11 HEP/CAMP NEW DIRECTOR’S TRAINING SEPTEMBER 23, 2010 DEVELOPING A PROGRAM BUDGET BY: Dr. Maria T. Escobedo.

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HEP/CAMP NEW DIRECTOR’S HEP/CAMP NEW DIRECTOR’S TRAININGTRAINING

SEPTEMBER 23, 2010SEPTEMBER 23, 2010

DEVELOPING A PROGRAM DEVELOPING A PROGRAM BUDGETBUDGET

BY: Dr. Maria T. EscobedoBY: Dr. Maria T. Escobedo

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OverviewOverview

• The mission of OME is to provide excellent The mission of OME is to provide excellent leadership, technical assistance, and financial leadership, technical assistance, and financial support to improve the educational opportunities support to improve the educational opportunities and academic success of migrant children, youth, and academic success of migrant children, youth, agricultural workers and fishers, and their agricultural workers and fishers, and their families. families.

Source: OME websiteSource: OME website

• HEP and CAMP students are entitled to the social, HEP and CAMP students are entitled to the social, academic, and financial assistance according to academic, and financial assistance according to their assessed needs. their assessed needs.

Source: DeSoto, D., July 2010Source: DeSoto, D., July 2010

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BudgetsBudgets

• No two program budgets are the sameNo two program budgets are the same• Q: Is your budget aligned with the scope of Q: Is your budget aligned with the scope of

your grant?your grant?• Q: Is your budget aligned with your Q: Is your budget aligned with your

program activities– as outlined in the program activities– as outlined in the grant?grant?

• Note: Your Program Officer is a great Note: Your Program Officer is a great resource who will guide you. resource who will guide you.

• Note: Ask for guidance from other Note: Ask for guidance from other HEP/CAMP Directors HEP/CAMP Directors

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Pondering Questions???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 (budget and activities outlined in the

grant)grant)• Change in “Key Personnel”Change in “Key Personnel”• Can I move funds from stipends to other Can I move funds from stipends to other

line items? line items? • Can I move funds into the stipends Can I move funds into the stipends

category?category?

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BudgetBudget

• Grant Application (ED524 Form) Grant Application (ED524 Form) proposes the original five-year proposes the original five-year budget.budget.

• Grant Award Notification (GAN) Grant Award Notification (GAN) reflects the approved budget.reflects the approved budget.

• The Budget Narrative details all the The Budget Narrative details all the proposed activities and their costs.proposed activities and their costs.

• Source: DeSoto, July 2010Source: DeSoto, July 2010

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Allowable CostsAllowable Costs

• Are necessary and reasonable for the Are necessary and reasonable for the performance of the award;performance of the award;

• Conform with Federal costs principles:Conform with Federal costs principles:• Are consistent with uniform procedures of Are consistent with uniform procedures of

the organization;the organization;• Are determined in accordance with Are determined in accordance with

generally accepted principles; andgenerally accepted principles; and• Are not included in any other Federally Are not included in any other Federally

financed grant (unless authorized by financed grant (unless authorized by statute).statute).

Source: DeSoto, July 2010Source: DeSoto, July 2010

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Reasonable CostReasonable Cost

• A cost is “reasonable” if it does not A cost is “reasonable” if it does not exceed that which would be incurred exceed that which would be incurred by a prudent person under the by a prudent person under the circumstances prevailing at the time circumstances prevailing at the time the decision was made to incur the the decision was made to incur the cost. See the appropriate principles cost. See the appropriate principles circular (OMB): A-21 for Education circular (OMB): A-21 for Education Institutions (IHEs), or A-122 for Non-Institutions (IHEs), or A-122 for Non-Profit Organizations.Profit Organizations.

Source: DeSoto, July 2010Source: DeSoto, July 2010

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Budget Line 12 CategoriesBudget Line 12 Categories

1)1) Personnel (FT, PT, Student Mentors, etc.)Personnel (FT, PT, Student Mentors, etc.)2)2) Fringe Benefits (Example 37% @ CSUB)Fringe Benefits (Example 37% @ CSUB)3)3) Travel (recruitment cost, staff dev., Travel (recruitment cost, staff dev.,

student travel, etc.)student travel, etc.)4)4) Equipment Equipment 5)5) Supplies (consumable supplies, Supplies (consumable supplies,

computers, recruitment/marketing computers, recruitment/marketing supplies, etc.)supplies, etc.)

6)6) Contractual (summer programs, Contractual (summer programs, evaluators, etc.)evaluators, etc.)

7)7) Construction Construction

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Budget Line CategoriesBudget Line Categories

8.8. Other (telephone, printing, cost of Other (telephone, printing, cost of institutional facilities, HEP/CAMP association institutional facilities, HEP/CAMP association fees, etc. fees, etc.

9.9. Total Direct Cost (Lines 1-8)Total Direct Cost (Lines 1-8)10.10.Indirect Costs (8% Maximum)Indirect Costs (8% Maximum)11.11.Training Stipends (books, tuition, student Training Stipends (books, tuition, student

transportation fees, etc.)transportation fees, etc.)12.12.Total Costs Total Costs

Note: To move funds out of the Stipends Note: To move funds out of the Stipends Category requires approval from OMECategory requires approval from OME..

