(1) Matching funds must be "hard match" (cash) unless otherwise specified by federal regulation.

(2) Federal funds and income earned by the project are not allowed to be used as match except in the case of anti-drug abuse forfeitures.

(3) Matching funds need not be expended concurrently with federal funds, but must be expended prior to the closure of the subgrant.

(4) In-kind, or "soft match" services must relate directly to the project described in the application. Records of in-kind services must be kept by the applicant agency as required by law.

(5) If an entity other than the applicant agency is to contribute the local matching portion, a document of intent from said agency must accompany the application.