Putting the statement in different form so you can understand it.
Merit source are specified on particular board for awarding allocated sMerits services.
Merit source are specified on particular board for awarding allocated sMerits services.
English may not be my first language, but I can understand it quite well.
Quoting the words of theymos himself, which he mentioned as requirements to become a merit source.
If you want to be a merit source:
1. Be a somewhat established member.
2. Collect TEN posts written in the last couple of months by other people that have not received nearly enough merit for how good they are, and post quotes for them all in a new Meta thread. The point of this is to demonstrate your ability to give out merit usefully.
3. We will take a look at your history and maybe make you a source.
I don't see anywhere he mentioned that the interested board or local board must be present on the merit source application.
When I see new / new-ish members that have 90% of their posts in these threads,
Fake newbies. 
Even though merit sources are free to spend their merits as they wish but if they can scrutinize such users and ignoring them will eliminate the account farming.