13sw_developing and managing your budget-denver july 2013 (4)

7/27/2019 13SW_Developing and Managing Your Budget-Denver July 2013 (4)

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Southwestern National Service TrainingConferenceJuly 24 25, 2013

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Developing and Managing

Your Budget


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You need to know . . .The information in this session is based onCNCS and Federal laws, rules, andregulations; CNCS grant terms and

provisions; and generally acceptedaccounting and financial principles and

practices.

Some state commissions, national grantees, orparent organizations may imposeadditional requirements.


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Welcome . . . Introduction of trainer

Program types represented

Senior Corps: RSVP, FGP, SCP Questions

As we go . . . ask clarifying questions and provideyour experiences

Questions at the end as time permits

We will do small group activities


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ContactsGrants Management Specialist States AddressBenjamin Stoltenberg

[email protected]

215-964-6314

Colorado, Louisiana, Idaho, Utah, Nevada

Lennette [email protected]

215-964-6309

Texas, Missouri, Kansas

Janet Caranci

[email protected]

215-964-6315

New Mexico, Oklahoma, Arizona, Arkansas,

Wink West (Senior Grants Officer)[email protected]

215-964-6333

Available for all Southwest States when GMS isout.
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Budget Session Limitation: This session is NOT intended for CNCS Fixed-Amount

Grant awards

Fixed-Amount awards Do not require budget submissions Are not subject to the OMB cost principles

Not managed or reported by line item budgets

General principles of developing a program-specific

budget and managing it internally in the granteeorganization are nonetheless essential practices formanaging fixed-amount programs


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Activity Budget Challenges Please complete

Activity 1 answering these questions

What are the most pressing issues you areconfronted with when preparing your annualbudget?

Write the first thing that comes to mind as it

relates to your program for the 5 terms listed


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Session Objectives1. Participants will develop skills fordeveloping a national service programbudget and narrative

2. Participants will understand the OMBCosts principles including allowable costs

3. Participants will develop budget

strategies and best practices to meetprogram requirements


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Session Highlights Designing your Senior Corps Budget

Understanding the Regulations around your

Budget Budget Controls and Amendments


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Functions of CNCS Program Budget Becomes part of the grantees contractual obligation

Serves as a blueprint for the activities supported underthe grant

Helps ensure conformance to provisions and regulatoryrestrictions

Used to monitor and measure progress towardsmeeting matching requirements

Used to monitor and compare budget to actualexpenses


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An effective budget must be:Realistic Reflects expected program revenues and expenses

and its capacity to carry out program activities

Consistent

Aligned with programs goals and objectives

Flexible

A projects financial and operating circumstancescan often change and must have a budget that canadapt to changing circumstances


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Financial and Grants Management InstituteApril 24 - 25, 2012 11

Effective Budget Management

2. Set upprogram/project goals

and objectives

4. Translate

strategy to dollars

6. Set upbudget control

process

7. Compare budgeted

to actual expenses

3. Decidestrategy to accomplish

goals

5. Prepare budget

8. Modify Budgetas necessary

1. Determineneeds of community

being served


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A Good Budget Design is Essential

A good design will ensure the following:

Establish realistic scope

Ensure youve covered the details Have a highly competitive proposal

Compliance with requirements

Have a solid guide for program execution Define expectations


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Budget Narrative Preparation Review your program/projects goals and

objectives

Estimate the resources needed to achieve

program/project goal, for example: Participants members or volunteers

Staff positions

Space, utilities, supplies, telephone

Medical and liability insurance Uniforms, training, Transportation


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Southwestern National Service Training

ConferenceJuly 24 25, 2013

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Budget Narrative Preparation

Follow instructions in NOFO/NOFA orother guidance received from CNCS

Organize narrative to fit budget categorieson budget form or proposal

Provide adequate descriptions and

calculations to support amounts


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Budget Narrative Preparation

Allocate costs based on a consistent anddocumented cost allocation plan. Examplesinclude:

Level of effort: percentage of time spent onactivity X salary

Rent: total CNCS program space total host

agency space Expenses: percentage of expenses for program

versus total organizations expenses


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OMB Cost Principles Used to determine the allowable costs under grants

or contracts (except Fixed-Amount Awards)

Designed so that Federal awards support their fair

share of the cost Provide information about factors that affect

allowability and information about reasonable,necessary, and allocable costs

Provide information on documentationrequirements

Encourage consistent treatment of costs


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Cost TypesDirect

Costs that are directly attributableto meeting the goals andobjectives of the programs

Indirect or Administrative

Administrative costs are general orcentralized expenses of overalladministration of an organizationthat receives assistance fromCNCS

Examples:

Allowable, direct charges forparticipants

Costs for staff who train, recruitor supervise participants

Uniform; special equipment Costs for independent program

evaluations Costs for travel

Examples:

