Section 161.04. Grant terms and conditions.

 

(1)   General. The department shall establish appropriate terms and conditions for each grant based on the project for which the grant is awarded. Terms and conditions shall be designed to ensure that grant moneys are effectively used for the purposes awarded. The terms and conditions shall be included in the grant contract under s. ATCP 161.07 .

(2)   Permitted uses of grant funds. Permitted uses for grant funds include the following:

(a) Operating expenses including salaries and wages, consulting services, travel, supplies and materials, and public information costs.

(b) Real estate rental payments. Real estate mortgage payments or land contract payments through which a grantee acquires equity in real estate are not a permitted use of grant funds.

(c) Equipment leases.

(d) Purchase of small or low cost equipment items which are normally depreciated within one year.

(e) Purchase of capital equipment. The amount awarded for this purpose in each year of the grant may not exceed the annual straight-line depreciation which would be allowed under generally accepted accounting principles for acquisitions of large capital equipment having a depreciation schedule longer than one year.

(3)   Prohibited uses of grant funds. Grant funds may not be used for any of the following, except as authorized under sub. (2) :

(a) Capital acquisitions by the grantee such as the purchase of land, buildings, or machinery.

(b) Administrative overhead expense.

(c) Funding for business start-up costs or expansion.

(d) Business loan payments.

(4)   Matching contributions. The department may give preference to applicants providing matching funds in the form of capital, land, labor, equipment, or other eligible categories of expenses.

Cr. Register, May, 1991, No. 425 , eff. 6-1-91.