1. PPG Budget Development
Larry Maurin, Tim Wilhite, Crystal Robinson,
Destinee Cooper, Angela Mendiola
October 31, 2018

2. Budget Basics Must be driven from work plan needs
Must include only costs that are necessary, reasonable, eligible, and allocable
Must conform to 2 CFR Part 200 and 40 CFR Part 35B
Start with good estimates and use the best tools possible
EPA can always help you link to the regulations and interpret them when asked. Budgets can in no way shape or form be arbitrary. They must be inextricably linked to your work plan. If you expect to receive funding for 1.5 FTE, your work plan must document that amount of work. The Work Plan actually drives the budget, not the other way around.
Angela

3. Required Regulations Tribal Policies and Procedures
Uniform Standards: Omni-Circular: 2 CFR Part 200, Subpart E “Cost Principals”
Is the cost allowable, reasonable, and allocable?
40 CFR Part 35 Subpart B – if you have a continuing Environmental Program Grant
Other Program requirements
Other Considerations:
Is this activity in your final and approved ETEP?
Do you have an approved QAPP or Nonpoint Source Management Plan?
Check with program offices to ensure eligibility.
Angela

4. 2 CFR §200, Subpart E Cost Principles
Key Factors Affecting Allowability of Cost (§ )
Necessary & Reasonable
Conform to any limitations or exclusions
Consistent with policies & procedures
Consistent treatment (federal & nonfederal)
Adequately documented
Angela

5. ALLOWABLE under Cost Principles 2 CFR Part 200
Examples of Unallowable Costs:
alcohol
fines/penalties
management fees
social activities
lobbying
fund raising
Angela

6. REMINDER Food / Light Refreshments
Administrative Condition within award
Approved by EPA
Described in approved workplan and identified in budget
Not allowed for recipient staff meetings & similar day-to-day activities
Angela

7. BEST PRACTICES
Consistent use of budget categories (e.g., leases are placed under “other” category)
Agree on a template/format to be used by programs within the Tribe
Check with Tribal finance office for the most current indirect cost rate
Review of budgets by Tribal finance office before submittal to EPA
Angela

8. BEST PRACTICES (cont)
Ensure budgets comply with Tribe’s policies/procedures (it’s okay if Tribe’s procedures is more stringent than federal requirements)
Make your best projection for the upcoming year (e.g., submit travel/training revisions to EPA Project Officer later as activities/events become more definitive)
Plan ahead, don’t wait until the 4th Quarter to re-budget funds and/or make large unplanned purchases.
Tribal Program develop its own system/report (e.g., Cuff Accounts) to manage/monitor budgets & actual expenditures
Angela

9. BEST PRACTICES (cont)
Review budget vs actual reports regularly (e.g., monthly, bi-monthly, quarterly); schedule regular check-ins with finance staff to reconcile discrepancies between Program’s report(s) & finance office’s accounting report(s)
If you’re unsure, contact your EPA Project Officer and/or Grants Specialist
When communicating with EPA, include both your EPA Project Officer and Grants Specialist
Angela

10. How to do a budget  
Angela

11. SF424 Budget Categories (Which one does not belong?)
Personnel
Fringe
Travel
Equipment
Fuel
Supplies
Contractual
Construction
Other
Indirect
All budgets should contain all line items, even when they are $0. That helps POs know you didn’t leave anything out accidentally. Fuel is not a line item. We might want to discuss the difference between supplies, other and equipment. Do tribes heed the federal definition of equipment (over 5k?) or their own definition? Is it OK to show computers as equipment even though we (EPA) consider them supplies? When you put line items in spreadsheets, you may as well put them in the same order we see on SF-424 forms. That makes it easier to lift numbers from your spreadsheets and drop them into the forms.
Angela

12. Types of Budgets Budget Detail Budget Justification
SF-424 Section A - Budget Summary
SF-424 Section B - Budget Categories
Consolidated Budget
Consolidated Budget Detail
Angela

13. Numbers Everywhere! In your work plans In your SF-424 forms
In your budget summary
In your budget detail
In your CWA 106 stuff
In your GAP stuff
In your CWA 319 Stuff
In your nightmares!
Tim-Unfortunately, all of these have to match for the grant to be awarded.

