Pre-Award Guide.pdf

Pre-Award Guide for Applicants

USDA Forest Service Office of Grants & Agreements

Access Storefront

COMMUNITY WILDFIRE DEFENSE GRANT (CWDG)

FUNDING OPPORTUNTIES:

USDA-FS-2022-CWDG-NEMW

USDA-FS-2022-CWDG-SGSF

USDA-FS-2022-CWDG-CWSF

USDA-FS-2022-CWDG-TRIBES

This guide addresses high level and routine components of a grant application. It does not replace requirements outlined in the Notice of Funding Opportunity or Detailed Instructions required for any funding opportunity. The guide targets new or infrequent applicants to the USDA Forest Service but is available to all applicants for use. For general assistance or inquiries on the CWDG funding opportunity, contact Access StoreFront at accessga@usda.gov.

https://www.fs.usda.gov/working-with-us/grants https://www.fs.usda.gov/working-with-us/grants https://www.fs.usda.gov/managing-land/fire/grants https://www.fs.usda.gov/sites/default/files/2022-08/Instructions-NEMW-CWDG-NOFO.pdf https://www.fs.usda.gov/sites/default/files/2022-08/Instruction-SGSF-CWDG-NOFO.pdf https://www.fs.usda.gov/sites/default/files/2022-08/Instruction-CWSF-CWDG-NOFO.pdf https://www.fs.usda.gov/sites/default/files/2022-08/Instruction-TRIBES-CWDG-NOFO.pdf

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Table of Contents

Competitive Application

General Tips

Sections of a Grant Application

Project Introduction

Project Justification

Project Objectives

Project Timeline/Schedule

Project Budget

The Importance of Additional Support

Engage Community Support

Assemble a Grant Writing Team

Grant Application Checklist

System for Award Management (SAM)

General

Registration and Validation

Workspace

General

Access and Ownership

Creating a Workspace

Overview Walkthrough

Main Menu

Managing Workspaces

Progress Tracker

Completing the Forms

Submitting Your Application

Budget

Matching/Cost-share

Direct vs. Indirect Cost

NICRA

Financial Capability

Financial Management System Standards

Property Management System Standards

Procurement System Standards and Requirements

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Equipment

Appendix

Financial Capability FS-1500-22

NICRA Instructions & Checklist

Budget and Narrative Sample

Equipment Justification Form FS-1500-34

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Competitive Application

General Tips

Read the entire grant application guide and follow instructions carefully.

• Application requirements vary across programs, so look closely at the Notice of Funding Opportunity (NOFO) for each specific grant program to ensure that you are addressing all the requirements and criteria for the grant program in question.

• Carefully review the scoring criteria and make sure to address each of those criteria in your proposal

• Submit a reasonable budget based on realistic costs. Always double check your budget math. Refer to the Code of Federal Regulations on cost principles when needed: 2 CRF 200 Subpart E.

• Be sure to include any additional forms or attachments that are required. Submit work samples that reflect your ability to carry out the grant project proposed.

• Pay attention to deadlines – these are usually inflexible and if you submit your application past the deadline date, it will not be considered. Try to submit early.

• When writing your proposal, be clear and concise, establish your major points, and avoid unnecessary complexity. These points are the primary items on which the application will be evaluated.

• If provided, use the samples and checklists included in the application.

• Separate fact from opinion.

Sections of a Grant Application

Grant applications are typically comprised of several sections, as outlined below. Know what information you need to include for each section.

Project Introduction

This section is similar to an abstract and is often written after most, if not all, of the proposal is completed. It should clearly explain what you are using funds for and should be written in a way so that any reader can understand quickly and clearly what the project will deliver.

Project Justification

In this section, you should define and explain the problem that your project will attempt to address.

Some questions to answer:

• Why is it critical to address the problem now?

• What plans, studies, and data are available to identify or quantify the need?

• How will the defined population be impacted or different when the project is completed?

• What documented proof/evidence is available to support the need for your project?

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E

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• Who will your project serve?

• Are there any special circumstances to consider about your defined area/population?

• What are your organization’s needs?

Project Objectives

The objectives of your project should mirror what you are using the grant funds for in your project. Note, there is a difference between goals and objectives – goals are not measurable, whereas objectives are. Objectives are performance-related, so make sure your project objectives are realistic – they will become the criteria your project is evaluated by if you are selected for funding.

Project Timeline/Schedule

In this section, you should discuss:

• How the project will be managed by your organization;

• How project services will be delivered, and

• Who will be in charge.

Include the planned start date, activity, responsible party, completion date, milestones, and deliverables/products. You should only cover those steps/tasks that will be supported by grant funding. The schedule should be detailed and clear enough that it can give the reviewer a general understanding of what the project involves.

Project Budget

• Budget Narrative vs Budget Forms. Your budget narrative and your budget provide similar information in two different, but important ways. One lists the expenses and income while the other is a narrative description that details what is found in the budget form. The Budget narrative gives context to the information found in the form.

