Guidance: TCN/CNCS Budget Development Instructions
Before preparing your grant budget, your financial management team should become familiar with the rules and regulations required for the grant to which you are a part of. The Corporation for National and Community Service (CNCS) and the Office of Management and Budget (OMB) develop general guidelines that apply to the various cost elements allowable for specific grants provided by the Corporation.
State Laws: AmeriCorps program staff must be aware of state laws as applicable to the AmeriCorps program. This includes state laws pertaining to taxes, workers compensation, background checks, etc.
Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards – 2 CFR 200 issued by the federal Office of Management and Budget (OMB) and outlines administrative requirements and cost principles for nonprofit organizations, state and local governments, and educational institutions using federal funds. Understanding Uniform Administrative Requirements is critical to operating a compliant federal grant. https://www.govinfo.gov/content/pkg/CFR-2014-title2- vol1/pdf/CFR-2014-title2-vol1-part200.pdf
Program Requirements in the AmeriCorps Regulations
All federal regulations for government funding are published in the Federal Register. CNCS regulations for AmeriCorps programs can be found in the Code of Federal Regulations (CFR). The AmeriCorps Terms & Conditions are updated annually to provide guidance. Also important are the National Service Laws and Corporate Statutes, including the National and Community Service Act of 1990, as amended, and the Serve America Act of 2009 (Edward M. Kennedy Serve America Act).
AMERICORPS PROGRAM REQUIREMENTS | REGULATORY CITATION |
---|---|
Member Service Activities | §2520.20 – 2520.55 |
Prohibited Activities | §2520.65 |
Matching Funds | §2521.35 – 2521.90 |
Member Benefits | §2522.240 – 2522.250 |
Calculating the Cost Per Member Service Year (MSY) | §2522.485 |
Performance Measures | §2522.500 – 2522.650 |
Evaluation | §2522.500-2522.540 and §2522.700-2522.740 |
Selection Criteria and Selection Process | §2522.400-2522.485 |
A. Personnel Expenses
List each staff position separately (Name of Staff and Title) and provide salary and percentage of effort as percentage of FTE devoted to this grant award. Each staff person’s role listed in the budget must be described in the application narrative and each staff person mentioned in the narrative must be listed in the budget as either CNCS or Grantee share.
Because the purpose of this grant is to enable and stimulate volunteer community service, do not include the value of direct community service performed by volunteers. However, you may include the value of volunteer services contributed to the organization for organizational functions such as accounting, audit work, or training of staff and AmeriCorps members. [see 45 CFR 2521.45]
B. Personnel Fringe Benefits
Purpose/Description: Identify the types of fringe benefits to be covered and the costs of benefit(s) for each staff position. Allowable fringe benefits typically include:
- FICA
- Worker’s Compensation
- Retirement
- SUTA
- Health and Life Insurance
- IRA and 401K
You may provide a calculation for total benefits as a percentage of the salaries to which they apply or list each benefit as a separate item. Holidays, leave, and other similar vacation benefits are not included in the fringe benefit rates, but are absorbed into the personnel expenses (salary) budget line item. If a fringe benefit amount is over 30%, you must list covered items separately and justify the high cost
C. 1. Staff Travel (Staff Travel to TCN National Conference Must be Included)
Describe the purpose for which program staff will travel. Provide a calculation that includes itemized costs for airfare, transportation, lodging, per diem, and other travel-related expenses multiplied by the number of trips/staff.
Where applicable, identify the current standard reimbursement rate(s) of the organization for mileage, daily per diem, and similar supporting information. Reimbursement should not exceed the federal mileage rate unless a result of applicant policy and justified in the budget narrative. Only domestic travel is allowable. For 2019 – https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019
All applicants are required to include funds in this line item for travel for staff to attend The Corps Network’s annual National Conference.
Itemize the costs. Example: One staff members will attend the National Conference in Washington, DC
$600 registration +$500 airfare + 50 ground transportation + $800 lodging (4 nights) + $35/day per diem = $2,090 for National Conference
C. 2. Member Travel
Describe the purpose for which members will travel. Provide a calculation that includes itemized costs for airfare, transportation, lodging, per diem, and other related expenses for members to travel outside their service location or between sites.