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ExampleExample

ActivityActivity

• Recruitment, Recruitment, conferencesconferences

• Summer Commuter Summer Commuter Program ActivitiesProgram Activities

• Telephone, postage, Telephone, postage, printing, CAMP printing, CAMP Association FeesAssociation Fees

• Tuition fees, books, Tuition fees, books, etc.etc.

BudgetBudget

• TravelTravel

• ContractualContractual

• OtherOther

• Training StipendsTraining Stipends

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CarryoverCarryover• Carryover Balance:Carryover Balance: Unexpended funds of Unexpended funds of

the grantee from a previous budget period the grantee from a previous budget period under a grant that are authorized for use to under a grant that are authorized for use to cover allowable costs in current budget cover allowable costs in current budget period (EDGAR Section 75.253). period (EDGAR Section 75.253).

• Unexpended Unexpended funds at the end of one funds at the end of one budget period can be used in the next budget period can be used in the next budget period for allowable activities budget period for allowable activities without any action by ED or the grantee without any action by ED or the grantee unless restricted by the program staff as unless restricted by the program staff as condition of the award. condition of the award.

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Carryover (cont.)Carryover (cont.)

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

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Examples—Use of Carryover Examples—Use of Carryover FundsFunds

• Staff developmentStaff development

• Student direct services, for example: Ropes Student direct services, for example: Ropes Challenge course (cost of service increased Challenge course (cost of service increased from original project of expenditurefrom original project of expenditure

• Computer maintenance – computer fees Computer maintenance – computer fees increasedincreased

• Cost of institutional services/facilities (i.e. Cost of institutional services/facilities (i.e. room and board, use of conference rooms, room and board, use of conference rooms, etc.)etc.)

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Examples (Cont.)Examples (Cont.)

• Supplies category (increased based on Supplies category (increased based on need)need)

• Purchase marketing materialsPurchase marketing materials

• Use for follow-up services, such as hire Use for follow-up services, such as hire student mentors to offer peer advising for student mentors to offer peer advising for CAMP alumni, cultural activities, update CAMP alumni, cultural activities, update and/or purchase computers, purchase and/or purchase computers, purchase computer programs to track program computer programs to track program activities/student databaseactivities/student database

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Training StipendsTraining Stipends

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

Source: DeSoto, July 2010Source: DeSoto, July 2010

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Training Stipends (cont.)Training Stipends (cont.)

• The statute and program regulations allow The statute and program regulations allow HEP & CAMP variations of training stipends.HEP & CAMP variations of training stipends.

• Departmental guidance limits indirect costs Departmental guidance limits indirect costs to a modified total direct (MTDC) basis, to a modified total direct (MTDC) basis, where training stipends costs are excluded where training stipends costs are excluded from the 8% (maximum) rate to charge from the 8% (maximum) rate to charge against the (modified) direct costs of a against the (modified) direct costs of a training grant.training grant.

• Source: DeSoto, July 2010Source: DeSoto, July 2010

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Training StipendsTraining Stipends

• ……room and board could be applicable to room and board could be applicable to either HEP or CAMP for some participants either HEP or CAMP for some participants who are residential, but not those who are who are residential, but not those who are commuters. In general, room and board commuters. In general, room and board should be charged as a Training should be charged as a Training Stipend...regardless of the HEP or CAMP…Stipend...regardless of the HEP or CAMP…

• Section 74.25 of EDGAR requires grantees Section 74.25 of EDGAR requires grantees to request approval before transferring to request approval before transferring funds allotted for training allowances funds allotted for training allowances (direct payments to trainees) to other (direct payments to trainees) to other categories of expense.categories of expense.

• Source: DeSoto, July 2010Source: DeSoto, July 2010

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Institutional Challenges???Institutional Challenges???

• Institutions (staff from various depts.) Institutions (staff from various depts.) are not familiar with the scope and are not familiar with the scope and activities of the grant.activities of the grant.

• Tracking monthly/quarter drawdownsTracking monthly/quarter drawdowns• Recommendation: Key staff to meet Recommendation: Key staff to meet

with the respective accounting offices with the respective accounting offices to assist them in understanding the to assist them in understanding the goal and scope of the grant.goal and scope of the grant.

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Institutional ChallengesInstitutional Challenges

• Recommendation: Attend institutional Recommendation: Attend institutional trainings to become familiar with trainings to become familiar with institutional protocols and policies.institutional protocols and policies.

• Example:Example: CSUB pre and post award CSUB pre and post award process for all grants (GRASP Office)process for all grants (GRASP Office)

• Understand the Process of how documents Understand the Process of how documents flowchart from beginning to end (CAMP—flowchart from beginning to end (CAMP—Associate VP EM—Grants Office—Accounts Associate VP EM—Grants Office—Accounts Receivable and Accounts Payable Offices.Receivable and Accounts Payable Offices.

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DiscussionDiscussion

• Group Discussion/FeedbackGroup Discussion/Feedback

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Contact Information

Maria T. Escobedo, Ed.D.E-mail: [email protected]: 661-654-6125

Have a great lunch!