FY 2024 Budget Narrative Template and Instructions.docx

RECOMMENDED BUDGET NARRATIVE TEMPLATE

Note: Instructions and examples should be deleted from your submission.

Instructions The budget narrative explains the costs that PRM expects an organization to include in each budget category when estimating expenses for a proposed program. This applies whether PRM fully funds the program, or it is jointly funded with multiple donors.

Costs listed in the Budget Detail and Budget Narrative documents must match. For multi-year proposals, the budget narrative must include the following for each year and be in a single document. Additional information, including more detailed descriptions and examples of budget categories, is available in the NGO Guidelines.

Personnel:

Year 1:

Identify each position, base salary, and the time each person will spend on the project. Indicate how it supports the program and/or sector(s). If not provided in the budget detail, include the numerical justification for the total cost.

For example:

Director of Assistance Programs – This individual manages the overall program. They ensure compliance with all terms and conditions of the agreement including implementation, program, and financial reporting. $85,000/year x 10% of time = $8,500.

If possible, include anticipated position titles, the proposed daily rate for compensation, and the number of consultant days anticipated.

Years 2/3 (as applicable):

(Insert as applicable) Fringe Benefits:

Year 1:

Explain your organization’s policy on fringe benefits and how it will be applied to this award. Explain the basis and provide a breakdown of the components of the fringe benefits for all staff (local and international). If an established Negotiated Indirect Cost Rate Agreement (NICRA) includes a fringe benefit rate, use and adjust the rate as needed. If the NICRA does not include a fringe benefit rate, provide the rates (as a percentage) charged per category of benefits.

For example:

Fringe benefits for HQ staff are calculated at 20 percent of total salaries per personnel policies. This includes 8 percent social security contributions, 4 percent pension benefits, 3 percent severance, 4 percent medical insurance, and 2.5 percent other taxes.

Fringe benefits for national staff are calculated at 17 percent of total salaries per local labor laws, and include 5 percent housing allowance, 3 percent transportation allowance, and 4 percent health benefits.

Years 2/3 (as applicable):

(Insert as applicable) Travel:

Year 1:

Identify all headquarters and program employees’ travel by mode of travel, departure and arrival city, purpose, unit of measurement, and duration of trip. Note that the movement of program participants and supplies is a separate transportation line item.

For example:

10 in-country trips via air transportation will be conducted to implement workshops and training sessions. Roundtrip airfare from Kinshasa to Goma for 5 employees is anticipated. Each trip will include 5 days of per diem per employee.

In-country Airfare – 10 trips x 5 employees x $200 = $10,000 Lodging - 10 trips x 5 employees x 5 days x $161/day = $40,250 Per diem - 10 trips x 5 employees x 5 days x $57 = $14,250 Years 2/3 (as applicable):

(Insert as applicable) Equipment:

Year 1:

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

For example:

· Land Rover – Due to the challenging road conditions, inclement weather, terrain conditions, and geographical location(s) of program sites, it is deemed reasonable and necessary to purchase a new vehicle. Vehicle x 1 quantity = $40,000.

Years 2/3 (as applicable):

(Insert as applicable) Supplies:

Year 1:

Include a listing of all proposed expendable supplies anticipated to be purchased for program activities and justification. General Office supplies include the following items: pens, pencils, notebooks, printer paper, ink cartridges, etc.

For example:

Due to the opening of a new program office to support Sector “X” activities, program supplies include the following items: 2 laptop computers, 3 desktop computers, 2 printers, etc. 12 months x $100/month x 3 program offices = $3,600 2 laptop computers x $700 = $1,400 3 desktop computers x $1,200 = $3,600 2 printers x $400 = $800 Years 2/3 (as applicable):

(Insert as applicable) Contractual:

Year 1:

· ABC Organization will serve as a partner to assist with implementing sector “X” activities. $75,000 detailed budget is attached.

· XYZ Organization will provide security services via a contract. $50,000 detailed budget is attached.

Years 2/3 (as applicable):

(Insert as applicable) Construction:

Year 1:

Generally, PRM limits Federal assistance awards for new construction programs and significant construction activities, in line with Department-wide policy. However, an applicant may request consideration for minor construction activities, such as renovating or rehabilitating existing permanent structures, with a detailed description of the activities and related statements of work. Exclude the construction, renovation, or rehabilitation of temporary structures from this section.

Detailed budgets should include a description of the activity.

For example:

Construction of latrines: This involves building both a male and female latrine block to provide a clean and safe sanitation space for staff and clients.

· $3,169/unit x 100% x 2 units = $3,328

· Construction – Staff accommodation: This supports building staff accommodation within the refugee settlement. The accommodation will improve staff wellness and welfare by reducing daily travel time to and from the town to the settlement.

· $80,000/unit x 100% x 1 unit = $80,000 Years 2/3 (as applicable):

(Insert as applicable) Other Direct Costs:

Year 1:

The following direct program expenses are related to the implementation of all sector activities and are proportionate based on actual use.

For example:

· Rent of Office space in three locations – 12 months x 3 offices x $400 = $14,400

· Utilities – 12 months x 3 offices x $100 = $3,600

· Postage – 12 months x 3 offices x $50 = $1,800

· Courier – 25 trips x 2 offices x $25 = $1,250

· Communication (phone, fax, internet) = 12 months x 3 offices x $200 = $7,200

· Transportation cost of medical supplies via ground freight –

· 2 trips x $3,000 = $6,000Years Years 2/3 (as applicable):

(Insert as applicable) Indirect Costs:

Year 1:

Show the amount of indirect costs and the base amount used to determine it. Submit a copy of the most current NICRA for the recipient and sub-recipient(s), if applicable. According to guidance from the United States Office of Management and Budget (OMB), applicants without a NICRA may choose to charge a de minimis rate of 15 percent of Modified Total Direct Costs (MTDC) which can be used indefinitely (2 CFR 200, Subpart E, Section 414 Indirect (F&A) Costs). Provide a de minimis rate calculation if you choose to charge the de minimis rate. Any rate below 15percent is acceptable if voluntarily offered by the applicant.

Years 2/3 (as applicable):

(Insert as applicable)