Scenario 1: Grant requires a match. Non-grant fund match. Match does not reimburse grant ineligible expenditures.

Grant A has a total budget = $1,000,000.00 (including match). The grant funds 50% of Project 100 eligible expenditures up to a maximum of $500,000.00. Grant A requires the grantee to match 50% of the project expenditures up to a maximum of $500,000.00. The grantee will use funding from a local or non-grant fund to match the grant funding. The match does not cover or fund grant ineligible expenditures.


Grant Setup:	Grant A is established with an award amount and grant budget of $1,000,000.00. The match flags set on Grant Setup (GM15) for Grant A are as follows: Match Required = Y - (Yes), Match Ineligible = N - (No), and Match Percent = 50%. (This indicates the grant requires a match, the match will only fund grant eligible costs, and the match will fund 50% of project expenditures.)
Non-Grant Funding Setup:	The match is established as a non-grant funding source - Fund 1 with a fund amount of $500,000.00.
Contract Funding Setup:	Project 100 is established with a contract amount $1,000,000.00 and the following funding sources: Priority 1: Grant A, Fund Percent 50%, Fund Amount $500,000.00. Priority 2: Fund 1, Fund Percent 50% (50% of remaining), Fund Amount $500,000.00, Match Fund - Grant A.
Expenditure Allocation:	When the Grant Expenditure Allocation (GM120) is run for Project 100, only posting level activities (tasks) and cost account categories flagged as eligible = Y on Grant Eligible Activities/Account Categories on GM20.4 for Grant A as eligible for allocation will be processed. Both the Grant (Grant A) and the Match (Fund 1) use the grant eligible activities/account categories to determine funding allocation. (The match fund inherits the eligible expenditures rules established for Grant A). Any posting level activities and cost account categories flagged as eligible = N (ineligible) will error and print on the Grant Expenditure Allocation Unprocessed Transaction report. In this scenario, either additional non-match funding needs to be established to cover grant ineligible expenditures or ineligible expenditures should be posted to another project activity used to capture ineligible expenditures.