 Basic Education for Adults grants require non-federal matching funds, and grantees must maintain a minimum maintenance of effort, or MOE, from one year to the next. MATCH and MOE are often confused, so this video aims to offer clarity on the distinction between the two concepts. Basic Education for Adults, or BETA Master Grants, an Integrated English Literacy and Civics Education, or IELCE grants, require a 25% non-federal match requirement based on the total amount of funds expended. MATCH can be in the form of cash or in-kind, and shall include only non-federal funds used for adult education and literacy activities that are consistent with the purposes of the Adult Education and Family Literacy Act, or AEFLA. For example, if a grantee receives a $75,000 grant, the grantee must spend $25,000 in non-federal match funds on adult education and literacy activities. In your BETA Master and IELCE grant applications, you must describe how your organization will spend that 25% match requirement. Will you fund instructors with those non-federal matching funds? Will you buy supplies for your programs? All rules that apply to your grant funding also apply to your match funding. For example, grant funds can be used to purchase materials and books students can use in class, but not for materials or books given to students to keep. Matching funds have to follow those same rules. Again, your matching fund can be used to purchase materials and books that students can use in class, but not for materials or books given to students to keep. The one exception to all grant funding rules applying to matching funds is the administrative limit. BETA Master and IELCE grants limit your direct administrative expenses to no more than 5% of the grant total. Matching funds do not have an administrative limit. The administrative expenses that directly relate to the grant include salary and benefits for your program director to oversee the administrative aspects of your adult basic education program or a staff person doing data entry of basic education student data. Since all grant funding rules also apply to your matching funds, any employee salary or benefits charged to your matching funds must complete time and effort documentation. Because time and effort documentation must track each federal or non-federal funding source used as matched separately, be sure activities are labeled appropriately on time and effort reports for anyone charged to your matching funds. There is often confusion about whether the matching funds requirement is 25% or 33%. The requirement is that 25% of your total funds must come from non-federal matching funds. However, to determine the amount of matching funds required, you will divide your grant by 3 or multiply it by 33%. For example, let's pretend your grant is 75 cents. Divide that by 3 or multiply it by 33% to determine the match amount your organization must spend. In this example, the matching funds requirement is 25 cents. When you look at the total amount you must spend on your program, in this example the total is 100 cents or $1, 25% or 25 cents of that total comes from your non-federal matching funds while the other 75% or 75 cents comes from your grant. In order to continue receiving BETA grant funding, your organization must maintain the same amount of non-federal funds spent on your basic education for adults programming from one year to the next. This federal requirement is called Maintenance of Effort or MOE and ensures that federal funds are used to supplement but not supplant your organization's program funding. As a state, Washington is held to our Statewide Maintenance of Effort or MOE. For example, if across all local BETA providers in Washington, we collectively spent $1 million of non-federal funds on BETA programming in the prior year, we must also collectively spend at least $1 million of non-federal funds on BETA programming in the current year. If we collectively have a reduction in non-federal spending by more than 10%, the federal BETA funds our state received are reduced. For every non-federal MOE dollar lost, we lose one federal dollar. This is permanent federal grant reduction. In the event that our federal funds are reduced because our statewide system of BETA providers does not meet our statewide MOE requirement, any funding cuts our state receives as a result of that will be applied only to the local providers who reported reduced individual MOE expenditures. As such, it is extremely important that each provider maintain their level of non-federal BETA program spending from one year to the next. In summary, it is important that you know the difference between MATCH and MOE. Matching funds are the 25% of your total required funding that comes from non-federal funding sources. These are the funds you must identify in your grant application. Any staff or faculty funded by MATCH funds also have to complete time and effort documentation. Maintenance of effort or MOE is the requirement that your organization spend at least the same amount of non-federal funding on your BETA programming as you spent the prior year. Your MOE will include the funding your organization officially designates as MATCH and will likely include additional non-federal funding your organization spends on BETA programming. Staff or faculty paid by non-federal funds that make up MOE funding above and beyond your official MATCH dollars do not need to complete time and effort documentation. Finally, in order to help prevent a reduction in federal BETA funding, please ensure your organization meets your MOE level from one year to the next.