(a) The office reimburses area agencies with EISEP services allotments for 75 percent of approved expenditures, up to statutory limits. For the purposes of this section, proceeds from required cost sharing and participant contributions not used as local match shall be excluded from approved expenditures.

(b) The remainder of approved expenditures may be met through county (or City of New York) funds appropriated for EISEP services, other public and private funds (except for Federal funds allocated to states or localities according to population or other noncompetitive basis or funds used to match other State or Federal noncompetitive funds, or base-year expenditures), and in-kind contributions (such as salaries and fringe benefits of personnel assigned to EISEP services, including prorated salaries for personnel assigned part-time, the fair market rental value of donated space, and building maintenance) for direct program costs for which an audit trail is maintained. Funds received from required EISEP or CSE cost sharing may not be used as any part of the required local match.