1. Grants Management Professional Learning Community
Session #3: Budget Revision

2. Importance of Budget Planning and management tool
Helps ensure compliance and future funding
Tied to reimbursement requests and financial reports

3. Applying for new funding Applying for a new year of funding
Budget Stages
Initial Budget
****************
Initial budget submitted to the granting agency for approval
Applying for new funding
Applying for a new year of funding
Adjustment/ Amendment **************** Changes during negotiation of the initial budget BEFORE application is approved
Budget Revision **************** Requests to change the approved budget

4. FAQs
When are budget revisions required? Need for budget amount in additional line items (cost categories) Increasing a line item by more than 10% for State; Increasing a line item by more than 10% of total budget for Federal Adding new activities even if it does not change the line item total or budget amount Distributing unallocated funds

5. Common Missing Information in BUDGETS
FAQs
Common Missing Information in BUDGETS
What is the FTE for staff positions?
Estimated amount per laptop?
How many laptops?
What type of software?
Who is attending what trainings?
What is the purpose of the training?
How does this item support your need/design?

6. Budget Revision Tips
Have a copy of the latest approved budget before starting budget revision
REVIEW most current budget to actual (YTD) report before starting budget revision
Date your revisions-both in budget summary and narrative
Use strikethrough, rather than deletion of obsolete budget items in narrative
Aim for no more than 1 revision submission per quarter

7. Station Rotations #1 Group discussion of cost principles with Sheena
#2 Team activity – hands on budget revision exercise
#3 Individual review of grant budget and upcoming revision issues with Heather

8. What Are the Basic Considerations of Cost?
Reasonable
Allowable
Allocable

9. Requirements of Budget Items*
ALLOWABLE
REASONABLE
ALLOCABLE
Know average costs & determine if ordinary and prudent person would pay such cost
Know what your grant allows, disallows, and requires
Know and understand budget cost objectives A cost is allocable to a particular cost objective if the goods/services involved are chargeable/assignable to such cost objective in accordance with relative benefits received/other equitable relationship.
Audience Participation: Has any requested a revision and it was disallowed? What was it?
What can happen if you don’t know your budget cost effective? Give example.
*Refer to Governing Documents from Session 1 and Charts of Accounts from Session 2