Sheet 1: 1.  Budget Guidelines

	
	
	

		
BUDGET GUIDELINES
		


	
	

		


		


	
	

		
In addition to the budget information required on the SF-424A, applicants must provide the following three elements as part of the budget submission:
		


	
	

		
1. Summary Budget (Note: Using the OMB cost categories, see SF-424A);
		


	
	

		
2. Detailed Line-Item Budget (Direct and indirect costs);
		


	
	

		
3. Budget Narrative.
		


	
	

		


		


	
	

		
A. Summary Budget (Note: TEMPLATE ON TAB 3, autofills from Tab 4, "FundingType-FADR I Detailed Budget," Tab 5, "FundingType-FADR II Detailed Budget," etc.)
		


	
	

		


		


	
	

		
B. Detailed Line-Item Budget  (Note: TEMPLATE ON TAB 4, TAB 5, etc.)
		


	
	

		
Note: Applicants must provide a detailed line-item budget (in Microsoft Excel or similar spreadsheet format) outlining specific cost requirements within each of the summary budget categories. 
		


	
	

		
10-point font or larger; must fit on 8x11 letter sized paper, not legal size.  Once approved, the budget will be incorporated as a PDF into the binding agreement.
		


	
	

		
Cost share should be itemized in the appropriate separate column.  See below for more details on cost share.
		


	
	

		
The budget should cover the entire project period and reflect realistic yearly expenses based on project needs and the approved timeline.
		


	
	

		
All sub-award costs should be listed under Line F, "Contractual," of the prime budget.  A separate, itemized breakdown of costs should be provided in the Sub-Recipient Budget tab(s).  
		


	
	

		
All line items must be described in the Budget Narrative.
		


	
	

		


		


	
	

		
The budget sample on Tab 4, Tab 5, etc. is an example of the required format, but is not exhaustive; your budget might have additional items not listed here.  Please edit it to accurately reflect your planned expenditures.
		


	
	

		


		


	
	

		
C. Budget Narrative
		


	
	

		
Note: Include a budget narrative (preferably in Microsoft Word format) to justify and describe each line-item and how the amounts were derived, what specific activities are supported, as well as the source and description of all cost-share offered.  
		


	
	

		
Personnel – Staffing of employees should be appropriate to the program needs to include support staff such as HR, IT, finance, etc.  In general, direct employees of the non-federal entity receiving benefit are considered personnel.  Consultants or contractors hired through a contractual agreement should be included under the "Contractual" budget category.  Identify staffing requirements by each position title and provide a description of duties and responsibilites as it relates to the specific project.  Note any special expertise being leveraged where appropriate and explain the rationale behind the level of effort contribution.  Staff time and costs should be realistic to program needs. 
		


	
	

		
Fringe Benefits – Fringe benefits are allowances and services provided by employers to their employees as compensation in addition to regular salaries and wages.  Specify the type and rate and explain how benefits are computed for each category of employee.  Fringe benefits include, but are not limited to, the costs of leave (vacation, family-related, sick, or military); employee insurance; pensions; and unemployment benefit plans.  These costs may be derived from historical costs or calculated as a percentage of salaries and wages.  If the costs are calculated as a percentage of salaries and wages, this percentage will need to be justified by the entity’s written internal policy, dictated by country law or documented in their Negotiated Indirect Cost Rate Agreement (NICRA).
		


	
	

		
Travel – Describe the purpose of travel and how it relates to specific activities or actions within the proposal, as applicable.  Distinguish staff travel from that of consultants, contractors, project participants, or beneficiaries.  International travel is considered travel from the prime organization's country location in ther SAM.gov entity record to another country.  For U.S.-based organizations, this would be travel outside of the CONUS.  For foreign based organizations, this would be travel outside of the country location in the SAM.gov entity record.  Country Travel is travel within or between two or more of the project's target countries.  For example, a project for a U.K.-based organization that includes travel within the target country of Mexico or travel between the two target countries of Mexico and Brazil would capture these costs under this section.  Domestic travel is travel within the prime organization's country of origin.  Travel modes may include airfare, train, bus, public, or privte car.  Lodging and per diem rates must be consistent with organizational policy rates.  In the absence of policy rates,  per diem rates may not exceed the published U.S. government allowance rates.  Explain differences in fares among travelers on the same routes: e.g., project staff member traveling for three weeks whose fare is higher than that of staff member traveling for four months.  All travel must be in compliance with the Fly America Act.
		


