Appendix B. Budget & Budget Narrative Instructions.pdf

Appendix B. Budget & Budget Narrative Instructions *Please read through this entire document before creating your budget. Always ensure that the amounts in the budget and budget narrative match your SF-424 and SF-424A Section B.*

The purpose of the budget and budget narrative templates is to provide a standardized, detailed list of the itemized costs required to complete a proposed project. Applicants should use the budget and budget narrative templates to expand upon the general cost categories of the SF-424A Section B and provide the specific items, per category, that will be charged to the award.

Applicants are required to use the Excel-based budget template, while the budget narrative should be written separately in Word. Applicants must download the Excel spreadsheet, labeled Appendix C. Budget Template, from the funding opportunity in Grants.gov. The format for the budget narrative can be found within this appendix.

Please do not submit previously accepted, internally formatted budgets. Everyone is expected to use Appendix C. Budget Template.

Budget Template Guidance

• The USCG created the budget template using approved line items from previously awards. These items are only intended to be examples of what your budget may look like;

not every category within this template will apply to your organization or the activities that you propose.

• Applicants are not required to use the same titles, descriptions, or rates. The budget should be tailored to your organization’s terminology, policies, rates, and descriptions.

• Applicants should not change the overall structure of the budget categories and column headings; however, applicants are encouraged to include as many (or as few) rows as necessary to convey all the associated costs of the project. Please delete any blank/unused rows in order to keep the budget as streamlined as possible.

• The budget should only have short, concise descriptions within the template.

Explanations and clarifying information should be included in the budget narrative.

• The USCG reminds applicants that your budget at the time of application is an informed estimate that may change over time. Applicants are encouraged to give their best estimate for anticipated costs even if there is a degree of uncertainty.

Specific Guidance for using Excel

• Ensure that your formulas are accurate and working. Check that all cells are properly accounted for in the calculations.

• Each category subtotal should appear in blue font in the same row as the category heading. This is to ensure that the subtotal is uniformly located and easily identifiable across all sections.

• Manually run spell check before submitting your budget. Excel does not highlight spelling or grammar mistakes within the text. Spell check can be found on the “Review” tab in the first position on the far left.

• The spreadsheet is pre-formatted to print or save easily into a letter-sized PDF. Please submit your budget in Grants.gov as a PDF to ensure that your information is locked and protected for the application review process.

Budget Narrative Guidance

• The budget narrative should describe, explain, and justify to the fullest extent possible, in the same order and in complete sentences, the itemized costs for the proposed activities identified in your budget. Reviewers will use this as a tool to assess the necessity and cost reasonableness for each line item.

• Applicants should use the budget narrative to expand upon what you want to request, for how much, and for what purpose. However, it should not be used as an “extension” of the project narrative.

• The budget narrative is the appropriate location to provide descriptions of job titles, roles and responsibilities, proposed travel, various contracts and their purposes, as well as context for specific line items requests. Please review the Instructions Matrix below for more information.

• The format for the budget narrative should mirror the lettering specified in the SF-424A Section B and budget template. In lieu of paragraphs, you may use bullets, numbers, or letters under each section header to convey the descriptions for your line items. If using numbers or letters, however, please also include the corresponding number or letter in the budget line-item description so it is easy to cross-reference between documents. This is especially helpful if a category has many individual line items that all warrant separate descriptions.

• Not every category within the template will apply to your organization or the activities that you propose. Applicants may write, “Not applicable,” in lieu of a description, as appropriate. Including this statement will alert reviewers that information is not unintentionally missing.

Budget Narrative Format The budget narrative should be written as a regular text document but organized into sections using the letters and headings from the SF-424A Section B and budget template (listed below).

Applicants should also follow the guidance in the Instructions Matrix for the types of descriptions that should be included in each section. Sections delineated with an asterisk (*) are sections that the USCG acknowledges may have very little to no description.

A. Personnel B. Fringe Benefits* C. Travel D. Equipment* E. Supplies F. Contractual G. Construction – Unallowable for this program H. Other I. Total Direct Charges* J. Indirect Costs K. Total*

General Advice

• Please remember that when applying for federal assistance, you should request the amount of money necessary to complete the proposed project – not an unrealistic amount that either appears to be “pie in the sky” or a lower, “competitive” rate that could potentially undercut your ability to be a successful recipient.

• Costs should be informed, reasonable, necessary, and clearly defined. Use the budget narrative to your advantage: include important, relevant information to demonstrate to reviewers that your budget is based in knowledge and experience.

• Refrain from using internal office jargon, short-hand, or abbreviations. Use clear, concise terminology, titles, or specific names, as relevant.

• Given that these costs at the time of application are estimates, we recommend that you include a few sentences within your budget narrative about how you would reprogram your money should cost savings become available. For example, you may want to purchase a greater number of items, add an additional traveler to a trip, or host an additional class. We encourage you to proactively think about the future of your activities and anticipated costs.

• Understand that these are cooperative agreements, and that by definition (see Section 3.

D. Federal Assistance Type: Cooperative Agreement), it provides for substantial involvement between the USCG and recipient carry out the activities of the award. Please be advised that if successful, USCG staff will work with you to negotiate and revise activities and their related costs, as necessary.