• Costs and project elements must be well-defined—explain what costs are associated with each element and what portion of the costs will be covered by each of the funding sources.

• Check the application directions or ask the grant coordinator to determine how the budget should be organized (usually in columnar form according to general accounting principles).

• Include all costs associated with capital and non-capital expenditures and all assumed in-kind services, volunteer efforts, and indirect costs.

• Only include items covered by the grant funds—do not include a miscellaneous or contingency category.

• Don’t forget that this project will take place in the future, so budget numbers should account for inflation at the time of expenditure.

• Like the project timeline, the project budget should provide enough detail that the reviewer can gain a general understanding of what the project entails.

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The Importance of Additional Support

Engage Community Support

Community support is vital for a successful project. Many grant programs require a local funding match and/or community engagement in the project’s design and execution. The stronger the local support for a project, the easier it will be to secure matching funds, letters of support, and in-kind donations. Once the proposal summary is developed, seek out academic, political, and professional individuals or organizations, as well as community members or groups, that may be interested in your proposal. Obtain their support in writing, and then involve these individuals and organizations in project input.

Contact the grant coordinator as well as your district/state/regional representative (depending on the funding source). They can help you determine how well the grant program will work for your project and can provide you with technical assistance and additional guidance in the application process. Some competitions provide pre-proposal/application assistance. This is also specified in the announcement. Subscribe to stay updated on the status of your application.

Assemble a Grant Writing Team

While this is not always possible, it can be helpful to assemble a team to assist with grant writing.

Examples of possible team members include:

• Senior-level management (support and sign grant applications)

• The project manager (who is the primary source of project-related information)

• A grant writer

• An editor (otherwise unaffiliated with the project so that they can provide an independent assessment of how well the application presents the required information); and

• Finance expert(s) (to help develop a good budget).

Depending on the size, capacity, and structure of your organization, it may not be feasible to assemble a team dedicated to grant application writing. It is not a requirement for a successful grant application but can help ease the process of the grant application preparation, content, submission and the like.

Grant Application Checklist

Use the checklist below to make sure your application is well written, contains all the necessary supporting documents, and meets the grant criteria. See if you answer ‘YES’ to everything above.

However, if you have answered ‘NO’ to any items, you should follow up on these missing items before submitting your application.

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1.Guidelines and documents:

▢ YES ▢ NO – I have read all documents and know the aim of the grant program, eligibility criteria, and closing date and time.

2. Application form:

▢ YES ▢ NO – I have used the correct application form and followed the process outlined in the grant guidelines.

3.Checked my idea:

▢ YES ▢ NO – My proposal is strong and aligns with the aim of the grant.

4. Considered my audience:

▢ YES ▢ NO – I have written my grant application assuming the assessor knows nothing about my business/organization or the project.

5. Language and tone:

▢ YES ▢ NO – I have used simple, positive business language (and included no jargon, vague, speculative, or negative wording).

6. Concise:

▢ YES ▢ NO – My answers are concise and within the required word count.

7. Targeted answers:

▢ YES ▢ NO – I have not duplicated my answers and all sections have been completed.

8. Budget:

▢ YES ▢ NO – I have outlined my project budget as required in the guidelines.

9. Headings:

▢ YES ▢ NO – I’ve included useful headings so readers can skim the content.

10. Keywords:

▢ YES ▢ NO – I’ve included the same keywords used as in the grant guidelines and assessment criteria.

11. Formatting:

▢ YES ▢ NO – The consistent formatting applied and answers are in the same sequence as the application form (if applicable).

12. Reviewed:

▢ YES ▢ NO – I have had my application thoroughly reviewed by 2 or more people.

13. Proofread:

▢ YES ▢ NO – I have had my application proofread by 2 or more people.

14. Final check:

▢ YES ▢ NO – All information has been provided to support the application as outlined in the guidelines.

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System for Award Management (SAM)

General

Sam.gov is an official website for U.S government. All entities must register with SAM in order to conduct business with the federal government. On April 4, 2022, the unique entity identifier used across the federal government changed from the DUNS Number to the Unique Entity ID (UEI). Once you go to this website for the first time, you will see a window pops up below:

Additionally, you will see all announcements and alerts posted on its homepage. It is important to review them. For example, the latest alert below addresses the delay of validation applicants’ information. Therefore, it is recommended that you register very early on to avoid delays. This link provides FAQ to validating your entity.

https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=7bb8810ddba05990060d5425f3961912&spa=1

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Registration and Validation

• Register/Renew your registration early. You will need to register SAM to do business with the U.S federal government. Every year you will need to update and renew your registration. If your SAM registration expires, there will be a delay in receiving funding or adding new funding through a modification.

