645.