14. How do I figure out the matching funds requirement?
For PPG programs that require a match, percentage match is Total Program Cost (Total Program Cost = Federal Amount + Match) and not percent of total Federal Amount
Even in PPGs, GAP does not require matching funds
For programs that require a match of more than 5 percent (ex. CWA 319 or CAA 105), inclusion in a PPG reduces match requirement for those programs to 5 percent of total project cost
In many cases, tribal or third-party in-kind contributions can be used as a match (See regulations at 2 CFR ). Make sure things are documented appropriately for in-kind contributions.
Larry-will define “program costs” and “federal amount”.
Tribes should check with EPA to ensure appropriate documentation for contributions.

15. SF-424A
Angela

16. Hyperlink to SF-424 A and B forms and have the PDFs preloaded in Adobe during presentation. Showing adobe instead of having the forms in PowerPoint shows up clearer. Bottom line is that column 5 on the SF-424 B needs to be correct. There are many ways to fill out columns 1-4 correctly.
Angela, Larry can fill in if needed to talk about match; (we will fix the labels in this example)

17. Angela and Tim SAMPLE CONSOLIDATED PPG BUDGET
ENVIRONMENTAL OFFICE FY-2019 PROGRAMS BUDGET
GAP
CWA 106
Federal
Match
Total
CWA 319
TOTALS
PERSONNEL
870.00
Environmental Director (35/hr.)
0.00
Environmental Specialist (20/hr.)
Solid Waste Director (25/hr.)
SW Crew Coordinator (16/hr.)
640.00
Natural Resources Manager (20/hr.)
FRINGE 34%
739.00
296.00
TRAVEL
Water Quality Mileage /Lab Sample delivery (estimated miles/ year/ 10,872mile = (24 trips from Paradise - Oaks to Redding= 8,256 and 109mi= 2616mi/ trips from Paradise -Redding to Paradisee
= 5,500 mi / 25mi/gal= 220 $836/ POV Rate (.54c/mi)= 2,970= Total costs; $3806
Travel to Wetlands Training: San Diego- 5 nights
2= $1,670/ Flight Roundtrip airport parking, 12= 2= $120/ 1 Rental car- & insurance- $435- Fuel= 150 (40mi/gal) *3.80/gal= $14.25/ POV Mileage
Staff= $456.84/ Staff- =
$512/ Total: 2 Staff= $3,708
Annual Conference: $222= $888/ Perdiem Fuel:
532mi/25mi/gal= $83/ = $2,534
North Coast Water Coalition Meetings- 369mi/ 40=
= 36$Fuel; Lodging 2 202$/ Perdiem $148=
2 Meetings= $772
Sacramento Water Meetings: 423mi/40mpg=
$41.25/ Lodging $128/ Perdiem-$64/ Parking 20$= $
SUPPLIES
Office Supplies- Soap, towls, cleaning supplies, TP, trash bags, etc..
974.00
200.00
Field Supplies; Write in the Rain Notebooks, pens, boots, flash lights, rain gear.
500.00
Angela and Tim

18. Outreach Supplies; Tee-shirts (41@12.20ea)= $500
500.00
0.00
YSI Calibration Solutions- Conductivity 120*2= 240 PH $74 * 2= 148+Turbidity $122 * 2=244+ Replacment Probes $150 * 3=450=
BioswaleGravel Supplies, piping, soil-
EQUIPMENT
SW Equipment Roof Over Recycling in Paradise
OTHER
ACOE Wetlands Delineation Training = 2 $1300
Other Training: Excel Advanced Training- Redding; 15o Registration
@ 2 Staff-
vehicle fuel - 12,820.5/25= gal/mi)= 2000
250.00
vehicle insurance (73$ per month)
220.00
660.00
vehicle maintenance- Tires, oil Change, fluid inspection
Annual vehicle registration
25.00
75.00
Cell phone, Internet, security
350.00
water and electricity
550.00
copier and printing
750.00
CONTRACTUAL
Water Resources Engineer- Lab Feasibility Study
Water Resources Engineer - Data Analysis
QAPP update CWA 106
BMI Sample Analysis / 4 $379= $1516
Water Quality Analysis TC/ Ecoli= 24samples* $50= $1200/ Total N 24samples*$85= $2040/ NH samples* $40= $960/ OPo4- 24*30=
$730/ Total P- 24samples*$40= 960
BioSwale Engineering & Design
Labor Biosawle
Legal Services - Treatment As State
TOTAL DIRECT
INDIRECT (excludes contractual and equipment)
414.00
TOTAL PROJECT COST
Use this format as an example of one of the best ways to show match. Match can be included as a separate row, but description of what the match is being used for needs to be sufficient, including cost categories.
Need to round to whole dollar amounts, no cents! Cents need to be gone, not hidden.
Angela and Tim