	
	

		
Fly America
		


	
	

		
Foreign Per Diem Rates by Location
		


	
	

		
GSA Per Diem Lookup
		


	
	

		


		


	
	

		
Equipment – Provide justification for any equipment purchase/rental, defined as tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more.  If equipment is replacing previous equipment, provide more information on equity among other projects or certification that the equipment is used solely for the intended project.
		


	
	

		
Supplies – Describe and/or list supplies that may be specific to the project from those supplies for general office use.  Where general office supplies are being requested, provide types (photocopying, postage, telephone/fax, printing, etc.) of supplies, amount being charged and the percentage to the award.  Genreally, laptops, cell phones, and printers less than $5,000 would be considered supplies. 
		


	
	

		
Contractual – Inclusive of sub-recipients, contractors, and consultants.  Both sub-recipients and contractors must be legally registered organizations and acquire a DUNS/UEI (certain exceptions apply).  Contractors/consultants purely for procurement of goods and/or services do not require a separate detailed excel breakdown.  Sub-recipient line-item budgets should be submitted in a separate tab with the same level of detail for all line items (personnel, travel, supplies, etc.) required of the prime recipient.  Sub-recipient budget narratives may be incorporated into the prime recipient budget narrative or in a separate document.  Similiar to the prime recipient budget narrative, detail should be provided on how costs were calculated, staff responsibilities, and specific activities being supported.  Assistance in the form of in-kind materials or direct payments for services may be considered for informal/unregistered groups and should be itemized under Line H.
		


	
	

		
Sub-recipients: A sub-award is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient.  See §200.92 Subaward. Subrecipients agreements are subject to §200.331 Requirements for pass-though entities.
		


	
	

		
Contractors: A contract is for the purpose of obtaining goods and services for the non-Federal entity's own use and creates a procurement relationship with the contractor. See §200.22 Contract.
		


	
	

		
Other Direct Costs – These will vary depending on the nature of the project but are typically costs associated with activities or costs that cannot be placed in other categories.  Typical costs may include venue/rental costs; audits; evaluations; monthly subscriptions costs (teleconferencing services, data sharing services, etc.); office rental costs; insurance charges; security costs; etc.  Justify each in the budget narrative as either an association with an activity or other rationale relevant to successful implementation of the award.
		


	
	

		
Indirect Charges – Charges for overhead, facilities, or G&A may be recouped in different ways depending on applicability.  See 2 CFR 200, "Cost Principles" for non-profit organizations; Federal Acquisition Regulation (FAR) 48 CFR part 31 for commercial firms.
		


	
	

		
If your organization has an indirect cost-rate agreement (NICRA) with the U.S. Government, a current copy must be included with the application.  
		


	
	

		
If your organization does not have a NICRA, you may claim up to 10% of Modified Total Direct Costs, as described in 2 CFR 200.68 and 2 CFR 200.414.
		


	
	

		
If sub-recipients are claiming indirect costs, they should have an established NICRA that is also submitted with the proposal package, or they may also claim up to the 10% MTDC rate.
		


	
	

		
If your organization is relatively small and can easily identify shared costs among projects including rent; depreiciation, facilities costs; etc. these may be directly allocated and charged as direct costs under Line H.  However, a description of the allocation methodology must be provided.
		


	
	

		


		


	
	

		
The Bureau WILL CONSIDER budgeted line items for:
		


	
	

		
Independent evaluations to assess the project’s impact (costs must be built into the overall original budget proposal and must be reasonable);
		


	
	

		
Costs associated with an internal evaluation conducted by the applicant (costs must be built into the overall original budget proposal and must be reasonable).
		


	
	

		


		


	
	

		
The Bureau WILL NOT CONSIDER budgeted line items for:
		


	
	

		
Any unallowable costs, as described in OMB cost principle circulars; 
		


	
	

		
Projects designed to advocate policy views or positions of foreign governments or views of a particular political faction; 
		


	
	

		
Entertainment expenses, including alcoholic beverages.
		


	
	

		
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Before grants are awarded, the Bureau reserves the right to reduce, revise, or increase proposal budgets in accordance with the Bureau’s program needs and availability of funds.
		


	
	

		


		


	
	

		
Cost Share
		


	
	

		
Cost share is the portion of program cost not borne by DOS.  Refer to the NOFO to determine whether cost sharing is required or encouraged.  In general, applications that include in-kind and/or cash contributions from non-U.S. Government sources will be more competitive, since cost-sharing demonstrates a strong commitment to the activities and greater cost effectiveness. 
		


	
	

		
Assign a U.S. Dollar monetary value to each in-kind and/or cash contribution.  If the proposed project is a component of a larger program or initiative such as a public-private partnership, DO NOT include this as cost share.
		


