1. 11 HEP/CAMP NEW DIRECTOR’S TRAINING December 4, 2012 DEVELOPING A PROGRAM BUDGET By: Susy Sarmiento, Amas Aduviri & Nate Weiss

2. 22 Overview The mission of OME is to provide excellent leadership, technical assistance, and financial support to improve the educational opportunities and academic success of migrant children, youth, agricultural workers and fishers, and their families. The mission of OME is to provide excellent leadership, technical assistance, and financial support to improve the educational opportunities and academic success of migrant children, youth, agricultural workers and fishers, and their families. Source: OME website HEP and CAMP students are entitled to the social, academic, and financial assistance according to their assessed needs. HEP and CAMP students are entitled to the social, academic, and financial assistance according to their assessed needs. How does a project create their program budget? How does a project create their program budget? –Higher Education Act 418 (A), HEOA 2008 –EDGAR (Education Department General Administration Regulations. –Federal Register –OMB Circular A-21 for Educational Institutions (IHEs) or A-122 for Non-Profit Organizations.

3. 33 Budgets No two program budgets are the same No two program budgets are the same Q: Is your budget aligned with the scope of your grant? Q: Is your budget aligned with the scope of your grant? Q: Is your budget aligned with your program activities– as outlined in the grant? Q: Is your budget aligned with your program activities– as outlined in the grant? Note: Your Program Officer is a great resource who will guide you. Note: Your Program Officer is a great resource who will guide you. Note: Ask for guidance from other HEP/CAMP Directors Note: Ask for guidance from other HEP/CAMP Directors

4. 44 Pondering Questions??? Are matching funds required? Are matching funds required? If your program started late, what now?? If your program started late, what now?? (budget and activities outlined in the grant) Change in “Key Personnel” Change in “Key Personnel” Can I move funds from stipends to other line items? Can I move funds from stipends to other line items? Can I move funds into the stipends category? Can I move funds into the stipends category?

5. 55 Allowable Costs Under HEA 418 (A) Health Services, Scholarships, student travel, childcare, stipends, housing, books/supplies, tuition & fees, cultural events, transportation, etc. Health Services, Scholarships, student travel, childcare, stipends, housing, books/supplies, tuition & fees, cultural events, transportation, etc. Allowable Costs Under HEA 418 (A)

6. Federal Register & OMB Circular Federal Register has the updates on Legislation & Regulations Federal Register has the updates on Legislation & Regulations OMB Circular establishes principals for determining costs OMB Circular establishes principals for determining costs 6

7. 7 Allowable Costs Under EDGAR Under 24 CFR 74.2, 75.703, 75.707, 80.3 Allowable, Allocable & Reasonable Clear, concise & detailed Consistent with institutional policy Provide for accurate, current and complete disclosure of results regarding the use of project funds. Document both the federal and non-federal funds used to carry out the project

8. 8 Are costs necessary and reasonable for the performance of the award? Do costs conform with federal costs principles? Are costs consistent with uniform procedures of the organization? Are they determined in accordance with generally accepted principles? They are not included in any other federally financed grant (unless authorized by statute)? Ask Yourself???

9. 99 Budget Grant Application (ED524 Form) proposes the original five-year budget. Grant Application (ED524 Form) proposes the original five-year budget. Grant Award Notification (GAN) reflects the approved budget. Grant Award Notification (GAN) reflects the approved budget. The Budget Narrative details all the proposed activities and their costs. The Budget Narrative details all the proposed activities and their costs.

10. ED 524 Form 10

11. GANGANGANGAN 11

12. Budget Narrative 12

13. 1313 Reasonable Cost A cost is “reasonable” if it does not exceed that of which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. A cost is “reasonable” if it does not exceed that of which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.

14. 1414 12 Budget Line Categories 1. Personnel (FT, PT, Student Mentors, etc.) 2. Fringe Benefits (Example 33% @ UNM) 3. Travel (recruitment cost, staff dev., student travel, etc.) 4. Equipment 5. Supplies (consumable supplies, computers, recruitment/marketing supplies, etc.) 6. Contractual (summer programs, evaluators, etc.) 7. Construction

15. 1515 Budget Line Categories 8. Other (telephone, printing, cost of institutional facilities, HEP/CAMP association fees, etc. 9. Total Direct Cost (Lines 1-8) 10. Indirect Costs (8% Maximum) 11. Training Stipends (books, tuition, student transportation fees, etc.) 12. Total Costs NOTE: To move funds out of the Stipends Category, it requires approval from OME.

