4. FY26 Budget Narrative Template.docx

FY2025 Budget Narrative Template

A. PERSONNEL Comment by Starr, Najar D: Personnel Budget Guidance:

Staffing of employees should be appropriate to the successful implementation of the proposal and cost should conform to the requirements identified in 2 CFR 200.430. In general, direct employees of the non-federal entity whether receiving benefits or not are considered personnel. Consultants or contractors hired through a contractual agreement to assist with the project should be included under F. Contractual.

Salaries for direct-hire staff working on the project

Level of Effort (LOE) cannot exceed 100%

Narrative should explain roles on projects and include names or TBD

Exclude consultants and participants

Generally based on level of effort (LOE) –salary X % of time on project

A.1 – Project Manager Emily Jones will serve as the project manager for the project. She will be responsible for X, Y, and Z responsibilities at a level of effort of 25%.

Salary = $5,000 per month x 12 months x 25% LOE = $14,000

A.2 – Finance Manager Etc…

B. FRINGE BENEFITS Comment by Starr, Najar D: Fringe Benefit Budget Guidance:

Fringe benefits are allowances provided by employers to their employees as compensation in addition to regular salaries and wages. Benefit costs should be listed separate from salary costs with an explanation of how benefits are calculated for each category of employee (specify type and rate) as well as whether the benefit is required by law, an established policy of the non-federal entity, or a non-federal entity-employee agreement.

Non-salary benefits for employees, such as leave costs, insurance, pensions

Often calculated as a percentage of salary

Narrative should explain what benefits are included

If NICRA has fringe rate, that is the rate that must be used in the budget

B.1 – DC-based staff fringe benefits Fringe benefits are based on the organization’s 2019 rate of X% for US-based staff, based on this breakdown:

· X% - Benefit A

· X% - Benefit B

· X% - Benefit C

This rate was applied to the subtotal salaries for US-based personnel at

B.1 – Overseas staff fringe benefits

C. TRAVEL Comment by Starr, Najar D: Travel Budget Guidance:

Travel costs include expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business for the non-federal entity or participating in program activities conducted by the non-federal entity.

Transportation, hotels, visa fees, travel insurance and per diem for employees and not consultants or participants

Costs should be broken out as much as possible

Should distinguish between traveler types (staff)

Should indicate destination and purpose of the travel

C.1 – DC to COUNTRY The purpose of this trip is to XYZ. The following personnel are budgeted to travel to CITY, COUNTRY to conduct XYZ activities/

C.1.1 – Airfare Roundtrip international flights are required for staff to travel to X city to conduct XYZ activities. Flights will adhere to the Fly America Act….

1 roundtrip flight (DC to CITY) x $500/each x 3 travellers = $1,500 USD

C.1.2 Lodging Travelers will stay at a hotel for X nights during the trip. The maximum nightly rate according to State Department foreign per diem guidelines has been used for budgeting purposes.

4 nights x $122 per night x 3 travellers = $1,464 USD

C.2 – Local Transportation

D. EQUIPMENT (ANY TANGIBLE ITEM THAT EQUALS $10,000 OR MORE PER UNIT) ex. Vehicles, Generators, Multi-functioning digital copiers Comment by Starr, Najar D: Equipment Budget Guidance:

Equipment is defined as an item with a per-unit cost of $10,000 or more and a service life of more than one year. This includes information technology systems. If the item meets these criteria, property standards under 2 CFR 200.313 are required.

Any item costing $10,000 or more per unit and useful life of more than a year.

Should not include rental or lease of equipment (should go in “other direct”)

Narrative must include detailed description of equipment and intended use.

Verify that only the amount of the total cost that is allocable to the project is budgeted.

If applicant elects to use the 15% MTDC rate, equipment cots are excluded from the 15% rate.

E.1 – Machine X Once unit of Machine X will be purchased during the first three months of the project for XYZ purpose. Machine X will be purchased in the country of implementation and housed in X facility for use by X beneficiaries….

$6,000 Machine X x 1 unit = $6,000 USD

E. SUPPLIES (BELOW $10,000 PER UNIT) Comment by Starr, Najar D: Supplies Budget Guidance:

Materials and supplies including the cost of computing devices should be reasonable and necessary for the implementation of the proposal and conform to the 2 CFR 200.314. A computing device is a supply if the acquisition cost is less than $10,000, regardless of the length of its useful life. Supplies may include specific activity-related costs and/or the allocation of general supplies incurred by the non-federal entity as necessary to carry out the proposal.

Any item costing less than $10,000 per units

Common items include: Office Supplies, Computing Devices

Should be broken out as much as practicable

No lump sums

E.1 – Laptops Two laptops will be purchased for use by X personnel position and Y personnel position. These laptops will allow them to conduct XYZ activities/deliverables.

