Financial Information for Project Planning

Level of Grant Assistance

Up to 50%. For all grant programs grant awards cover up to 50% of eligible project costs.

Grant Payments

Payment of a grant award takes place on a reimbursement basis. For full payment the project sponsor must incur costs for work actually completed and then file a claim for reimbursement. A 50% advance payment of the grant award may be available. Reimbursement is not permitted for work that takes place prior to your receipt of the grant award agreement except for pre-award engineering and appraisal costs. The project sponsor listed on the grant agreement is responsible for administering the project including bidding for contractual services and paying for grant project costs.

Important: All contracts and payment of expenditures must be processed through the grant project sponsor's financial system. You should talk to your DNR region CSS if this will not be the case.

Eligible Sources of Local Share

The local share of a project is defined as the portion of the acquisition or development cost that is not funded by the state or federal grant program.

Eligible sources of your local share may include:

• Cash from the project sponsor and force account labor, equipment, and materials
• Cash donated by a third party - foundations, organizations, businesses, individuals
• Grants or contributions from foundations, organizations, businesses and private individuals
• For the Stewardship grant programs, funds from the federal government. There may be some exceptions for Urban River grants. For the federal programs funds from state programs.
• Donations of volunteer labor, services, materials, equipment rental
• Donations of land from a third party if the contribution was made within 3 years prior to the acquisition or the development project, and the property is eligible for the particular grant program. NOTE: Lands acquired from developers through local park land dedication ordinances are not eligible for use as a donation.

Use of Force Account Labor, Equipment, and Materials

A local government's force account expenses may be used as an eligible source of sponsor match for a project. Force account is defined as employee labor, (including fringe benefits), equipment use or time, and the use of materials from the sponsor's inventory.

Use of Donations

Donation of Land from a Third Party

Using the value of donated property as sponsor match instead of cash is an excellent way for project sponsors to reduce the amount of cash they need to raise for either a land acquisition or development project. 50% of the fair market value of a donation of property from a third party may be used as all or part of the local match. The sponsor retains title to the donated property, but the property becomes part of the grant program. There are, however, some limitations on using property donations for sponsor match:

• The donated property must meet the criteria of the same grant program as the parcel being acquired or as the development project. The contribution of property must be made within 3 years of the acquisition or the grant application date for development projects.
• All donated property used as sponsor match is covered by the grant agreement and thus is subject to the same program requirements and conditions as the purchased property.
• Land donations must be made as a part of the project application and cannot be retroactive. Land to be donated must be in "private" ownership and not be previously dedicated to public outdoor recreation. Lands obtained through a subdivision parkland dedication ordinance are not eligible for donation purposes.
• Land can be donated in one area to support a project in another area within the same political subdivision or cooperating agency.
• The value of the donated property is determined by an appraisal that meets DNR standards.
• The project sponsor cannot receive more in grant funds than the amount of cash it actually needs for the purchase. If the value of the donated property is more than the amount of cash needed for the purchase, then any residual value from the donation which is left over may be credited to a subsequent application if it is submitted in the same fiscal year or the next one. The rules surrounding property donations can be confusing at first glance and you will want to discuss your particular situation with your CSS.

Donations of Volunteer Labor, Services, Materials, and Equipment Rental

Donations may account for up to 50% (the amount of the local match) of total eligible project costs. We encourage donations to project sponsors by private parties. There may be many individuals who are willing to contribute their time and energy for free. These donations, which usually consist of labor, equipment use, services, or materials may be used to reduce the sponsor's financial obligation. For instance, the Jaycees may volunteer to construct the walking trail in a project. Their time can be counted toward the local share of the project, provided it is properly accounted for. At the time you receive your grant award, a financial manual with forms will be included to help you document the volunteer contributions.

The following four scenarios (A-D) show how the value of donations affects the amount of cost share and the final cost to municipalities.

Eligible Land and Easement Acquisition Costs

Eligible costs include the fair market value of the property as determined by DNR approved appraisals or the purchase price, whichever is less.

Reasonable costs for the following items related to the purchase of property are eligible for 50% reimbursement if included as part of the grant application:

• Cost of Appraisal(s)
• Land Surveys
• Recording Fees
• Relocation payments
• Title Evidence
• Environmental Inspections & assessments
• Required Historical & Cultural Assessments

For the Land & Water Conservation Fund Program, relocation costs are the only other acquisition costs eligible for grant assistance.

Ineligible Land Acquisition and Easement Costs

• costs for administration of the project
• attorneys fees
• environmental clean up costs
• brokerage fees paid by the buyer
• real estate transfer taxes
• interest costs on installment purchases
• other costs not identified as eligible above.

Eligible Development and Renovation Costs

• Labor costs, including labor and contractual services costs directly related to and required for completing the project. Costs shall be based on the actual wage or services rate paid, including salary and fringe benefits
• Direct costs for materials and equipment used for project-related purposes over their useful life.
• Materials and services purchased by the sponsor may be credited as eligible expenditures. Examples of material/service purchases for outdoor recreation projects include hardware, paint, lumber, sand/gravel, concrete, landscape materials, signs, design/engineering services and contractor services (small expendable tools like a paintbrush may be included). Materials and services purchased for the operation and maintenance of the project site are not eligible.
• Leased equipment costs used for project related purposes. Costs for the use of equipment owned by the sponsor may not exceed the Department of Transportation's county highway rates.
• Engineering or planning fees to complete the project. These costs may be retroactive.
• Construction contract costs directly related to and required to complete the project.
• Bid advertisements and developing bid specifications.

Ineligible Development Costs

• Costs incurred prior to or after the grant project period.
• Administrative costs of the sponsor or consultant such as paper work associated with the project, including indirect costs; indirect costs are typically incurred for multiple purposes. Examples of indirect costs include, but are not limited to, utilities, administrative salaries, postage, and other expenses that are not supported by time reports or other documentation that identifies the expenditure as directly assignable to the Stewardship project.
• Costs to prepare the grant application or amend a Comprehensive Outdoor Recreation Plan.
• Costs to cover items that are not required for development of a basic facility, as determined by department or are not included in the grant agreement.
• Financing costs associated with the project.
• Costs not documented by an invoice and a canceled check, or other conclusive proof of payment.
• Costs incurred by a sponsor because of a contractor's breach of contract.
• Costs previously reimbursed from another grant source.