Costs associated with local travel, such as bus passes to local sites, mileage reimbursement for use of car, etc., should be included in this budget category.
Where applicable, identify the current standard reimbursement rate(s) of the organization for mileage, daily per diem, and similar supporting information. The standard mileage reimbursement should not exceed the federal mileage rate. If your organization’s approved mileage rate is less than the federal mileage rate, you can only reimburse up to your organization’s published reimbursement rate. Only domestic travel is allowable.
D. Equipment
Equipment is defined as tangible, non-expendable personal property having a useful life of more than one year AND an acquisition cost of $5,000 or more per unit (including accessories, attachments, and modifications). Any items that do not meet this definition should be entered in E. Supplies below
Purchases of equipment are limited to 10% of the total CNCS funds requested. If applicable, show the unit cost and number of units you are requesting. Provide a brief justification for the purchase of the equipment under Item/Purpose.
E. Supplies (Member Service Gear Must be Included)
AmeriCorps members must wear an AmeriCorps logo on a daily basis – preferably clothing with the AmeriCorps logo. The item with the AmeriCorps logo is a required budget expense. Please include the cost of the item with the AmeriCorps logo in your budget or explain how your program will be providing the item to AmeriCorps members without using grant funds. Grantees may add the AmeriCorps logo to their own local program uniform items using federal funds. Please note that your program will be using the AmeriCorps logo in the budget description.
Include the amount of funds to purchase consumable supplies and materials, including member service gear and equipment that does not fit the definition above.
You must individually list any single item costing $1,000 or more.
Except for safety equipment, grantees may only charge the cost of member service gear to the federal share if it includes the AmeriCorps logo.
All safety gear may be charged to the federal share, regardless of whether it includes the AmeriCorps logo. All other service gear must be purchased with non-CNCS funds.
F. Contractual and Consultant Services
Include costs for consultants related to the project’s operations, except training or evaluation consultants, who will be listed in Sections G. and H., below.
Indicate the daily rate, number of days, and total cost for consultants you are proposing to use and their contractual services.
Do not include costs in this category unless you feel it is absolutely necessary. You are held to The Corps Network’s Procurement Policy, if you do:
POLICY: PROCUREMENT STANDARDS
These are related to securing: professional consultant/contract services; purchase of supplies and other expendable property; equipment; real property; and other services. Conduct, to the maximum extent practical, open and fair competition. This requires three bids per transaction exceeding the threshold:
Professional Services | Greater than or equal to $25,000 per consultant/contractor per year. |
Equipment | Greater than or equal to $2,000 per purchase |
Supplies | Greater than or equal to $1,000 per purchase |
Expendable Property | Greater than or equal to $1,000 per purchase |
Real Property | Greater than or equal to $1,000 per purchase |
Other Services | Greater than or equal to $1,000 per service. |
Subgrantee must review all vendors/contractors doing business(procurement transactions)in the System for Award Management (SAM). Ineligible (debarred) parties will be excluded from The Corps Network’s sponsored grant involvement.
G. 1. Staff Training
Include the costs associated with training staff on project requirements and training to enhance the skills staff need for effective project implementation, i.e., project or financial management, team building, etc. If using a consultant(s) for training, indicate the estimated daily rate. There is not a maximum daily rate.
G. 2. Staff Training
Include the costs associated with member training to support them in carrying out service activities. You may also use this section to request funds to support training in Life after AmeriCorps. If using a consultant(s) for training, indicate the estimated daily rate. There is not a maximum daily rate.
H. Evaluation
Include the costs associated with member training to support them in carrying out service activities. You may also use this section to request funds to support training in Life after AmeriCorps. If using a consultant(s) for training, indicate the estimated daily rate. There is not a maximum daily rate. Include costs for project evaluation activities, including additional staff time or subcontracts, use of evaluation consultants, purchase of instrumentation, and other costs specifically for this activity not budgeted in Personnel Expenses. This cost does not include the daily/weekly gathering of data to assess progress toward meeting performance measures, but is a larger assessment of the impact your project is having on the community, as well as an assessment of the overall systems and project design. Indicate daily rates of consultants, where applicable.