	
	

		
Applicants should consider all types of cost-sharing.  Examples include the use of office space owned by other entities; donated or borrowed supplies and equipment; (non-federal) sponsored travel costs; waived indirect costs; and program activities, translations, or consultations.  The values of offered cost share should be reported in accordance with 2 CFR 200.  Other USG funding or foreign government funding does not constitute as cost share.  
		


	
	

		
The recipient of a foreign assistance award must maintain written records to support all allowable costs that are claimed as its contribution to cost share, as well as costs to be paid by the Federal government.  Such records are subject to audit.  The basis for determining the value of cash and in-kind contributions must be in accordance with 2 CFR 200.  In the event the recipient does not meet the amount of cost-sharing stipulated in their application, the Bureau’s contribution may be reduced in proportion to the recipient’s stated contribution. 
		


	
	

		


		


	
	

		
Office of Management and Budget (OMB) Circulars
		


	
	

		
Organizations should be familiar with the applicable sections of OMB 2 CFR 200 and 600 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
		


	
	

		
2 CFR §200
		


	
	

		
2 CFR §600
		


	



Sheet 2: 2. Funding Types & FADR

	
	

		
BUDGET GUIDELINES CONTINUED - Multiple Funding Types and Foreign Assistance Data Review (FADR)
	
	

		


	
	

		
What is it?
	
	

		
The Foreign Assistance Data Review (FADR) is an initiative at the Department of State to improve the overall quality, reliability, and availability of foreign assistance data to provide Congress, Department leadership and the public, with an accurate picture of the Department’s foreign assistance portolios.
	
	

		
How does it work? 
	
	

		
For awards being paid out of the Payment Management System (PMS) - an additional field(s) is added to the fiscal information, which captures geographical and programmatic information about the assistance.  This "tag" is also added to the award number or "sub-account" within PMS. 
	
	

		
What does this impact?
	
	

		
For award(s) being funded by two or more distinct sources of funding (fiscal data), a unique tag will generate for each, causing two or more sub-accounts to generate in PMS.
	
	

		
Why does this matter?
	
	

		
Since each subaccount in PMS will function as its own award, the Recipient will be required to complete multiple financial reports and monitor expenditure against each sub-account.
	
	

		
What does this mean for my budget?
	
	

		
The NOFO will indictate the anticipated source(s) of funding applicable, the country and or/program focus, and an allocation of focus compared to the overall project, which may be further elaborated if recommended for funding.  The purpose of this budget is to establish and tracking expenses in accordance with FADR. 
	
	

		
This budget template represents a scenerio in which there is a clear or focused distinction between each source of funding and program resources and activites must be segregated.  This may be an instance where the first funding element is global in scope, but the second is provided only for use in a partcular region.  Or, this may apply when the first funding element targets a particular region, but the second funding element targets a particular theme or country within that region.   For example: Funding element 1 is for a transitional justice program in WHA; Funding element 2 is for a focus on women and girls, or specifically tranistional justice in Honduras.  In such cases, each tab must demonstrate this distinction.
	



Sheet 3: 3. Summary Budget

	
	
	
	
	
	

		
SAMPLE SUMMARY BUDGET
		


		


		


		


		


	
	

		
Organization Name
		


		


		


		


		


	
	

		
Project Title
		


		


		


		


		


	
	

		
Project Duration
		


		


		


		


		


	
	

		
        
		


		


		
Federal Request
		
Cost Share
		
Total Project Budget
	
	

		
A
		


		
Personnel
		
0.00
		
0.00
		
0.00
	
	

		
B
		


		
Fringe Benefits
		
0.00
		
0.00
		
0.00
	
	

		
C
		


		
Travel 
		
0.00
		
0.00
		
0.00
	
	

		
D
		


		
Equipment
		
0.00
		
0.00
		
0.00
	
	

		
E
		


		
Supplies
		
0.00
		
0.00
		
0.00
	
	

		
F
		


		
Contractual
		
0.00
		
0.00
		
0.00
	
	

		
G
		


		
Construction
		
0.00
		
0.00
		
0.00
	
	

		
H
		


		
Other Direct Costs
		
0.00
		
0.00
		
0.00
	
	

		
I
		


		
Total Direct Costs
		
0.00
		
0.00
		
0.00
	
	

		
J
		


		
Total Indirect Costs
		
0.00
		
0.00
		
0.00
	
	

		
K
		


		
Total (Sum I + J)
		
0.00
		
0.00
		
0.00
	
	

		


		


		


		


		


		


	
	

		
* Line-item amounts auto-fill from "Detailed Grant Budget Template" tab(s).