revised budget workshop ana zambie and carla kirksey
TRANSCRIPT
Revised Budget Workshop
Ana Zambie and Carla Kirksey
Objectives
Review the Process of the Revised BudgetReview the Cost Analysis ChecklistProvide opportunity to ask questions regarding budget items
Basis of Your Budget
Your approved Application Project NarrativeYour approved Application ED 524 (Sections A, B & C)• Section A: Categorical description of use of Federal funds • Section B : Categorical description of the use of Non-
Federal funds• Section C: Narrative of the use of Federal AND Non-Federal
funds
Attachment JSubsequent Changes and Revised Budgets
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OME Monitoring of Fiscal Matters
Review of Application BudgetReview of Revised BudgetReview of APR Expenditure ReportMonthly or Quarterly Review of DrawdownsReview of Grant Balance at ContinuationReview of Use of Funds for Specific Requests On-site and Desk MonitoringCarryover Review
Revised Budget Checklist Overview
Calculations
Category
Checks
Cost Sharing
Indirect Cost
Review of Application BudgetNot Required by program laws or regulationsIf proposed in application, must be provided Must be outlined in ED 524, Sections B (Table) and Section C (Narrative)Treated as Federal fundsare treated
How Is Cost Sharing / Matching Handled?
The Budget Process
Application With Budget Request
ED 524
Budget AnalysisED 524
Attachment Js
Department’s Recommendation
GANAttachment Js
Your Acceptance of RecommendedRevised Budget
Expenditure Reporting & Carryover Projection
APR, Cover Sheet and Section E
Department’s Recommended Continuation
GANOriginal Attachment Js
Your Acceptance of Continuation & Explanation
of CarryoverRevised Budget
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What Are the Basic Considerations of Cost?
Reasonable
AllowableAllocable
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How Do I Determine a Reasonable Cost?
A cost is reasonable if it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
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How Do I Determine an Allocable Cost?
A cost is allocable to a particular cost objective if the goods/services involved are chargeable/assignable to such cost objective in accordance with relative benefits received/other equitable relationship.A cost that can be traced to specific activities of a grant project.
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How Do I Determine an Allowable Cost?
Is necessary & reasonable for the performance of the awardConforms with Federal cost principlesIs consistent with uniform procedures of the organizationIs determined in accordance with generally-accepted accounting principlesIs not included in any other Federally-financed grant (unless authorized by statute) 11
What is Equipment?
Tangible nonexpendable personal property • having a useful life of more than one year and • an acquisition cost of $5,000 or more per unit.
WHAT ARE SUPPLIES? Fungible property (paper, pens, pencils, calendars, CDs,
DVDs, chairs, desks, etc.) Less than $5,000 per unit NOT equipment, intangible property (e.g., software
designs), debt instruments, and contractor inventions (e.g., student classroom alertness monitor/SCAM)
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Indirect Costs
Difference between agreed upon indirect cost and a restricted indirect cost rate cannot be used for cost sharingDirect Cost Base must not include • Each sub-award in excess of $25,000 (contracts)• Stipends• Tuition and related fees• Equipment, as defined in 34 CFR 74.2
8% applies to sub-awards that fund trainingIf negotiated indirect cost rate is lower, the grantee must use the lower of the two
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What Kind of Financial Management Systems Do I Need?
• Relate financial data to performance data• Accurate, current, & complete disclosure • Records that identify source & application of
funds• Effective control over & accountability for all
funds, property, & other assets• Written procedures
to minimize the time between transfer of funds to the recipient
for determining costs reasonableness, allocability, & allowability
• Accounting records supported by source documentation
• May require adequate bonding & insurance14
Things to Remember
Email the 524 form in a Word document to your program officer with only the current year’s column.Revised budgets are due August 30, 2013.Have proper documentation on file at your project concerning contractors.• Refer to the Cost Analysis Checklist for the additional
information on documentation for contractors.Send a full narrative only if there are changes to the budget.• Highlight specific changes from the original
application’s budget.
Revisions
Financial expression of the projectRequired to report deviations from budget and project plans Request prior approvals for budget & plan revisions, in accordance with EDGAR 74.25Grantee prepares & submits a budget revision to acknowledge & accept the award & all conditions 16
Budget Revision—Expanded Authority
A one-time extension of the expiration date of the award of up to 12 months• To complete project activities, NOT spend down
fundsCarry forward unobligated balances to subsequent funding periods
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Carryover BalanceUnexpended funds from a previous budget period that are authorized for allowable costs in a current budget period
Can be used in the next budget period for allowable activities without any action by ED or the grantee unless restricted by program staff as an award conditionProgram staff may require a description of how the unexpended funds will be usedThis year, some grants were offset for carryover so funds could be redistributed.
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Budget Revisions—Prior Approvals• Change in scope or objectives • Need for additional funding• Change in key personnel specified in the application • Absence for more than 3 months of PD or PI• A 25% reduction in time of PD or PI• Transfer of amounts budgeted for indirect costs to absorb increases in
direct costs, or vice versa• Costs that require prior approval in accordance with 2 CFR • Transfer of funds allotted for training allowances (stipends) to other
categories of expense• If NOT described in the application & funded in the approved award, the
transfer or contracting out of any work under an award
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Generally not approved by Department
ReferencesProgram Statute: Title IV, Section 418A of the Higher Education Act of 1965 as amended by section 408 of the Higher Education Opportunity Act P.L. 110-315 (H.R. 4137)Program Regulations: 34 CFR Part 206Education Department General Administrative Regulations (EDGAR)Cost Principles• Circular A-21 for Educational Organizations
(2 CFR Part 220)• Circular A-122 for Non-Profit organizations (2
CFR Part 230)Grant AttachmentsFAQs Conferences and Meetings
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OME ContactHarold Gomes 202-260-0974 [email protected] Kirksey 202-260-2114 [email protected] Monaghan 202-260-2823 [email protected] Ramsey 202-260-2063 [email protected] Weiss 202-260-7496 [email protected]
Always seek the assistance of your
program officer first!