• Gather Up Your Basic Information. Before you get started with SAM registration, you will need to know some important information. For instance, you will need your company tax ID number, which should be listed on tax forms. You also will need the routing number and account number for your business bank account, as payments to you will be made through SAM so this info is stored in your SAM account. You also might need to know your North American Industry Classification System Codes if you will be applying for Contracting. These codes identify the specific goods or services (or both) that your company provides.

• Tax ID and Physical Address. Make sure to use the Tax ID number that you have with the federal government. Use the same name as you register with the Internal Revenue Service (IRS). Once you registered, you can add another name as “doing business as” inside of SAM.

Use the physical addresses to register for your UEI and have address proof ready to show (i.e., lease) if being requested by SAM.gov for validation.

• Entity Registration Checklist: See checklist link to help you prepare your registration. If you are applying for Financial Assistance award only, click on the 2nd link which will get you straight to the checklist.

• Socio-Economic Entity: Under General information, make sure that you click all that applies to your organization, especially if you qualify under socio-economic categories, Native-https://sam.gov/content/entity-registration

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American entity, or Disadvantaged business category. This is important as some grants have set asides if you qualify under this category. Visit https://www.sba.gov/ to learn more about these programs.

• Two or more administrators for your organization. It is recommended to have multiple people who can renew and update your SAM registration. If you lose access to the email that has the access to SAM, you will have to create a new account and submit a notarized letter to SAM granting you access again. If you leave the organization, the new person will have to go through the same process of submitting a notarized letter and gaining access to the organization’s SAM. This can lead to delays in receiving your funding related to a grant or agreement. A backup person from your organization can go into SAM and give that access immediately removing the delay.

• Review twice! Double check everything and make sure it matches your documentation exactly when setting your SAM account up for the first time or for SAM recertification process. Any information entered incorrectly will create a delay in the process. During times of high volume, it may add several weeks to the time it takes to register your entity.

https://www.sba.gov/

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Workspace

When applying on grants.gov, you will need a “Workspace”. Go here for a Workspace overview. For grants.gov online help, go here and you can search for specific areas for assistance. For more information on CWDG NOFO, please visit Forest Service website here and on grants.gov.

General

• Some agencies may have other submission portal besides grants.gov; make sure to read carefully in the NOFO to ensure you have the correct submission portal.

• Files cannot exceed 200MB.

• Do not use the Adobe attachment function (the paper clip in the taskbar) to upload files.

You must use the in-form “Add Attachment” option. Not using the in-form options will cause errors.

• Disable pop-up blockers for the Grants.gov site. Some confirmation boxes appear in pop-up windows.

• Available and required forms vary by FOA and agency. Always read the application instructions carefully.

• Like the Adobe Legacy forms, completing the SF424 R&R form will populate some fields in the rest of the package.

• Individual Applicants: If you are registered in Grants.gov and only have an individual profile (i.e., not applying on behalf of an organization), the Applicant Management section does not apply to you. Review the Grants.gov Variations for Individual Applicants help article for more information.

Access and Ownership

• You can only create a workspace if you have a Grants.gov account with the “Manage Workspace” role.

• The person who creates the workspace is workspace owner and can grant other users access to the workspace.

• You do NOT need an account to search for and download funding opportunities.

Creating a Workspace

• You must have a Grants.gov account to create and be added as a participant on workspaces. Get set up here:

https://www.grants.gov/web/grants/applicants/registration.html.

https://www.grants.gov/applicants/workspace-overview.html https://www.grants.gov/help/html/help/index.htm#t=GetStarted%2FGetStarte https://www.fs.usda.gov/managing-land/fire/grants https://apply07.grants.gov/help/html/help/Register/GrantsgovVariationsForIndividualApplicants.htm https://apply07.grants.gov/help/html/help/Register/GrantsgovVariationsForIndividualApplicants.htm https://www.grants.gov/web/grants/applicants/registration.html

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• You need an ORGANIZATION APPLICANT account.

• How to register as an organization: Organization Registration | GRANTS.GOV

• You can complete forms online (web forms) or download forms to complete offline and upload later.

• You can run a check on each page for errors.

• Each question/section links to help documents for that question.

Overview Walkthrough

Please note below is not intended to be a step-by- step walkthrough. It highlights a general overview of creating workspace and provide helpful tips along the way. Please visit grants.gov for Workspace instructions.

Main Menu

You must be logged in to Grants.gov to create a workspace. After you log in you, click on “Applicants” tab Apply Now.

• Select “Create Workspace” to create a new workspace OR “Manage Workspace” to access an existing workspace.

https://www.grants.gov/web/grants/applicants/organization-registration.html https://www.grants.gov/web/grants/applicants/workspace-overview.html

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• Enter the Notice of Funding Opportunity (NOFO) number or the package ID: For example, USDA- FS-2022-CWDG-NEMW or USDA-FS-2022-CWDG-TRIBES. All NOFO have package ID that are available when you search Grants.gov for opportunities.

• Enter an Application Filing Name. This is a required field, limited to 240 characters. This does not need to be the grant title, but it cannot be left blank. Suggestion: Keep it brief and descriptive, so that it is easier to locate later.

