Grants Management Professional Learning Community Session #3: Budget Revision

Importance of Budget Planning and management tool Helps ensure compliance and future funding Tied to reimbursement requests and financial reports

Applying for new funding Applying for a new year of funding Budget Stages Initial Budget **************** Initial budget submitted to the granting agency for approval Applying for new funding Applying for a new year of funding Adjustment/ Amendment **************** Changes during negotiation of the initial budget BEFORE application is approved Budget Revision **************** Requests to change the approved budget

FAQs When are budget revisions required? Need for budget amount in additional line items (cost categories) Increasing a line item by more than 10% for State; Increasing a line item by more than 10% of total budget for Federal Adding new activities even if it does not change the line item total or budget amount Distributing unallocated funds

Common Missing Information in BUDGETS FAQs Common Missing Information in BUDGETS What is the FTE for staff positions? Estimated amount per laptop? How many laptops? What type of software? Who is attending what trainings? What is the purpose of the training? How does this item support your need/design?

Budget Revision Tips Have a copy of the latest approved budget before starting budget revision REVIEW most current budget to actual (YTD) report before starting budget revision Date your revisions-both in budget summary and narrative Use strikethrough, rather than deletion of obsolete budget items in narrative Aim for no more than 1 revision submission per quarter

Station Rotations #1 Group discussion of cost principles with Sheena #2 Team activity – hands on budget revision exercise #3 Individual review of grant budget and upcoming revision issues with Heather

What Are the Basic Considerations of Cost? Reasonable Allowable Allocable

Requirements of Budget Items* ALLOWABLE REASONABLE ALLOCABLE Know average costs & determine if ordinary and prudent person would pay such cost Know what your grant allows, disallows, and requires Know and understand budget cost objectives 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. Audience Participation: Has any requested a revision and it was disallowed? What was it? What can happen if you don’t know your budget cost effective? Give example. *Refer to Governing Documents from Session 1 and Charts of Accounts from Session 2