BUDGET FORMAT EXPLANATION Presented by Devon Nish Utah Department of Human Services Bureau of Contract Management

REVENUE SOURCES Page 1 –Ivory Page COLUMN A

TOTAL REVENUES Total Revenues indicates expected revenue from all sources of this organization. Only the amount listed in the first space of Column B ($50,000) is the amount required from the department of Human Services under the particular contract. COLUMN B

FUNCTIONAL REVENUE CENTERS These six columns indicate the separate programs for which the revenues will be allocated. The cumulative total of these columns must equal the total in Column B. COLUMNS C D E F G H

NOTE: Each individual source of revenue is allocated to one or more programs. There should be proper justification as to how the revenue is allocated.

SOME EXAMPLES WOULD BE: Certain contributions are specifically designated for a particular program. The number of clients in each program OR The expenditures necessary to operate the program.

PRIOR YEAR TOTAL REVENUES This column includes the prior year revenue received from all sources. This is usually the current year of operations. This amount could include, for example, 9 months of actual figures and 3 months of estimated figures, because the full year may not yet be completed before new contracts are processed. COLUMN I

EXPENSE CATEGORIES Pages 2, 3 & 4 –Gold Pages

3 MAIN CATEGORIES OF EXPENSES Category I Administration Category II Capital Category III Program The totals of these three categories (from Page 4, Column B - Total Expenses, Line 14,), must equal the Total Revenue Amount ($660,940), on Column B, Line 17, page 1.

ADMINISTRATIVE EXPENSES Page 2 Expenses relating to duties and procedures performed by employees or contracting parties not directly dealing with clients or related client activities. CATEGORY I EXPENSES

EXAMPLES OF ADMINISTRATIVE EXPENSES Personnel issues (hiring, salary, benefits, retirement, etc.) Advertising Obtaining items necessary for doing business (insurance, facilities, equipment, etc. Legal and accounting Seminars and meetings on management issues

CAPITAL EXPENDITURES Tangible personal property with a useful life of more than one year at a cost of $5,000 or more, or the capitalization level established by the organization for financial reporting purposes. CATEGORY II EXPENSES

NOTE: It is usually accepted that an employee such as the director, assistant, secretary, accountant, attorney, etc., have administrative duties. An employee such as a case worker, program specialist, coordinator, counselor, nurse, etc., will only have program duties.

Refer to DHS cost principles #6 for further definition of Administrative Expenses.

CATEGORY III EXPENSES Pages 3 and 4 Expenses relating to all personnel and activities of the organization dealing directly with the clients and policies and procedures which directly influence the individual clients.

TOTAL EXPENSES This column includes all of the line item expenses of the organization allocated between the 3 categories: –Administrative –Capital –Program COLUMN B

FUNCTIONAL EXPENSE CENTERS These functional expense are the same as the separate revenue centers on Page 1. Each program’s anticipated line item expenses shown. The total amount of each of these columns on Page 4, Line 14, should be the same as the total amount of each column (C,D,E,F,G,H) on page 1, Line 17. COLUMNS C D E F G H

CONTRACT REQUEST EXPENSES This column includes the anticipated line item expenses of this particular contract. The total amount of this column will equal the total amount on Column B, Line 1, under Total Amount Required ($50,000). COLUMN I

PRIOR YEAR CONTRACT EXPENSES This column contains the line item expenses for the prior year contract. The total amount is usually the same as the contract revenue for the prior year on Page 1, Column I, Line 1, although the actual expenses may differ from the available revenue. COLUMN J

BUDGET JUSTIFICATION Pages 5 and 6 –Yellow Pages

BUDGET JUSTIFICATION The justification pages relate only to the contract expense amounts. As part of the monitoring, auditors may compare the actual contract expenses with the contract budget amounts. The justification pages should include the method used in determining the amount in each cost category.

BUDGET JUSTIFICATION Many of the figures may be based on historical amounts with a normal cost of living increase, or there may be new additions or information that would not be similar to the previous year’s amounts. When costs are not directly charged, the allocation method used to determine the contract costs should be stated for each cost category.

SALARY SCHEDULE Page 7 –Gray page

SALARY SCHEDULE The salary schedule should show all employees (or groups of employees for larger organizations) and their titles with allocation of their time and salary between administrative and program expenses for the complete entity as well as the DHS contract. Part-time employees should be indicated.

SALARY SCHEDULE COLUMNS Total Salary Each employee’s total salary listed that they receive from the organization. Fringe benefits are not included as salary. COLUMN A

SALARY SCHEDULE COLUMNS Total Administrative and % The amount and percent of the employee’s total salary allocated to total administrative expenses of the organization. The total amount is placed in Page 2, Column B, Line 1, of the budget. COLUMN B

SALARY SCHEDULE COLUMNS Contract Administrative and % The amount and percent of the employee’s total salary allocated to the administrative expenses of the contract. The total amount is placed in Page 2, Column I, Line 1, of the budget. COLUMN C

SALARY SCHEDULE COLUMNS Total Program and % The amount and percent of the employee’s total salary allocated to total program expenses of the organization. COLUMN D

SALARY SCHEDULE COLUMNS Contract Program and % The amount and percent of the employee’s total salary allocated to the program expenses of the contract. The total amount is placed in Page 3, Column I, Line 1 of the budget. COLUMN E

The sample salary schedule shown in your handout is an example of the information required, but any format may be used to report the salaries if it contains the same information.

PARTIAL DISCLOSURE BUDGET EXAMPLE Additional 2 pages –Blue pages

PARTIAL DISCLOSURE BUDGET EXAMPLE Exceptions to full disclosure of all revenue and expenses of the provider will be examined on a case-by-case basis. Although guidelines listed on the following screens help establish the usual reasons for exception, they may not be all inclusive.

PARTIAL DISCLOSURE BUDGET EXAMPLE Providers and contract specialists should discuss, with a Contract Management Auditor, any request for an exception and include it in the contract.

An exception to full disclosure will be allowed under the condition listed below: EXPENSE CATEGORIES: –No administrative expenses are charged to the contract and the program expenses are small in amount and few in number. –The contract amount involves only one or two categories that are rate-based.

EXAMPLES OF A RATE-BASED CATETGORY Hiring of a coordinator for a new program. Cost for a counselor at a specified rate and travel expenses while visiting clients.

Listed below is another exception to full disclosure: Revenue Sources: –A very large organization with many sources of income and DHS contract amount is very small (under 10%).

For further information contact: Devon Nish Bureau of Contract Management