• Click the “Create Workspace” button to launch the Manage Workspace Page.

Managing Workspaces

Note the plural – this relates to all your created workspaces, not a specific one. The Manage Workspace page is the hub of all actions and activity for the workspace. You will download and select forms to complete, grant workspace access to the other users (participants), preview and validate the application from this screen

Search by any of the criteria below to find workspaces where you are the workspace owner or a participant. The example below is by “last activity date”. Select the form you want to access from the Actions column (last on the right).

• Copy: Use to copy the workspace to use for another application.

• Manage: Use to open an “In Progress” workspace.

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Progress Tracker

The top section of the Manage Workspace screen has a helpful bar that tracks your progress.

• Green check: Indicates what you’ve completed so far.

• Red ellipses: Indicates your current progress—where you are in the completion and submission process.

• Blue sections: Indicates things that you still need to complete.

• Header/Opportunity Information. Beneath the tracker bar is a section with the information about the NOFO (such as the title, opportunity number and dates), it shows your unique workspace ID (WS00948906) and identifies the workspace owner.

• Navigation Tabs. The available tabs will vary by agency. For most submissions, you’ll see

FORMS, VIEW APPLICATION, ATTACHMENTS, PARTICIPANTS, ACTIVITY, DETAILS.

• Application Package Forms. The rest of the page is where you will add forms to and complete the forms for the application. A series of boxes on the left lists the forms, which you can check or uncheck to include or remove them from the proposal.

Completing the Forms

The process of completing the workspace forms is not significantly different from completing the Legacy Adobe package. Below is information to help you navigate these pages and a few things that you need to be aware of.

• Include In Package: the first column has a list of boxes you can check or uncheck to include or remove an optional form set from the application.

• Form Name: Clicking on the Form Name, opens a preview window of the form.

• Requirement: Mandatory forms are listed first, followed by the optional forms.

• Form Status:

[---]: A form that has not been accessed yet.

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[In Progress]: A form that has been accessed, but the data entered does not pass the validation check.

[Passed]: A completed form that has completed (passed) they system validation check.

Last Update Date/Time: This shows the last time a section was updated.

Locked By: This is blank unless the listed user has locked the form, in which case it will show who locked it.

Actions: you will select from several different options to enter information into your application.

• Lock: use this to prevent a form from being updated while someone is using it. The system prompts you to lock or “Unlock” the form.

• Download: This allows to you download a PDF of the form to your workstation for completion offline at your convenience or send to someone else to complete. After completing a form offline, use the “Upload” function to add the completed form to the application. These forms are similar to the Legacy Adobe forms.

• Reuse: You’ll be able to use this option once you have completed a similar form in another workspace. You can reuse the information from an existing form in a previous workspace. You are asked to confirm that you want to reuse a form, and then are taken to the “Reuse Workspace Form” to search for the form you want to reuse. Not available for all forms. The “Reuse” search results show the application filing name, workspace status, FOA, the date of the last update and a preview option.

Once you select the form to reuse, it is imported to your current workspace, replacing the blank form with and it will update that form’s status to PASSED.

Webform: This is an enhanced online interface. Use the webform option if you need to tweak the information in the form.

• Hovering over a field will give you information or instructions about completing that field.

• If enter invalid information in a field, it is highlighted yellow and a red error notation appears.

• You can check for errors as you work. The errors appear at the top of the page with a link to the field that has an error.

• There is an auto save feature (every five minutes), but you should save manually after updating a page.

• When someone is editing a form, it is locked to other users. When you exit a form the system asks if you want to unlock the form (releasing it for another use to edit) or keep the form locked (if you still need to make changes and do not want someone to undo what you’ve done.) when a form is locked, the Locked by field will let you know who to contact if you need to make changes.

• When uploading an attachment, Workspace scans for viruses and file name conventions.

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Submitting Your Application

• Only the AOR (Authorized Organization Representative) can submit applications.

Contact your organization for a list of your AORs. If you are an individual, see applicant registration. To learn more about Grants.gov roles & privileges, visit here.

• When you click “Sign and Submit,” you are prompted for your Grants.gov password, not your Commons password. Upon submission, you’ll receive the Grants.gov confirmation emails, as you would for the Legacy packages.

• After submitting, all edit options are disabled.

• The Re-open option is available for the workspace owner and the AOR after submission but should not be used unless by request of the AOR.

• Consult your AOR official who will work with you on the Changed/Corrected application about what steps need to be taken in Workspace.

• Each time you complete a form, check it for errors and save BEFORE closing it.

Participants Tab: From this tab, you will be able to: (1) add Participants to your workspace, (2) remove users from your workspace, (3) manage what areas of your workspaces, participants can access, and (4) transfer workspace ownership to other users with the workspace owner role.

• Add participant by username or email address.

• Add participant from workspace organization by their first and last name.