19. Budget Checklist
PERSONNEL - List all staff positions for the project by title. Give hourly salary rate, number of hours allotted to the project, and total cost for the project period.
FRINGE BENEFITS - Identify the percentage used for your calculation and what benefits are included.
TRAVEL - Indicate the budgeted travel's purpose, the destination of each trip, the duration of the trip and the number of travelers. Specify the mileage, per diem, and other costs for each type of travel, such as lodging, common carrier transportation, etc.
EQUIPMENT - Identify each item to be purchased which has an estimated acquisition cost (including shipping) of $5,000 or more per unit and a useful life of more than one year. Items with a unit cost of less than $5,000 are deemed to be supplies. Please provide a detailed justification and identify the appropriate work plan component and/or commitment number, and explain how you arrived at your estimates. If applicable, indicate why it is more cost effective to purchase rather than lease.
SUPPLIES - “Supplies” means all tangible personal property, other than “equipment”. The detailed budget should identify categories of supplies to be procured (e.g., office supplies), and their cost. If requesting items previously purchased, explain why they are being purchased again. Explain how you arrived at your estimates.
CONTRACTUAL - Identify each proposed contract, procurement method, and specify its purpose and estimated cost. Provide information on how the estimates were arrived at.
OTHER - Include items here which do not fit in the other specific budget categories. Give a brief description of the expense and how you arrived at the estimate. *Grantees who own their building are not entitled to reimbursement for rent; however, they may directly charge for utilities, insurance, depreciation and maintenance costs using a cost allocation plan. If an expense is being shared with other programs, please provide the cost share formula.
INDIRECT COSTS - If indirect charges are budgeted, indicate the approved rate and base. The base amount is usually total direct costs, less capital expenditures and passthrough funds. Passthrough funds are normally defined as major subcontracts, payments to participants, stipends to eligible recipients, and subgrants, all of which normally require minimal administrative effort. However, please refer to your negotiated agreement for specific guidance. Provide a copy of your most recent indirect cost rate agreement that qualifies. For budgeting purposes only, the rate cannot have expired more than 3 years prior to the proposed project start date for the grant you are applying for.
Angela will talk about the checklist.
Supplies vs Equipment vs Other

20. How To Make Things Add Up
Start with good commitment cost estimates
Itemize over-night travel events
Keep your finger out of the wind! No guessing!
Think and scribble
Review utility bills
Review vehicle mileage logs and maintenance bills
Do some math!
Use a good tool and a good system
Do NOT rush budget or work plan development
It all starts with accurately estimating commitment costs. If you get that right, your foundation is strong and everything else will fall into place fairly quickly. Go to the GSA web site to find hotel and per diem rates. Use online travel tools to estimate flight costs. Mention the need to put a good deal of effort into developing good work plans and budgets.
Angela and maybe Tim

21. Tips! Develop work plans and companion budgets accurately overlap
Don’t include cents!
Realize you may need to make small adjustments
Estimations are okay and need as much information as possible to just the awarding of funds, but can always be amended.
Tim

22. Budget Basics Must be driven from work plan needs
Must include only costs that are necessary, reasonable, eligible, and allocable
Must conform to 2 CFR Part 200 and 40 CFR Part 35B
Start with good estimates and use the best tools possible
Reviewed
Tim

23. Crystal Robinson, Quartz Valley Indian Res
Crystal Robinson, Quartz Valley Indian Res. (Budget Development from the Ground UP)