Developing and Managing Your Budget Activity 2

Budget Brainstorming
1. BUDGET GUIDANCE/RULES: What guides you in designing your Federal grant budget?
OMB Circulars: aka Cost Principles Application Instructions FAQs NOFA/NOFO Applicant Accounting/Budgeting Systems General Accepted Accounting Principles/Standards Program Specific Regulations (e.g., Matching Rates) General Agency Regulations Your Program Design/Your Application Narrative Your PO/GO Preferences Your Indirect Cost Rate (Federally Approved) Common Sense

2. BUDGET STRUCTURE: What is the most appropriate budget structure?

Personnel (w/calculation examples) Salary x % of time Personnel Fringe Benefits as % of salary including: Unemployment Insurance (if state law) FICA Health Insurance Vacation Time (if your normal accounting practice) Other (e.g., Health Club Membership, Life Insurance, etc.) Staff Travel Cost/trip x number of trips Member Travel Equipment (as defined by the organization or $5,000 or greater) Supplies (calculation example) 12 months @ $300/month Contractual and Consultant Services $750 Training Staff Training Member Training Evaluation Other Program Operating Costs Member Costs Living Allowance

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Developing and Managing Your Budget Activity 2 Member Support costs Administrative/Indirect Costs Corporation Fixed Percentage Federally Approved Indirect Cost Rate

3. BUDGET APPROVAL: How does CNCS review and approve your initial grant budget?
Peer Review Comments Budget Compliance Review FFR Review (Check to see whether funds are being expended above or below the target thresholds) Closeout Check (Note: If grantee has either a) not submitted closeout document, or b) has not followed through with their closeout obligations Fiscal Assessments EPLS (Debarment and Suspension) EO 13224 (Terrorist List) A-133 (Federal Audit Clearinghouse) OIG Audit (Review) Clarification Period Revise Budget PO Certification GO Certification SGO Obligation/Award

4. BUDGET MAINTENANCE: What requirements exist once your budget is approved?

Compare actual spending to budget Monthly management procedures Enter all spending into accounting system Budget changes and amendment Any new subgrants or contracts need approval in budget and application New spending in object classes that had not previous approval for spending (e.g., adding supply costs when supply costs were not previously in the budget) Specific costs requiring prior approval before incurrence under OMB Cost Principles (e.g., overtime pay, renovation and alteration costs, and pre-award costs) Purchases of equipment using grant funds, unless specified in the approved application and budget (i.e., items with $5,000 or greater unit cost, or lower unit cost if organization policy) Cumulative changes between budget object classes when the next change will meet or exceed 10 percent of the currently approved budget

2013 Southwestern National Service Training Conference

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