$1,000 per laptop x 2 units = $2,000 USD

E.2 – Workshop Materials Materials will be purchased for participants of the three X Workshops (Activity 2.4) to facilitate discussion and provide information.

Materials include:

· Notebooks = $5

· Participant Guide = $3

· Pens & highlighters = $2 Total per participant = $10

$10 materials per participant x 25 participants x 3 workshops = $750 USD

E.3 – Supply Item Y

F. CONTRACTUAL Comment by Starr, Najar D: Contractual Budget Guidance:

Subgrants – A subgrant means an award provided by the applicant as a pass-through entity to a subgrantee for the subgrantee to carry out a part of the Federal award. A subgrant is not payment for the contract of goods or services. See 2 CFR 200.330 for subgrant and contractor determinations.

Sub-awards for programmatic work

Must identify what is a sub-award and what is a contract

Narrative must explain what programmatic work the subrecipient will be performing

Name subrecipient if known; otherwise, TBD

Best Practice include:

List sub-award(s) as one line-item on prime recipient budget.

Provide separate detailed budget and narrative for subrecipient.

Include Unique Entity Identifier (UEI) for proposed sub-recipient in budget narrative.

If Applicant elects to use the 15% MTDC rate, the first $50K of each subaward is excluded from Modified Total Direct Costs (MTDC) base for indirect costs.

Contractor/Consultant Fees – These include payments to contractors/consultants for the purpose of obtaining goods or services for the non-federal entities own use and creates a procurement relationship. Items may include lecture fees, honoraria, translator costs or external evaluators.

Contracts for services/procurement i.e. consultant contract Narrative should explain the following:

Need/economy of consultant Brief scope of work/services Proposed consultant travel costs

F.1 Subgrant with Org X Grantee will enter into a subgrant agreement with locally-based NGO “Org X”. Org X will implement Activity 1.5 and 1.6 over a three-month period towards the end of the project.

Subgrant total = $5,700 USD Project Coordinator salaries – $500 per month x 2 positions x 3 months = $3,000 Local transportation to activity site – $50 per trip x 2 trips/month x 3 months = $300 Supplies for workshops (pens, paper, workbooks) - $5 per participant x 60 participants x 8 workshops = $2,400

*Note: If the subgrant’s budget is simple or of a small dollar amount, it may be permissable to break down the costs within the subgrant’s line item within the main Budget Narrative. However, if the subgrant’s budget is complex (more than a couple of line items), the prime organization should provide a separate Budget Narrative for the subaward, structured similarly to the main Budget Narrative template. The Grants Officer may use their discretion to determine whether a separate subgrant Budget Narrative is needed.

G. CONSTRUCTION Comment by Starr, Najar D: FAR 2.101 defines “Construction” as:

“Construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms “buildings, structures, or other real property” include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels.”

Not applicable.

H. OTHER DIRECT COSTS Comment by Starr, Najar D: Other Direct Costs Budget Guidance:

All other direct cost that don’t fit in other categories.

Examples: Banking fees, mailing costs, translation costs, insurance

Must be defined, not “miscellaneous” or “contingency” or “etc”

Please include Participant Support Costs under this section

Participant Support Costs include individuals participating in or attending program activities under a Federal award, such as trainings or conferences

Participants are NOT recipient employees or consultants

Direct costs that support participants and their involvement in an award

Participant Support Costs include the following:

Stipends Subsistence allowances Travel allowances Registration fees Per diem

If Applicant elects to use the 15% MTDC rate, participant support costs are excluded from Modified Total Direct Costs (MTDC) base for indirect costs

H.1 Office Rent Org personnel are based out of a shared office in CITY. Staff dedicate 25% of their total time to this project, so only 25% of shared costs (including rent) are charged to this project.

Average monthly rent = $1,000 per month x 12 months x 25% = $3,000 USD

H.2 Wifi/Internet

I. TOTAL DIRECT COSTS = $50,000

J. INDIRECT COSTS Comment by Starr, Najar D: Indirect Costs Budget Guidance:

Organizational costs; not tied directly to the grant project. Sometimes called overhead

If applicant has NICRA, narrative should explain that a NICRA is being used

If applicant does not have a NICRA and elect to use the De Minimis rate of up to 15% MTDC, the following costs must be excluded:

Portion of sub-awards over $50k Equipment Capital Expenditures Rental Costs - include all rental costs Tuition Remission Scholarships and Fellowships Participant Support Costs

Narrative should indicate that de minimis is being used Grantee has a negotiated indirect cost rate agreement (NICRA) through its cognitive agency X, dated X. The agreement includes a 35% rate, applied to the MTDC base, which excludes equipment, rental costs, and participant support costs.

MTDC = $45,000 x 35% = $15,750 USD

Total Indirect Costs = $15,750 USD

K. TOTAL PROJECT COSTS = $65,750 USD