I. Other Program Operating Costs (Criminal History Checks Must be Included)
Allowable costs in this budget category should include when applicable:
- Criminal history background checks for all members and for all employees or other individuals who receive a salary, education award, living allowance, or stipend or similar payment from the grant (federal or non-federal share). Please include the cost for these checks for staff and members or explain how your program will be covering the cost in the budget narrative.
- Office space rental for projects operating without an approved indirect cost rate agreement that covers office space. If space is budgeted and it is shared with other projects or activities, the costs must be equitably pro-rated and allocated between the activities or projects.
- Utilities, telephone, internet and similar expenses that are specifically used for AmeriCorps members and AmeriCorps project staff, and are not part of the organization’s indirect cost allocation pool. If such expenses are budgeted and shared with other projects or activities, the costs must be equitably pro-rated and allocated between the activities or projects.
- Recognition costs for members. List each item and provide a justification in the budget narrative. Gifts and/or food in an entertainment/event setting are not allowable costs.
Section II: Member Costs
Member costs are identified as “Living Allowance” and “Member Support Costs.” Your required match can be federal, state, local, or private sector funds.
A. Living Allowance
The narrative should clearly identify the number of members you are supporting by category (i.e., fulltime, three quarter time, half time, reduced-half-time, quarter-time, and minimum-time) and the amount of living allowance they will receive, allocating appropriate portions between the CNCS share (CNCS Share) and grantee share (match).
A living allowance is not a wage. Sub-grantees must not pay a living allowance on an hourly basis. Living allowance should be paid in regular increments, such as weekly or bi-weekly, paying an increased increment only on the basis of increased living expenses such as food, housing, or transportation. Payments should not fluctuate based on the number of hours served in a particular time period, and must cease when the member’s service ceases.
If a member serves all required hours and is permitted to conclude his or her term of service before the originally agreed upon end of term, the grantee may not provide a lump sum payment to the member. Similarly, if a member is selected after the program’s start date, the grantee must provide regular living allowance payments from the member’s start date and may not increase the member’s living allowance incremental payment or provide a lump sum to make up any missed payments.
AmeriCorps Education Award Programs may provide a living allowance or other in-service benefits to their members, but are not required to do so.
The minimum and maximum living allowance amounts for 2018-2019, are provided below:
Service Term | Minimum Hours | Minimum Living Allowance | Maximum Total Living Allowance |
---|---|---|---|
Full-Time | 1700 | $13,992 | $27,984 |
Three Quarter Time | 1200 | n/a | $19,753 |
1 Year Half/Part-Time | 900 | n/a | $14,815 |
Reduced Half Time | 675 | n/a | $11,111 |
Quarter Time | 450 | n/a | $7,408 |
Minimum Time | 300 | n/a | $4,938 |
Segal AmeriCorps Education Award amounts for National Service positions approved in Fiscal Year 2019 (Effective October 1, 2018), are provided below:
Participation Types | Minimum Hours | Amount |
---|---|---|
Full-Time (FT) | 1700 | $ 6,095.00 |
Three Quarter Time (TQT) | 1200 | $ 4,266.50 |
1 Year Half/Part-Time (HT) | 900 | $ 3,047.50 |
Reduced Half Time (RHT) | 675 | $ 2,321.00 |
Quarter Time (QT) | 450 | $ 1,612.43 |
Minimum Time (MT) | 300 | $ 1,289.95 |
Note: the value of the Segal Education Awards that members earn for their service is not identified in the budget. Also, the childcare reimbursements provided to eligible full-time members is not included in the budget.