• Adding a participant, grants them access to All Forms including Budget, by default. You can limit access to Non-Budget forms and Sub-form(s) only. If you choose to limit someone’s access to Sub-forms, the available Sub-forms options are shown.

• NOTE: Both the requester and the user being added as a participants receive an email confirmation once a new user is added to the workspace.

https://www.grants.gov/web/grants/applicants/registration.html https://www.grants.gov/help/html/help/index.htm?callingApp=custom#t=Applicants%2FManagement%2FViewRolePrivileges.htm

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Activity tab: This lists every action taken on the form by every user.

Details tab: you can track the submission. This will be blank until you have submitted the application.

Preview Grantor Validation: You can run agency validation checks. It sends the workspace to the agency system to confirm whether the application meets validation checks or not. The page doesn’t automatically update. Refresh the page to get the results of the validation check in a pop-up window.

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Budget

As you begin to develop a budget for your grant application and input the relevant costs down on paper, many questions may arise. Your best resources for answering these questions are the grants or sponsored programs office within your own institution, your administrative officials, and/or your peers.

If you are an individual applicant, there are online resources to guide you while you are developing your budget. If you have cost-related questions (i.e., what is allowable), Uniform Guidance is a "government-wide framework for grants management". It is an authoritative set of rules and requirements for Federal awards. Visit Code of Federal Regulations (CFR) – Chapter II, Part 200 covers Grants and Agreements. You will see Subpart A-F; Subpart E addresses cost principles that might be beneficial to review while drafting your budget proposal.

Matching/Cost-share

There are two kinds of matching/cost-share: cash and third-party in-kind.

1. Cash: includes cash spent for project-related costs. The allowable cash match must include costs that are necessary, reasonable, and allowable under the federal program.

Matching and cost share funds have the same restrictions as federal funds. These funds must follow the same allowable and unallowable guidelines in their federal award. If, for example, a conference is unallowable under the grant award that has matching requirements, then grantees would not be able to use the matching funds instead. The expense must be allowable with federal funds for it to be allowable with matching or cost share funds.

2. Third Party In-Kind: this includes, but is not limited to, the valuation of non-cash contributions provided by a third party. An in-kind match may be in the form of services, supplies, real property, and equipment. The value of the service may be used for the matching requirements, if the services are necessary, reasonable, and allowable under that federal program. Grantees are allowed to use unrecovered indirect costs for matching or cost sharing requirements; however, this requires prior approval of the federal awarding agency.

For third-party in-kind matching—such as supplies, equipment, or space—the value must not exceed the fair market value at the time of the donation.

For volunteer services, the rates must be consistent with the rates normally paid for similar work in the organization. If an employee from another organization conducts services free of charge, the services should be valued at that employee's regular rate of pay, in addition to their fringe benefits and allowable indirect costs. There are online resources to help you determine the value of volunteer time, such as:

https://independentsector.org/resource/value-of-volunteer-time/. It is important to maintain a record for tracking and reporting volunteer time and services.

Grantees are required to maintain records, which clearly show the source, amount, and timing for all matched contributions. While grantees are not required to submit their supporting documentation to the Department of Justice, their records must be available in the event of an audit or site visit.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E?toc=1 https://independentsector.org/resource/value-of-volunteer-time/

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Direct vs. Indirect Cost

Understanding direct costs and indirect costs is important for properly tracking your organization’s expenses. Knowing the difference between the types of costs will help you to prepare a competitive budget proposal and you will have a better grasp on your accounting, thus better equipped to plan.

In cases of government grants or other forms of external funding, identifying direct and indirect costs becomes extra important. Grant rules are often strict about what constitutes a direct or an indirect cost and may allocate a specific amount of funding to each classification.

Often, funding for a specific project will largely support direct costs. Certain government agencies might allow you to explain why indirect costs should be funded, too, but the decision to grant funding is at their discretion.

When a company accepts government funds, the funding agency may also have several strict mandates in place regarding the maximum indirect cost rate and which expenses qualify as indirect costs.

Direct Costs

Indirect Costs

If the cost can be identified specifically with a particular cost objective such as a grant, contract, project, function, or activity, then it is a direct cost

Costs of an organization that cannot readily be assigned to a particular project but are necessary to the operation of the organization and the performance of the project

Examples: raw material, direct labor, fuel

Examples: operating and maintaining facilities, depreciation, and administrative salaries

Highly variable mainly due to market factors

Relatively stable

Direct costs affect the products/services prices, and are thus calculated per project or per item

Indirect costs affect the whole business and are thus calculated monthly or annually

Contractual costs are those services carried out by an individual or organization, other than the applicant, in the form of a procurement relationship. The costs a contractor, including an individual consultant, incurs for travel are included in the contractual line item of the budget.

The budget justification should address each of major cost categories (salaries, fringe benefits, equipment, travel, supplies, other direct costs, and indirect costs), as well as any additional categories required by the sponsor.

