Revised Budget Workshop

Report
Revised Budget
Workshop
Carla Kirksey
OME
Mission of the Office of Migrant Education
To provide excellent leadership, technical assistance, and financial support to improve the educational opportunities and academic success of migrant
children, youth, agricultural workers, fishers, and their families.
Objectives
Review the Process of the Revised
Budget
Review the Cost Analysis Checklist
Provide opportunity to ask
questions regarding budget items
Basis of Your Budget
Your approved Application Project Narrative
Your approved Application ED 524 (Sections A, B &
C)
• Section A: Categorical description of use of Federal funds
• Section B : Categorical description of the use of NonFederal funds
• Section C: Narrative of the use of Federal AND NonFederal funds
Attachment J
Subsequent Changes and Revised Budgets
3
OME Monitoring of Fiscal Matters
Review of Application Budget
Review of Revised Budget
Review of APR Expenditure Report
Monthly or Quarterly Review of
Drawdowns
Review of Grant Balance at
Continuation
Review of Use of Funds for Specific
Requests
On-site and Desk Monitoring
Carryover Review
Revised Budget Checklist Overview
How Is Cost Sharing / Matching
Handled?
Review of Application Budget
Not Required by program laws
or regulations
If proposed in application,
must be provided
Must be outlined in ED 524,
Sections B (Table) and Section
C (Narrative)
Treated as Federal funds
are treated
The Budget Process
Application
Budget Analysis
With Budget Request
ED 524
ED 524
Attachment Js
Your Acceptance of
Recommended
Revised Budget
Department’s
Recommendation
GAN
Attachment Js
Expenditure Reporting &
Carryover Projection
Department’s
Recommended
Continuation
APR, Cover Sheet and
Section E
GAN
Original Attachment Js
Your Acceptance of
Continuation & Explanation
of Carryover
Revised Budget
7
What Are the Basic Considerations of Cost?
Reasonable
Allocable
Allowable
8
How Do I Determine a Reasonable Cost?
A cost is reasonable if it does
not exceed that which would be
incurred by a prudent person
under the circumstances
prevailing at the time the
decision was made to incur the
cost.
9
How Do I Determine an Allocable Cost?
A cost is allocable to a particular cost objective if the
goods/services involved are chargeable/assignable to such
cost objective in accordance with relative benefits
received/other equitable relationship.
A cost that can be traced to specific activities of a grant
project.
10
How Do I Determine an Allowable
Cost?
Is necessary & reasonable for the performance
of the award
Conforms with Federal cost principles
Is consistent with uniform procedures of the
organization
Is determined in accordance with generallyaccepted accounting principles
Is not included in any other Federally-financed
grant (unless authorized by statute)
11
What is Equipment?
Tangible nonexpendable personal property
• having a useful life of more than one year and
• an acquisition cost of $5,000 or more per unit.



Fungible property (paper, pens, pencils, calendars, CDs,
DVDs, chairs, desks, etc.)
Less than $5,000 per unit
NOT equipment, intangible property (e.g., software
designs), debt instruments, and contractor inventions
(e.g., student classroom alertness monitor/SCAM)
12
Indirect Costs
Difference between agreed upon indirect cost and a
restricted indirect cost rate cannot be used for cost
sharing
Direct Cost Base must not include
•
•
•
•
Each sub-award in excess of $25,000 (contracts)
Stipends
Tuition and related fees
Equipment, as defined in 34 CFR 74.2
8% applies to sub-awards that fund training
If negotiated indirect cost rate is lower, the grantee
must use the lower of the two
13
What Kind of Financial Management
Systems Do I Need?
• Relate financial data to performance data
• Accurate, current, & complete disclosure
• Records that identify source & application of
funds
• Effective control over & accountability for all
funds, property, & other assets
• Written procedures
 to minimize the time between transfer of funds to
the recipient
 for determining costs reasonableness, allocability, &
allowability
• Accounting records supported by source
documentation
• May require adequate bonding & insurance
14
Things to Remember
Email the 524 form in a Word document to your
program officer with only the current year’s column.
Revised budgets are due August 30, 2013.
Have proper documentation on file at your project
concerning contractors.
• Refer to the Cost Analysis Checklist for the
additional information on documentation for
contractors.
Send a full narrative only if there are changes to the
budget.
• Highlight specific changes from the original
application’s budget.
Revisions
Financial expression of the project
Required to report deviations from
budget and project plans
Request prior approvals for budget &
plan revisions, in accordance with
EDGAR 74.25
Grantee prepares & submits a budget
revision to acknowledge & accept the
award & all conditions
16
Budget Revision—Expanded Authority
A one-time extension of the expiration date of
the award of up to 12 months
• To complete project activities, NOT spend down
funds
Carry forward unobligated balances to
subsequent funding periods
17
Carryover Balance
Unexpended funds from a previous budget
period that are authorized for allowable
costs in a current budget period
Can be used in the next budget period for allowable activities
without any action by ED or the grantee unless restricted by
program staff as an award condition
Program staff may require a description of how the
unexpended funds will be used
This year, some grants were offset for carryover so funds could
be redistributed.
18
Budget Revisions—Prior Approvals
•
•
•
•
•
•
Change in scope or objectives
Need for additional funding
Change in key personnel specified in the application
Absence for more than 3 months of PD or PI
A 25% reduction in time of PD or PI
Transfer of amounts budgeted for indirect costs to absorb increases in
direct costs, or vice versa
• Costs that require prior approval in accordance with 2 CFR
• Transfer of funds allotted for training allowances (stipends) to other
categories of expense
• If NOT described in the application & funded in the approved award, the
transfer or contracting out of any work under an award
19
When Are Revised Budgets Due?
For Continuing
Grants, Revised
Budgets are due
•August 30, 2013.
References
Program Statute: Title IV, Section 418A of the
Higher Education Act of 1965 as amended by
section 408 of the Higher Education
Opportunity Act P.L. 110-315 (H.R. 4137)
Program Regulations: 34 CFR Part 206
Education Department General Administrative
Regulations (EDGAR)
Cost Principles
• Circular A-21 for Educational Organizations
(2 CFR Part 220)
• Circular A-122 for Non-Profit organizations (2
CFR Part 230)
Grant Attachments
FAQs Conferences and Meetings
21
OME Contact
Carla Kirksey
202-260-2114
[email protected]
Always seek the
assistance of your
program officer
first!

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