B. Member Support Costs
Consistent with the laws of the states where your members serve, you must provide members with the benefits described below:
- FICA. Unless exempted by the IRS, all projects must pay FICA for any member receiving a living allowance, even when CNCS does not supply the living allowance. Under federal law, the FICA payment rate is 15.3% of the living allowance. Half (7.65%) is paid by the program and half is deducted from the member living allowance FICA payments to cover Social Security and Medicare benefits. If exempted, please note in the narrative. In the first column next to FICA, indicate the
number of members who will receive FICA. Calculate the FICA at 7.65% of the total amount of the living allowance. - Worker’s Compensation. Some states require worker’s compensation for AmeriCorps members. You must check with State Departments of Labor or State Commissions where members serve to determine if you are required to pay worker’s compensation and at what level.
If you are not required to pay worker’s compensation, you must obtain Occupational, Accidental, Death and Dismemberment coverage for members to cover in-service injury or accidents. - Health Care. You must offer or make available health care benefits to full-time members in accordance with AmeriCorps requirements. Except as stated below, you may not pay health care benefits to less-than-full-time members with CNCS funds. You may choose to provide health care benefits to less-than-full-time members from other sources (i.e., non-federal) but the cost cannot be included in the budget. Less-than-full-time members who are serving in a full-time capacity for
a sustained period of time (such as a full-time summer project) are eligible for health care benefits. In your budget narrative, indicate the number of members who will receive health care benefits. CNCS will not pay for dependent coverage.
Unemployment Insurance and Other Member Support Costs. Include any other required member support costs here. Some states require unemployment coverage for their AmeriCorps members. You may not charge the cost of unemployment insurance taxes to the grant unless mandated by state law. Programs are responsible for determining the requirements of state law by consulting State Commissions, legal counsel, or the applicable state agencies and providing this documentation to The Corps Network.
Budget Section II. AmeriCorps Members Positions
Member Positions
Member Positions
Identify the number of members you are requesting by category (i.e., full-time, three quarter time, halftime, reduced half-time, quarter time, and minimum-time) and list under the column labeled # w/o Allow (without CNCS-funded living allowance.) Leave all other columns blank. The total number of member service years (MSY) will automatically calculate at the bottom of the Member Positions chart. The MSY are calculated as follows:
Member Positions Calculation = MSY
Full-time (1700 hours) (members x 1.000) = MSY
Three Quarter Time (1200 hours) (members x 0.7) = MSY
Half-time (900 hours) (members x 0.500) = MSY
Reduced half-time (675 hours) (members x 0.3809524) = MSY
Quarter-time (450 hours) (members x 0.26455027) = MSY
Minimum-time (300 hours) (members x 0.21164022) = MSY
Section III: Administrative/Indirect Costs
Administrative costs are general or centralized expenses of the overall administration of an organization. They do not include particular project costs. These costs may include administrative staff positions. The salaries of senior executives and costs of general services (such as accounting, contracting, and industrial relations) fall under this heading. Administrative costs are related to the organization as a whole as opposed to expenses related to individual departments.
For organizations that have an established indirect cost rate for federal awards, administrative costs mean those costs that are included in the organization’s indirect cost rate agreement. Such costs are generally identified with the organization’s overall operation and are further described in Office of Management and Budget Circulars A-21, A-87, and A-122.
Examples of Administrative Costs include:
- General Liability Insurance
- Accounting and Audit Services
- Internet, Landline and Mobile Telephone Services
- Salaries of employees that are not involved in the production of goods or supply of services
- Disbursing Services
- Rent/Leasing
- Utilities
An indirect cost is defined as an expense (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). Indirect costs are usually constant for a wide range of output, and are grouped under fixed costs.
Examples of Indirect Costs include:
- Equipment rental
- Fuel
- Maintenance
- Security
- Apportion of sales cost
- Business travel expenditure
Options for Calculating Administrative/Indirect Costs (choose either A, B, OR C)
Applicants choose one of three methods to calculate allowable administrative costs:
A. CNCS-fixed percentage rate method OR
B. Federally approved indirect cost rate method OR
C. De minimis method
Regardless of the option chosen, the CNCS share of administrative costs is limited to 5% of the total CNCS funds awarded (and then subsequently actually expended) under this grant. Do not create additional lines in this category.