Fringe benefits include but are not limited to the cost of leave, employee insurance, pensions, and unemployment benefit plans. The budget narrative should identify the applicant's fringe benefit rate.

The applicant should not combine the fringe benefit costs with direct salaries and wages in the personnel category.

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NICRA

To be reimbursed for indirect costs, you must first establish an appropriate negotiated indirect cost rate agreement (NICRA). To do this, prepare an indirect cost rate proposal and submit it to the cognizant federal agency. The cognizant federal agency is generally determined based on the preponderance of federal dollars you receive.

The term “de minimis rate” refers to the rate that is available to certain recipients (and certain subrecipients, which is 10% of “modified total direct costs” (MTDC). This is specifically defined in 2 CFR 200.68. This definition must be followed. If your indirect cost rate is over 10%, you will need a NICRA with your cognizant agency, which is the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans and indirect cost proposals on behalf of all Federal agencies.

All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award)

If the Forest Service (FS) is your cognizant Agency and you need to obtain a NICRA, please visit FS Resource Audit branch (RAB) Audit and Assurance Staff | US Forest Service (usda.gov). Refer to the Appendix for the FS NICRA application that you may be required to submit. Please contact the RAB before filling out the form below.

Financial Capability

This document does not address all possible circumstances that need to be considered when establishing internal controls or assessing risk. Each applicant is responsible for reviewing their practices and processes to determine where risks exist and where and how controls can be established to mitigate them, and also complying with possible audits.

Grantees need adequate financial management systems to ensure that grants are used for intended purposes and in accordance with regulations. A capability assessment ensures that an applicant has adequate financial systems and enables awarding agencies to decide whether to award the grant, and whether conditions should be added. Assessments of grant applicant capability provide management with confidence that grantees have, or will have, the required financial systems and allow management to plan the level of grantee oversight.

The Forest Service policy requires a pre-award evaluation of the administrative and programmatic capabilities of applicants. Applicants are required to answer questions regarding financial management systems, property, and procurement standards, assigned personnel, and travel policies. Below are the 3 areas to be evaluated. Refer to the Appendix for the Forest Service Form 1500-22 Financial Capability Questionnaire.

Financial Management System Standards

Recipients are required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR Part 200.302, as applicable. The standards and requirements for a financial management system are essential to the grant relationship.

Recipients must have in place accounting and internal control systems that provide for appropriate monitoring of grant accounts to ensure that obligations and expenditures are reasonable, allocable, and allowable. Internal controls in accounting are procedures that are put in place within an https://www.fs.usda.gov/about-agency/audit-assurance https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.302

20 | P a g e organization to ensure business is carried out in an orderly, effective, and accurate manner. In addition, the systems must be able to identify large unobligated balances, accelerated expenditures, inappropriate cost transfers, and other inappropriate obligation and expenditure of funds.

Property Management System Standards

Generally, recipients may use their own property management policies and procedures for property purchased, constructed, or fabricated as a direct cost provided they observe the regulatory requirements in 2 CFR Parts 200.310 through 200.316, as applicable. State governments will use, manage, and dispose of equipment acquired under a grant in accordance with state laws and procedures as specified in.

Procurement System Standards and Requirements

Recipients may acquire a variety of goods or services in connection with a grant-supported project, ranging from those that are routinely purchased goods or services to those that involve substantive programmatic work. States may follow the same policies and procedures they use for procurements from non-Federal funds and ensure that every purchase order or other contract includes any clauses required by 2 CFR Part 200.327. All other recipients must follow the requirements in 2 CFR Part 200.317 through 200.327 and the purchase of goods or services through contracts under grants, as applicable.

Equipment

Equipment can only be purchased with Federal funds with written approval of Federal Awarding agency (2 CFR 200.439). Instructions for how to handle equipment purchased can be found in 2 CFR

200.313. In addition, review the NOFO carefully to address any additional equipment requirements from the awarding agency. Below is a synopsis to give you a broad understanding, it is recommended to carefully review the entire equipment section referenced in 2 CFR 200.

• Must get written prior approval to purchase

• The Title will Vest upon acquisition with the Non-Federal entity

• The equipment must be properly used and disposed of.

• Equipment must be used in the program or project for which it was acquired.

• Very Detailed records must be kept of the Equipment and damage, or loss must be investigated.

• Must be maintained

• When no longer needed the equipment must be disposed of according to awarding agency.

See Appendix for the Forest Service Equipment Justification & Certification Statement form.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.310 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.316 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.327 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.317 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.317 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.327 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRed1f39f9b3d4e72/section-200.439 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.313 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.313

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Appendix

Financial Capability FS-1500-22

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NICRA Instructions & Checklist

U.S. Forest Service Albuquerque Service Center

Resource Audit Branch

Indirect Cost Proposal Guidance and Checklist For Non-profit Entities

Subject to 2 CFR Part 200 (Formerly 2 CFR Part 230)

Proposals may be based on prior year actual data, actual data with forward- adjustments or any combination of information.

