In accordance with the provisions of 49 CFR Part 350.301, States must maintain a level of effort to qualify for MCSAP funding, including:

(a). The State must maintain the average aggregate expenditure of the State and its political subdivisions, exclusive of Federal funds and State matching funds, for CMV safety programs eligible for funding under this part at a level at least equal to the average level of expenditure for the 3 full fiscal years beginning after October 1 of the year 5 years prior to the beginning of each Government fiscal year.

(b). Determination of a State's level of effort must not include the following three things:

1. Federal funds received for support of motor carrier and hazardous materials safety enforcement.
2. State matching funds.
3. State funds used for federally sponsored demonstration or pilot CMV safety programs.

(c). The State must include costs associated with activities performed during the base period by State or local agencies currently receiving or projected to receive funds under this part. It must include only those activities which meet the current requirements for funding eligibility under the grant program.

All MCSAP eligible costs, whether they are billed to the grant or not, must be tracked and included in the MOE calculation.

Indirect costs are MCSAP-eligible expenses as defined in 49 CFR 350.311 and include such costs as overhead personnel, accounting or human resources staff, office space, supplies, utilities, etc. Although the State may choose not to seek MCSAP reimbursement for indirect costs, indirect costs (either the State's approved indirect cost rate or actual indirect costs) are MCSAP-eligible expenses and, therefore, must be included in the State's MOE calculation. An MOE calculation template is available as an Excel spreadsheet at www.fmcsa.dot.gov/safety-security/safety-initiatives/mcsap/mcsapforms.htm to assist the State in providing the minimum level of budgetary information as required.