CNCS-Fixed Percentage Method
Fixed Administrative Costs Option
The CNCS-fixed percentage rate method allows you to charge administrative costs up to a cap without a federally approved indirect cost rate and without documentation supporting the allocation. If you choose the CNCS-fixed percentage rate method (Section IIIA in e Grants), you may charge, for administrative costs, a fixed 5% of the total of the CNCS funds expended.
In order to charge this fixed 5%, the grantee match for administrative costs may not exceed 10% of all direct cost expenditures.
To determine the maximum CNCS share for Section III:
- Multiply the sum of the CNCS funding shares of Sections I and II by 0.0526. This is the maximum amount you can request as Corporation share. The factor 0.0526 is used to calculate the 5% maximum amount of federal funds that may be budgeted for administrative (indirect) costs, rather than 0.05, as a way to mathematically compensate for determining Section III costs when the total budget (Sections I + II + III) is not yet established.
- Enter this amount as the CNCS share for Section IIIA.
To determine the Grantee share for Section III
- Multiply the total (both Corporation and grantee share) of Sections I and II by 10% (0.10) and enter this amount as the grantee share for Section IIIA.
- Enter the sum of the CNCS and grantee shares under Total Amount.
Federally Approved Indirect Cost Rate
If you have a federally approved indirect cost rate and choose to use it, the rate will constitute documentation of your administrative costs, not to exceed the 5% maximum payable by CNCS. Specify the Cost Type for which your organization has current documentation on file, i.e., Provisional, Predetermined, Fixed, or Final indirect cost rate.
Supply your approved IDC rate (percentage) and the base upon which this rate is calculated (direct salaries, salaries and fringe benefits, etc.). It is at your discretion whether or not to claim your entire IDC rate to calculate administrative costs. If you choose to claim a lower rate, please include this rate in the Rate Claimed field.
Attach a copy of your latest proof of the NICRA for your organization.
To determine the total amount of indirect costs allowable under the grant:
- Determine the base amount of direct costs to which you will apply the IDC rate, including both the CNCS and Grantee shares, as prescribed by your established rate agreement (i.e., based on salaries and benefits, total direct costs, or other).
- Multiply the appropriate direct costs by the rate being claimed.
To determine the CNCS share: Multiply the sum of the CNCS funding share in Sections I and II by 0.0526. This is the maximum amount you can claim as the CNCS share of indirect costs.
To determine the Grantee share: Subtract the amount calculated in step b (the CNCS administrative share) from the amount calculated in step a (the Indirect Cost total). This is the amount the applicant can claim as grantee share for administrative costs.
De Minimis Rate of 10% of Modified Total Direct Costs
If you have never had a federally negotiated indirect cost rate and receive less than $35 million in direct federal funding, you may indefinitely use a de minimis rate of 10% of modified total direct costs (MTDC). Additional information regarding what is included in MTDC and use of this option can be found at 2 CFR 200.414(f) and 200.68. If this option is elected, it must be used consistently across all federal awards.
Source of Funds
In the “Source of Funds” table at the end of Budget Section III, enter a brief description of the match. Identify each match source separately. Identify if the match is secured or proposed. Include:
- dollar amount
- match classification (Cash or In-kind) and
- match source (State/Local, Federal, Private, or Other)
for your entire match amount indicated within your budget.
Define any acronyms the first time they are used.
The total amount of Source of Match should equal the Grantee share amount
Valid documentation of match includes:
- Grant award documents from other entities
- Timesheets and in-kind vouchers for services
- Equipment and furnishing receipts for donated items
- Leases and other sources documenting the value of donated space
- Copies of receipts given to donors of goods and services
Subgrantees must meet an overall increasing match requirement:
AmeriCorps Funding Year | 1,2,3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
---|---|---|---|---|---|---|---|---|
Grantee Share Requirements | 24% | 26% | 30% | 34% | 38% | 42% | 46% | 50% |
Programs are responsible for meeting the matching amounts in their negotiated grant awards and approved budgets. The amount of match that your organization proposes may exceed the minimum match required; however, the proposed amount will be required by the end of the grant year. All programs are required to raise funds from other sources—e.g., non-federal and the private