16. 1616 Budget Revisions/Transfers Grantees should submit a revised budget for new grant, continuation or supplemental awards. Grantees should submit a revised budget for new grant, continuation or supplemental awards. Due within 30 days after award effective date. Due within 30 days after award effective date. Reconcile your revised budget with your institution’s budget office. Reconcile your revised budget with your institution’s budget office. Include Cover Page Include Cover Page Include project’s name and PR number on each page. Include project’s name and PR number on each page. Allow ample time to reconcile expenditures and for signatures. Allow ample time to reconcile expenditures and for signatures. Moving money from one budget category to another is allowed except stipends category. Moving money from one budget category to another is allowed except stipends category. No prior approvals needed for most budget transfers No prior approvals needed for most budget transfers When in doubt, check with Program Officer When in doubt, check with Program Officer

17. 1717 Carryover Carryover Balance: Unexpended funds of the grantee from a previous budget period under a grant that are authorized for use to cover allowable costs in current budget period (EDGAR Section 75.253). Carryover Balance: Unexpended funds of the grantee from a previous budget period under a grant that are authorized for use to cover allowable costs in current budget period (EDGAR Section 75.253). Unexpended funds at the end of one budget period can be used in the next budget period for allowable activities without any action by ED or the grantee unless restricted by the program staff as condition of the award. Unexpended funds at the end of one budget period can be used in the next budget period for allowable activities without any action by ED or the grantee unless restricted by the program staff as condition of the award.

18. 1818 Carryover (cont.) For use of carryover funds program staff (typically the Program Director) will submit the request to their Program Officer and provide a description of how the unexpended funds will be used. For use of carryover funds program staff (typically the Program Director) will submit the request to their Program Officer and provide a description of how the unexpended funds will be used.

19. 1919 Examples for use of Carryover Funds Staff development Staff development Student direct services, for example: Ropes Challenge course (cost of service increased from original project of expenditure) Student direct services, for example: Ropes Challenge course (cost of service increased from original project of expenditure) Computer maintenance – computer fees increased Computer maintenance – computer fees increased Cost of institutional services/facilities (i.e. room and board, use of conference rooms, etc.) Cost of institutional services/facilities (i.e. room and board, use of conference rooms, etc.)

20. 2020 Continued examples…. Supplies category (increased based on need) Supplies category (increased based on need) Purchase marketing materials Purchase marketing materials Use for follow-up services, such as hire student mentors to offer peer advising for CAMP alumni, cultural activities, update and/or purchase computers, purchase computer programs to track program activities/student database Use for follow-up services, such as hire student mentors to offer peer advising for CAMP alumni, cultural activities, update and/or purchase computers, purchase computer programs to track program activities/student database

21. 2121 Training Stipends Training stipends are an allowable cost, but must be shown in the budget narrative to be aligned to the activities and goals of the approved application, be “reasonable” and necessary to assist the students to successfully complete the program Training stipends are an allowable cost, but must be shown in the budget narrative to be aligned to the activities and goals of the approved application, be “reasonable” and necessary to assist the students to successfully complete the program

22. 2222 Training Stipends (cont.) The statute and program regulations allow HEP & CAMP variations of training stipends. The statute and program regulations allow HEP & CAMP variations of training stipends. Departmental guidance limits indirect costs to a modified total direct (MTDC) basis, where training stipends costs are excluded from the 8% (maximum) rate to charge against the (modified) direct costs of a training grant. Departmental guidance limits indirect costs to a modified total direct (MTDC) basis, where training stipends costs are excluded from the 8% (maximum) rate to charge against the (modified) direct costs of a training grant.

23. 2323 Training Stipends (cont.) Room and board could be applicable to either HEP or CAMP for some participants who are residential, but not those who are commuters. In general, room and board should be charged as a Training Stipend...regardless of the HEP or CAMP. Room and board could be applicable to either HEP or CAMP for some participants who are residential, but not those who are commuters. In general, room and board should be charged as a Training Stipend...regardless of the HEP or CAMP. Section 74.25 of EDGAR requires grantees to request approval before transferring funds allotted for training allowances (direct payments to trainees) to other categories of expense. Section 74.25 of EDGAR requires grantees to request approval before transferring funds allotted for training allowances (direct payments to trainees) to other categories of expense.

24. 2424 Institutional Challenges Institutions (staff from various depts.) are not familiar with the scope and activities of the grant. Institutions (staff from various depts.) are not familiar with the scope and activities of the grant. Tracking monthly/quarter drawdowns, many institutions may have their own line items Tracking monthly/quarter drawdowns, many institutions may have their own line items Recommendation: Key staff to meet with the respective accounting offices to assist them in understanding the goal and scope of the grant. Recommendation: Key staff to meet with the respective accounting offices to assist them in understanding the goal and scope of the grant. Each institution has established accounting methods Each institution has established accounting methods Sometimes state policies may supersede federal policies Sometimes state policies may supersede federal policies

25. 2525 Institutional Challenges (cont.) Recommendation: Attend institutional trainings to become familiar with institutional protocols and policies. Recommendation: Attend institutional trainings to become familiar with institutional protocols and policies. Example: UNM has a pre and post award process for all grants under Contracts & Grants Office (C&G) Example: UNM has a pre and post award process for all grants under Contracts & Grants Office (C&G) Understand the Process of how documents flowchart from beginning to end (ex: HEP to Accountant to Operations Director to Associate VP of Student Services to C&G Office to Accounts Receivable/Payable Offices.) Understand the Process of how documents flowchart from beginning to end (ex: HEP to Accountant to Operations Director to Associate VP of Student Services to C&G Office to Accounts Receivable/Payable Offices.) Make friends with the budget office staff Make friends with the budget office staff

26. 2626 Questions???

27. 27 THANK YOU!