Budget Narrative Instructions for DWGs.pdf

General Instructions for the Completion of a Budget Narrative

National Dislocated Worker Grants

When developing the Budget Narrative, please ensure the following:

• Provide a narrative explanation for each line item on the SF‐424A, which includes an itemization of the component costs adding up to the total projected cost for each line item. The calculations provided in the Budget Narrative must be accurate, and the line item cost projections in the narrative must match the associated cost identified on the SF‐424A.

• For grant modifications requesting a budget realignment, the Budget Narrative must address the reason for the change in each affected line item.

• Use the following instructions to develop the Budget Narrative.

Personnel – List all staff positions by title. For each staff position, identify the annual salary, the percentage of time devoted to the project, the salary amount funded by the grant, and the total cost for the full period of performance.

Fringe Benefits – Provide the overall fringe benefit percentage which reflects the recipient’s organizational fringe. Also list the component benefits, such as health insurance, FICA, retirement, etc. Provide the fringe benefit calculation for each staff position listed under the Personnel line item.

Travel – Specify the type and purpose of the travel, the number of travelers, approximate mileage, per diem rates, estimated number of trips, and other associated travel costs.

Equipment – Identify each item of equipment to be purchased which has an estimated acquisition cost of $5,000 or more per unit and a useful lifetime of more than one year. List the quantity and unit cost per item. Items with a unit cost of less than $5,000 are supplies.

Supplies – Supplies include all tangible personal property other than “equipment.” Identify supply categories (e.g. office supplies, cell phones, personal tools for disaster clean‐up, etc.). List the cost associated with each supply category.

Contractual –

• List each project operator provisioning WIOA services and the funding allocation made to each; and,

• identify any additional contractual entities, the amount allocated, and the purpose.

Construction – Construction costs are not allowed and this line must be left as zero. Minor alterations to adjust an existing space for grant activities (such as a classroom alteration) may be allowable.

Other – List each item in sufficient detail for DOL to determine whether the costs are reasonable or allowable. Costs included under Other should not fit into any other line item category.

Indirect Charges – If charging indirect costs to the grant, this line item must be populated. Include the current approved Negotiated Indirect Cost Rate Agreement or Cost Allocation Plan, signed by the Federal cognizant agency, as an attachment to the grant application.