Accounting, auditing, generallegal service

Costs for internal evaluation

General liability insurance Salaries & benefits related to

general organizationalmanagement and support


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Grant Guidelines

Federal

Grant GuidelinesEducational

Institutions

States, Local,

Indian Tribal

GovernmentsNon-Profits Hospitals

Administrative

Requirements

45 CFR 25432 CFR 215(formerly A-110)

45 CFR 2541OMB A-102

45 CFR 25432 CFR 215(formerly A-110)

45 CFR2543

2 CFR 215(formerly A-110)

Cost Principles 2 CFR 220

(formerly A-21) 2 CFR 225(formerly A-87)

2 CFR 230(formerly A-122)

45 CFR 74(HHS regulations)

Audit

Requirements *OMB A-133 OMB A-133 OMB A-133 OMB A-133

Notes:

CFR = Code of Federal Regulations* = Organization is subject to A-133 if it expends more than $500,000 in Federal funds in its fiscal year


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Examples of Unallowable Costs Lobbying

Fines and penalties

Expenses not necessary to meet program

objectives Entertainment, alcohol

Costs that would constitute waste, fraud and abuse

Unreasonable costs from a prudent person

perspective Costs with no logical basis for allocating to your

program


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Senior Corps Match Requirements

RSVP Cash and in-kind match

Foster Grandparents Program and Senior CompanionProgram 10% of total budget

Year 1 Year 2 Year 3 +

OverallMinimum

Match10% 20% 30%



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Essence of a Program Budget

Budget can be broken down by primarycategories of the specific program

Program Operating Costs, e.g., staff, equipment Stipended participants, if any

Indirect or Administrative Costs

Budget is divided into grantee share andCNCS share


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Senior Corps Budget StructureRSVP, FGP, SCP

Section I. Volunteer Support ExpensesA. Project Personnel Expenses

B. Personnel Fringe BenefitsC. Project Staff Travel Local and Long Distance

D. Equipment

E. Supplies

F. Contractual and Consultant Services

I. Other Volunteer Support Costs

J. Indirect Costs (indirect cost rate)Southwestern National Service Training


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Senior Corps Budget StructureRSVP, FGP, SCP

RSVP:

Section II. Volunteer Expenses

A. Other Volunteer Costs

FGP and SCP only:

Section II. Volunteer ExpensesA. Stipends

B. Other Volunteer Costs



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Key Budgeting Tips Ensure Budget meets CNCS cost guidelines for

each specific type of national service program:

Stipend requirements minimums or maximums

Match-minimum requirements & cash & in-kind specifics Special restrictions or limits on administrative costs or

indirect expenses

Required cost components of specific program

Examples: evaluations, 100% Project Directors, uniforms,health care, physicals, travel reimbursements


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Budget Final Review Checklist Is the budget presented in the format and forms

required by CNCS?

Is the budget consistent with CNCS's guidelines?

Are all cost calculations clearly described and correct ifduplicated?

Do the costs on all the budget forms, justification

and supporting documentation agree?

Does the budget cover all the project costs, CNCSfunds, and match?

Does the budget cover required costs, for example,program evaluation?


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Budget: Final Review Checklist (contd)

Is there adequate explanation for budget items?

Are all projected costs in the budget allowable?

Have the appropriate fringe and indirect cost rates been used? Doyou have an updated copy to send with your Application?

Is the budget realistic, reasonable, credible, and aligned withprogram goals?

Is the budget within the VSY limit for Fixed Grants?

Is your A-133 up to date in the Federal Audit Clearing House or

990 in GuideStar? Is your organization's information up to date with the System for

Award Management (www.SAM.gov)?
http://www.sam.gov/http://www.sam.gov/


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What Are Budget Controls?

Reviews of budget to actual expenses regularlyto avoid cost overruns

Joint review by both program and fiscal staff to

ensure maximum efficiency

Identification of expenditures not budgeted toensure they can be claimed

Identification of costs that need approval beforethey are incurred


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Budget Amendments

Know the required prior approvals neededby CNCS

Do not assume approvals have beengranted unless documented

Written approval required by FFMC



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See Handout 1


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Activity

Budget Costs?

Please review the 8 items to determine if they aredirect costs, indirect costs, and allowable


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Questions?


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Conference

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Helpful LinksDescription Website Address

Financial and Grants Management

Resources

https://www.nationalserviceresources.org/financial-

and-grants-managementA-133 Federal Audit Clearinghouse https://harvester.census.gov/fac/

System For Award Management www.sam.gov (must be updated yearly)

Payment Management System at

HHS

www.dpm.psc.gov

GuideStar www.guidestar.org

OMB Circulars www.whitehouse.gov/omb/circulars

Managing Senior Corps Grants http://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grants
https://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://harvester.census.gov/fac/http://www.sam.gov/http://www.dpm.psc.gov/http://www.guidestar.org/http://www.whitehouse.gov/omb/circularshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.nationalservice.gov/build-your-capacity/grants/managing-senior-corps-grantshttp://www.whitehouse.gov/omb/circularshttp://www.guidestar.org/http://www.dpm.psc.gov/http://www.sam.gov/https://harvester.census.gov/fac/https://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-managementhttps://www.nationalserviceresources.org/financial-and-grants-management

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