Budget and Budget Narrative Instructions.pdf

APPENDIX A

BUDGET INSTRUCTIONS

The following provides guidance for the preparation of a proposal’s budget using S/GWI’s recommended budget template. All budget costs should be presented in US dollars and rounded to the nearest dollar. (Note: Information included in the budget should be explained in greater detail in the budget narrative.)

The budget template includes columns reflecting the funding requested from S/GWI and the funding that will be covered by a cost share, if applicable. Note that if program income is expected from this project, it must be reapplied to the project; accordingly, it must be noted in the budget in the appropriate column and must also be explained in the budget narrative. For more information on this topic, please refer to the “Accounting for Program Income” section below.

S/GWI anticipates that an organization will include the budget categories listed below when preparing an estimate of expenses for carrying out the proposed project.

REQUIRED BUDGET CATEGORIES

Complete the budget template for each of the categories and line-items that are applicable to your project.

PERSONNEL:

This category includes annual salaries/wages, stipends, allowances, differentials, bonuses or extra month’s salary and any anticipated termination/severance pay for any personnel to be charged to the proposed agreement.

All positions listed should indicate the amount of time (expressed as a percent), the rate of pay, and the associated unit measurement (hour/month/year) anticipated to fulfill project implementation.

S/GWI will not authorize personnel positions to be charged based on a flat monthly fee that includes salaries, benefits, travel costs, etc.

FRINGE BENEFITS:

This category should identify the various fringe benefits such as pension plans, health benefits, or other benefits offered to employees for which S/GWI will be charged under the agreement. While the cost of individual benefits need not be specified, the total cost, including the percentage of salaries, if appropriate, should be shown. The benefits must be consistent with the organization's established personnel policies and practices for all of its employees, not just for those employees who may be funded by the Government.

TRAVEL:

List travel for all employees and consultants. Travel must be identified as in-country or international.

Indicate the per diem allowance calculations. Per diem rates may not exceed the published USG allowance rates, but applicants do have the option of using lower per diem rates. All anticipated trips must be listed and are subject to S/GWI approval. Any travel not included in the requested budget and not approved by S/GWI may not be charged to the agreement.

EQUIPMENT:

This category must include a complete and detailed listing of all non-expendable equipment anticipated to be purchased for program activities and to be charged to the agreement. Non-expendable equipment is that which has: 1) a useful life of one year or more and an acquisition cost of $5,000 or more per unit. However, consistent with your policy, lower limits may be used.

This would include vehicles, computer equipment valued over $5,000, specialized equipment, air conditioning/heating equipment, and installation, maintenance, and anticipated repair costs.

For each type of equipment requested, provide a description of the equipment, the cost per unit, the number of units, and the total cost. Any equipment that may be determined, after the initial budget approval, to be required to meet the program objectives must be specifically approved by S/GWI in writing prior to the purchase. Equipment not included in the approved budget or subsequently approved by S/GWI will be considered an unallowable cost under the agreement.

List all equipment that will be leased, including vehicles.

SUPPLIES:

Show all tangible personal property with a value of less than $5,000 by appropriate category (office supplies, computer software training supplies, etc.) that will be purchased and charged under the agreement. The budget narrative should describe the types of items included in each of the categories and the proposed use.

CONTRACTUAL:

A procurement contract under an award or sub-tier awards for goods or services is considered contractual. Contractual would include, but is not limited to, conference room rentals, speaker‘s fees, per diem and/or travel, security guard services, translation services, accounting services and audits.

Provide the costs of all contracts for services and goods, except for those that below under other categories (such as equipment, supplies, etc.). List all proposed sub-contracts or sub-recipients that are anticipated to carry out the proposed program, i.e., additional personnel, sub-agreements with an implementing partners etc. For each sub-grant or contract, provide a detailed line-item breakdown explaining specific costs and services.

For consultants, the proposed daily rate to be paid as compensation and the number of consultant days that are anticipated to be paid must be shown. A line item for consultant travel costs can be included in this category, if applicable. These agreements are subject to the regulations set forth in 22

CFR 145.

OTHER DIRECT COSTS:

Other direct costs could include participant support costs, program materials, or other small equipment with a value of less than $5,000 used in an office. Further examples include postage, telephone and internet charges, printing and publishing materials, and utilities, space rental, or insurance.

Provide computations for all other costs directly associated with the project. Each item must be listed separately showing an estimated cost.

INDIRECT COSTS:

This category can only be used when the organization has a Negotiated Indirect Cost Agreement negotiated with the U.S. Government. If the organization is requesting indirect cost rates but does not have an approved NICRA, the indirect charges will not be approved. Show the amount of indirect costs and the base amount on which it is determined. A copy of the current Negotiated Indirect Cost Rate Agreement must be submitted for the recipient and sub-recipient(s), if applicable.

ACCOUNTING FOR PROGRAM INCOME

Per 22 CFR 145.25 (b) please note the following guidance concerning use of Program Income:

Program income earned during the project period shall be retained by the recipient and, in accordance with the terms and conditions of the award, shall be used in one or more of the ways listed in the following:

1) Added to funds committed to the project by the Department and recipient and used to further eligible project or program objectives.

2) Used to finance the non-Federal share of the project or program.

3) Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based.

It is emphasized, however, that the above three alternatives are applicable only when the grantee is a non-profit entity. Any grant to a commercial firm must state that the first of the alternatives is not available for program income earned by the grantee. As explained by (GAO noted in its Principles of Federal Appropriations Law at 10-57, that "This approach [option (1)] increases program size. Both OMB and GAO have expressed preference for the deduction method [option (3)] since it results in savings to the federal government and to grantees.")

UNALLOWABLE COSTS:

Please note the following information regarding funding restrictions:

The following cost elements will not be reimbursed and are not allowable in this program:

• Construction projects.

• Direct support or the appearance of direct support for individual or single party electoral campaigns.

• Direct support or the appearance of direct support for any religious organization, to include repair or building of structures used for religious purposes.

• Military or law enforcement assistance of any kind, including weapons buy back or rewards programs.

• Purchase of firearms, ammunition, or removal of unexploded ordnances.

• Police, para-police (i.e., militias, neighborhood watch, security guards) and prison-related projects of any kind. This restriction includes no funding of any secondary need in a law-enforcement organization.

• Payments for any host government, military or civilian government employee salary or pension.

• Duplication of services immediately available through municipal, provincial, or national government.

• Vehicle purchases. Farm equipment, such as small tractors, and transportation costs are allowable expenses.

• Medical and psychological research or clinical studies.

• Funds for market research, advertising (unless public service related to grant program) or other promotional expenses.

• Entertainment, social activities, alcohol, ceremonials, hospitality and activities relating thereto. Meal costs associated with an overall project are allowable (i.e., working meal). Food or refreshment expenses are limited to 10% of the total budget.

• Expenses listed as miscellaneous.

• Expenses made prior to the approval of a proposal or unreasonable expenditures will not be reimbursed.

Assistance will not be given to projects failing to comply with the provisos under the “Global Health Programs” account heading in the SFOAA or SFOAA Section 7018.

APPENDIX B

BUDGET NARRATIVE INSTRUCTIONS

The budget narrative should briefly explain each line item to sufficiently justify each identified cost.

It should include a justification for how the costs in each category are derived.

PERSONNEL:

a. Identify each position and indicate how it will support the project. If not provided in the Budget, indicate the numerical justification for the total cost.

For example, Project Manager – This individual is responsible for the overall management of the project. He/she insures compliance with all the terms and conditions of the agreement including implementation, program and financial reporting. $40,000/year x 10% of time = $4,000.

FRINGE BENEFITS:

a. If an established NICRA includes a rate for Fringe Benefits, please ensure that you utilize and/or adjust the rate appropriately.

b. If the Fringe Benefit rate is not included in the NICRA, please provide a copy of the company policy and/or rates (as a percentage) that are being charged per category of benefits.

TRAVEL:

a. All Headquarters and/or project employees’ travel must be identified via mode of travel, departure and arrival city, purpose, unit of measurement, and duration of trip. Also include a description of the purpose of the travel and how the travel relates to the project. Please note that the movement of project participants and supplies is a separate transportation line item.

For example, 2 in-country trips via air transportation will be conducted to implement workshops and training sessions. Roundtrip airfare from Kinshasa to Goma for 2 employees is anticipated. Each trip will include 3 days of per diem per employee.

In-country Airfare – 2 trips x 2 employees x $200 = $800 Lodging – 2 trips x 2 employees x 3 days x $100/day = $1,200 Per diem – 2 trips x 2 employees x 3 days x $57 = $684

EQUIPMENT:

a. Include a detailed listing of all non-expendable equipment anticipated to be purchased for program activities including justification.

SUPPLIES:

Specifically describe general categories of supplies and their direct use for the project.

General Office supplies include the following items: pens; pencils; notebooks; printer paper; ink cartridges etc.

12 months x $55/month = $660

Due to the opening of a new project office to support Sector “X” activities, project supplies include the following items: 2 laptop computers, 3 desktop computers, 2 printers etc.

2 laptop computers x $600 = $1,200 3 desktop computers x $800 = $2,400 2 printers x $300 = $600

CONTRACTUAL:

Describe each contractual or consultant cost and outline the necessity of each for the project.

ABC Organization will serve as a partner to assist with implementing Sector “X” activities; $9,000 Detailed Budget is attached.

XYZ Organization will provide IT consulting services via a contract; $4,000 Detailed Budget is attached.

Identify consultants separately from other permanent staff. If possible, include anticipated position title(s), the proposed daily rate to be paid as compensation, and the number of consultant days that are anticipated.

OTHER DIRECT COSTS:

The following direct project expenses are related to the implementation of all project activity and are proportionate based on actual use.

Rent of Office space - 12 months x $300 = $3,600 Utilities - 12 months x $100 = $1,200 Printing/Photocopying costs – 12 months x $110 = $1320 Communication (phone, fax, internet) = 12 months x $125 = $1,500

INDIRECT COSTS:

Show the amount of indirect costs and the base amount on which it is determined. A copy of the current Negotiated Indirect Cost Rate Agreement must be submitted for recipient and sub-recipient(s). S/GWI does not recognize indirect costs unless they have been determined by an audit and formally approved by the U.S. Government cognizant agency.