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<br /> 3.2 The Library Services and Construction Act requires that LSCA Title <br /> II funds be matched on a do11ar to dollar basis. In order to <br /> satisfy this matching requirement at the state level, the State <br /> Library is requiring that each grant recipient expend an amount in <br /> cash at least equal to the amount of the federal grant. The cash <br /> match can be from a foundation grant; gifts from citizens, cor- <br /> porations or organizations; Friends of t~e Library donation; <br /> revenue-sharing funds; FHA loan; revenues from the sale of bonds <br /> or certificates of obligation, locally-appropriated funds; or com- <br /> bination of the above. There is no date mandati"g when the <br /> required matching funds must be available. If the matching <br /> requirement is not met, as determined by the audit, the local <br /> government will have to refund all or a portion of the federal <br /> LSCA grant. While Federal revenue-sharing funds to cities and <br /> counties and Federal Housing Authority (FHA) loans may be used by <br /> applicants as matching funds for the construction grant, as indi- <br /> cated above, no other federal funds may be used as matching funds. <br /> 3.3 All owab 1 e Costs <br /> The following costs may be paid from LSCA Title II funds in accor- <br /> dance with the Library Services and Construction Act: <br /> a. Erection of new buildings to be used for public library faci- <br /> 1 it i es. <br /> b. Expansion, remodeling, and alteration--as distinguished from <br /> maintenance and repair--of existing library buildings or <br /> buildings to be used for public library purposes. <br /> c. Expenses--other than interest and the carrying charges on <br /> bonds--related to the acquisition of an existing building or <br /> of land on which there is to be construction of new buildings <br /> or expansion of existing buildings to be used for public <br /> library buildings. <br /> d. Site grading and improvement of land on which these facili- <br /> ties are located. <br /> e. Architectural, engineering, and inspection expenses incurred <br /> after site selection. <br /> f. Expenses related to the acquisition and installation of ini- <br /> tial equipment to be located in a public library facility. <br /> This equipment includes all necessary building fixtures and <br /> utilities, office furniture, and public library equipment. <br /> An applicant may not include the cost of books or other <br /> library materials. <br /> 3.4 Indirect Cost Reimbursement <br /> The local government administering the grant funds may propose to <br /> claim reimbursement from grant funds for administrative expenses <br /> incurred so long as such reimbursement is in accordance with OMB <br /> Ci rcular A-a7. <br /> -9- <br />