All documentation requirements described below must be met.

Please E-mail the proposal, adjoining schedules, financial statements (or IRS Form 990) and General Ledger (GL) to rab@fs.fed.us. Since we review proposals electronically, Microsoft Excel is the preferred format for submitting proposal calculations and schedules.

If the GL files and other schedules are too large to submit electronically via e- mail, you may wish to send a CD ROM or other compressed file to:

U.S. Forest Service Albuquerque Service Center

Resource Audit Branch ATTN: Indirect Rates 101B Sun Avenue NE Albuquerque, NM 87109

Our fax number is: (866) 436-5939

Provide a cover letter stating the purpose of the proposal and the proposed rate or rates, as applicable.

Were the agency’s books and records audited in accordance with OMB A-133 or AICPA standards?

If so, please submit a copy of the auditor’s report or the grantee internet site where it can be located.

If no audit was performed, please provide copies of IRS Form 990 instead.

The proposed indirect cost pool and allocation base must reconcile to the financial statements (or IRS Form 990) and general ledger (G/L):

Provide detailed schedules to tie financial statement amounts (or IRS Form 990) and GL expense accounts to the proposed indirect costs pool and base.

The allocation base must be complete (i.e., does it include all activities that benefit from the indirect cost pool?)

The allocation base must be fully explained (e.g., direct labor with or without direct fringe mailto:rab@fs.fed.us

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Explain any differences between proposed indirect cost pool and allocation base amounts, financial statements (or IRS Form 990), and the GL.

Are unallowable expenses eliminated from the indirect cost pool? The proposed cost pool must have sufficient detail to make an independent determination.

Provide a calculation of the indirect cost rate based on item 3. Above.

An example of this calculation, using total direct cost, is below. Allocation bases typically differ from one organization to another.

CALCULATION OF INDIRECT RATE

Pool (a) $ 750,000

Base (b) $ 3,225,000

Rate (a)/(b) 23.26%

Note: Base is total direct cost, excluding capital expenditures. Unallowable costs are excluded from the calculation.

A schedule of unallowable cost is provided.

During the proposal fiscal year, were there any significant changes to the accounting system or to the definition or accounting treatment of any expense category (e.g., a change in building/equipment costing methodology, a change in charging an expense from direct to indirect or vice versa)?

Provide a narrative description of how like expenses are determined to be direct or indirect (i.e., labor, travel, materials and supplies, etc.)

Certifications.

Submit, as part of the proposal, a certification that the requirements and standards regarding lobbying have been complied with. See Appendix B to Part 230- Selected items of Cost (paragraph 25). A copy is attached.

Certificate of Indirect Cost. A copy is attached.

As appropriate, are previous understandings with the Forest Service or other federal agency incorporated into the proposal (for example, previous rate agreements).

Provide a schedule of expenditures on federal awards (SEFA).

Organizational Chart

Provide the following information:

Organization Name (if different from the non-profit agency submitting the proposal)

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Point of Contact for the proposal: name, title, email, phone number, fax number

Name and title of official who is authorized to sign the rate agreement.

Note: All final negotiation agreements are e-mailed using Resource Audit Branch electronic issuance procedures. Please provide the name and e-mail address of the individual who is to receive the agreement

LOBBYING COST CERTIFICATE

I hereby certify that the has complied with the requirements and standards on lobbying cost in 2 CFR Part 200 (formerly 2 CFR Part 230) for the period 20XX through 20XX.

Non-Profit Organization:

Signature:

Name of Official: (Printed)

Title: __________________________________________________

Date of Execution __________________________________________________

This is to certify that I have reviewed the indirect cost proposal submitted herewith and to the best of my knowledge and belief:

All costs included in this proposal based on actual cost incurred as of , and dated , to establish final or billing indirect costs rates for fiscal year ended are allowable in accordance with the requirements of the Federal award(s) to which they apply and 2 CFR Part 200 (2 CFR Part 230). Unallowable costs have been adjusted for in allocating costs as indicated in the indirect cost proposal.

All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have not been claimed as direct costs. Similar types of costs have been accounted for consistently.

Non-profit Organization

Signature:

Name of Authorized Official:

Title:

Date of Execution:

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Budget and Narrative Sample

Below illustrates a sample detailed budget and narrative. with guidance for completing SF 424A and section B for the budget period. Please note this only a sample and does not include all that is required.

A. Personnel: Provide employee(s) (including names for each identified position) of the applicant/recipient organization, including in-kind costs for those positions whose work is tied to the grant project.

FEDERAL REQUEST

Position Name Annual Salary/Rate Level of Effort Cost

(1) Project Director

John Doe $64,890 10% $6,489

(2) Grant Coordinator

To be selected $46,276 100% $46,276

(3) Clinical Director

Jane Doe In-kind cost 20% $0

TOTAL $52,765

JUSTIFICATION: Describe the role and responsibilities of each position.