Instructions Matrix These are side-by-side instructions for the information that should be captured in the budget vs. the budget narrative. It also identifies where costs should be captured as it relates to employees, contractors, volunteers, committee members, etc.

Category Budget Budget Narrative

A Personnel • List by generic title the employees associated with the project (i.e.

these are staff who receive a W2).

• Itemize hourly rates and estimated hours.

• Describe the roles and responsibilities of the employees listed in the budget.

• Explain why their role is important to the proposal, what their primary tasks will be, and how they will contribute to the success of the project.

• Include all relevant employees.

B Fringe Benefits

• Include your organization’s fringe benefits rate.

• The rate should be calculated using the total amount from the Personnel category.

• Fringe benefits are understood as contributions to employee benefits such as social security, pension funds, etc.

• A minimal description is sufficient.

C Travel • This is for employee travel only.

• Include a brief title of the trip.

• Provide itemized cost estimates per trip.

• Estimates should include airfare and/or other transportation, accommodations, per diem, and other approved, associated costs as defined by your organization’s travel policy.

• Clearly identify and describe each trip charged to the award. This should include the purpose of the trip(s), how it relates to award activities, the number of travelers, and the anticipated destination(s).

• Ensure that any costs itemized in your budget are allowable per your organization’s travel policy.

• Applicants may use the published GSA per diem rates.

• If requesting international travel, applicants should be familiar with the Fly America Act and incorporate its requirements into your travel policy.

https://www.gsa.gov/travel/plan-book/per-diem-rates https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act

Category Budget Budget Narrative

D Equipment • Federal regulations define equipment as tangible personal property costing equal to or more than $10,000 per unit.

• List any equipment required for the proposed project.

• The anticipated cost per unit (CPU) should be defined, as well as the number of item(s) to be purchased or leased.

• Provide specific details about the item(s) to be purchased, such as make, model, technical specifications, etc.

• Explain why these items are necessary for the proposed activities.

E Supplies • Federal regulations define supplies as tangible personal property costing less than $10,000 per unit.

• List any supplies required for the proposed project.

• If making bulk purchases, please list each item separately with their estimated CPU and quantity.

• Provide specific details about the item(s) to be purchased and how they will be used to complete the proposed activities.

• If bulk item estimates may change based upon price quotes or the availability of products, include a list of potential items that may also be considered for purchase using the allocated funds.

F Contractual • Recipients must provide contractual support consistent with 2 CFR 200.331(b).

• List by generic title the contract staff associated with the project (i.e. these are staff who may receive a 1099 form).

• Itemize hourly rates and estimated hours.

• Include any contract staff travel.

Estimates should include airfare and/or other transportation, accommodations, per diem, and other approved, associated costs

• Describe the roles and responsibilities of the contract staff listed in the budget.

• Explain the service, expertise, and/or product to be provided and how it directly relates to the necessary execution of the award.

• Recipients must follow 2 CFR Part 200 Subpart D - Procurement Standards, in addition to their organization’s procurement policies.

• Pay special attention to 2 CFR

200.320 Procurement methods

https://www.ecfr.gov/current/title-2/part-200/section-200.331#p-200.331(b) https://www.ecfr.gov/current/title-2/part-200/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/current/title-2/part-200/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/current/title-2/part-200/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/current/title-2/section-200.320 https://www.ecfr.gov/current/title-2/section-200.320

Category Budget Budget Narrative as defined by your organization’s travel policy.

• Itemize by short name and dollar amount any consultant services, subcontracts, and subcontractors (if known) that will be hired to execute specific award activities.

• This may include services such as digital marketing, promotional materials, video production, graphic design, website maintenance, etc.

• For contractor travel, please follow the guidance and links provided in the Travel section of this matrix.

G Construction Unallowable for this program

H Other • Include any other applicable costs that do not fit into the pre-determined categories. This may include intangible items such as audit expenses, insurance, shipping costs, etc.

• Please refer to 2 CFR Part 200 Subpart E if you have questions regarding allowable costs.

• If you are seeking approval for committee travel or for volunteers who will travel on behalf of your organization to conduct business, list their expenses in this section.

If awarded, USCG may work with you to better capture or reclassify these costs, as necessary.

• Provide specific details about each expense and how it relates to the proposed activities.

• Use this section to describe, explain, and justify how the proposed expenses are necessary to the committee’s success.

• For committee travel, please follow the guidance and links provided in the Travel section of this matrix.

I Total Direct Charges No description is required. No description is required.

J Indirect Charges

• Specify your organization’s negotiated indirect cost rate – OR

– if your organization has never received a negotiated indirect cost

• If applicable, specify the indirect cost rate, the name of the federal https://www.ecfr.gov/current/title-2/part-200/subpart-E https://www.ecfr.gov/current/title-2/part-200/subpart-E

Category Budget Budget Narrative rate, you may elect to charge a de minimis rate of 15% of modified total direct costs.

• If your organization does not charge indirect costs to the award, please write a zero (0).

• Please see 2 CFR 200.414 Indirect costs for more information.

agency that negotiated it, and the date that it was approved.

K Total No description is required. No description is required.

https://www.ecfr.gov/current/title-2/section-200.414 https://www.ecfr.gov/current/title-2/section-200.414