(1) The Project Director will provide daily oversight of the grant and will be considered key staff.

(2) The coordinator will coordinate project services and project activities, including training, communication and information dissemination.

(3) Clinical Director will provide necessary medical direction and guidance to staff for 540 clients served under this project.

Key staff positions require prior approval after review of credentials of resume and job description.

The key staff positions identified in Section I-2 Expectations must be included in the Personnel section and/or the Contractual Section (F). In addition, the Project Director must be the same as the Project Director named in section 8f of the SF-424.

NON-FEDERAL MATCH

Position Name Annual Salary/Rate Level of Effort Cost

(1) Project Director

John Doe $64,890 7% $4,542

(2) Prevention Specialist

Sarah Smith $26,000 25% $6,500

(3) Peer Helper Ron Jones $23,000 40% $9,200

(4) Clerical Support

Susan Johnson $13.38/hr x 100 hr. $1,338

TOTAL $21,580

JUSTIFICATION: Describe the role and responsibilities of each position.

(1) The Project Director will provide daily oversight of grant and will be considered key staff.

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(2) The Prevention development specialist will provide staffing support to the working council.

(3) The peer helper will be responsible for peer recruitment, coordination and support.

(4) The clerical support will process paperwork, payroll, and expense reports which is not included in the indirect cost pool.

FEDERAL REQUEST (enter in Section B column 1, line 6a of form SF424A) $52,765

NON-FEDERAL MATCH (enter in Section B column 2, line 6a of form SF424A) 21,580

B. Fringe Benefits: List all components of fringe benefits rate

Component Rate Wage Cost

FICA 7.65% $52,765 $4,037

Workers Compensation 2.5% $52,765 $1,319 Insurance 10.5% $52,765 $5,540

TOTAL $10,896

Component Rate Wage Cost

FICA 7.65% $21,580 $1,651

Workers Compensation 2.5% $21,580 $540 Insurance 10.5% $21,580 $2,266

TOTAL $4,457

JUSTIFICATION: Fringe reflects current rate for agency.

FEDERAL REQUEST (enter in Section B column 1, line 6b of form SF424A) $10,896

NON-FEDERAL MATCH (enter in Section B column 2, line 6b of form SF424A) $4,457

C. Travel: Explain need for all travel other than that required by this application. Local travel policies prevail.

Purpose of Travel Location Item Rate Cost

(1) Grantee Conference

Washington, DC Airfare $200/flight x 2 persons

$400

Hotel $180/night x 2 persons x 2 nights

$720

Per Diem (meals and incidentals)

$46/day x 2 persons x 2 days

$184

(2) Local travel Mileage 3,000 miles@.38/mile

$1,140

TOTAL $2,444

JUSTIFICATION: Describe the purpose of travel and how costs were determined.

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(1) Two staff (Project Director and Evaluator) to attend mandatory grantee meeting in Washington, DC.

(2) Local travel is needed to attend local meetings, project activities, and training events. Local travel rate is based on organization’s policies/procedures for privately owned vehicle (POV) reimbursement rate. If policy does not have a rate use GSA.

Purpose of Travel Location Item Rate Cost

(1) Regional Training Conference

Chicago, IL Airfare $150/flight x 2 persons

$300

Hotel $155/night x 2 persons x 2 nights

$620

Per Diem (meals) $46/day x 2 persons x 2 days

$184

(2) Local Travel Outreach workshops

Mileage 350 miles x .38/mile

$133

TOTAL $1,237

JUSTIFICATION: Describe the purpose of travel and how costs were determined.

(1) Grantees will provide funding for two members to attend the regional technical assistance workshop (our closest location is Chicago, IL).

(2) Local travel rate is based on agency’s POV reimbursement rate. If policy does not have a rate use

GSA.

FEDERAL REQUEST (enter in Section B column 1, line 6c of form SF424A) $2,444

NON-FEDERAL MATCH (enter in Section B column 2, line 6c of form SF424A) $1,237

D. Equipment: an article of tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit – federal definition.

FEDERAL REQUEST (enter in Section B column 1 line 6d of form SF424A) $0

NON-FEDERAL MATCH (enter in Section B column 2 line 6d of form SF424A) $0

E. Supplies: materials costing less than $5,000 per unit and often having one-time use

Item(s) Rate Cost General office supplies $50/mo. x 12 mo. $600 Postage $37/mo. x 8 mo. $296 Laptop Computer $900 $900 Printer $300 $300 Projector $900 $900

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Copies 8000 copies x .10/copy $800

TOTAL $3,796

JUSTIFICATION: Describe the need and include an adequate justification of how each cost was estimated.

(1) Office supplies, copies and postage are needed for general operation of the project.

(2) The laptop computer is needed for both project work and presentations.

(3) The projector is needed for presentations and outreach workshops.

All costs were based on retail values at the…