BUDGET PREPARATION

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BUDGET PREPARATION

• Presented
• By
• Sue Muzillo
• Finance/Grant Unit Coordinator

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Budgets Its All in the Numbers!

• The Budget Detail document is developed based
  upon function
• What is the function?
• Who will perform/provide the function?
• How much will it cost?

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Budgets Its All in the Numbers!

• Only the approved function codes displayed for
  each grant application type may be used
• Refer to the detailed list of function codes
  provided in the Budget Pages Section in the MEGS
  application and MDE School Accounting Manual
• Function Code List is available in MEGS and on
  our website

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Function Codes/Description

• Organize and enter budget information by
  function code
• Provide sufficient description to determine the
  function code is appropriate as used (e.g.
  Function 132, the description is Instructors for
  GED or preparation/HSC)

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Function Codes/Description
Function Codes/Description

• Remember!
• Staff reporting to an individual assigned to a
  specific function are also identified with that
  function (a clerical person assigned to a
  supervisor under Function 226 has the same
  function code)

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Function Codes/Description
Function Codes/Description

• Function codes denote either direct program costs
  or administrative costs
• Correct identification of function codes is
  critical to ensuring that the 5 Federal
  administrative cost limit is not exceeded

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Budget Categories

• Salaries
• Benefits
• Purchased Services
• Supplies and Materials
• Capital Outlay
• Other

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Salaries

• For each function code
• Enter the total cost for salaries in that
  function by common assignment in the Salaries box
  
• Example, Function Code 226 Supervision of
  Instruction, enter the total cost for the
  Supervisor, then enter the total cost for the
  support staff assigned to that function

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Salaries

• When entering salary costs you may enter either
  an FTE equivalent or, the total number of hours
  that individual or those individuals are assigned
  to that function
• The salary box is only used for staff who are on
  the payroll of the applicant agency

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Benefits

• For each function code
• Enter the total cost for benefits in that
  function by common assignment in the Benefits box
• Example, Function Code 226 Supervision of
  Instruction, enter the total cost for the
  Supervisor, then enter the total cost for the
  support staff assigned to that function

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Benefits

• For staff who are hourly with no benefits, the
  Benefits box should be left blank

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Purchased Services

• These are services paid through a contract or
  purchase arrangement not on payroll of the school
  district
• These would be entered for the function code they
  support

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Purchased Services
Purchased Services

• They should have an accompanying description
  (e.g. Function Code 227, the description would be
  CASAS scoring services for x number of
  participants)
• The total cost should be entered in the purchased
  services box

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Supplies and Materials

• This category consists of items that are
• Consumed, worn out or deteriorated in use
• Includes classroom materials pens, paper,
  pencils, workbooks, textbooks, computers,
  laptops, and computer software

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Capital Outlay

• Occasionally, capital outlay expenditures are
  approved for
• Purchase of equipment
• Purchase of buildings and land
• Improvements to capital assets that will
  materially increase their value or useful life

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Capital Outlay
Capital Outlay

• Expenditures must be fully described and
  explained
• Purchase must be approved in advance
• Require an inventory sheet be provided with the
  final year-end grant report

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Other Expenditures

• This category is used for goods and services not
  otherwise classified
• It includes payments of dues and fees,
  memberships, travel expenses not included as part
  of a conference or training, and outgoing
  transfers to other school districts

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Different Parts of the Budget

• Part 4 Budget Detail page for EL Civics grant
• Part 5 Total Adult Education Budget Summary
  all sources of funding
• Part 6 Budget Detail page for ABE instruction

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Different Parts of the Budget
Different Parts of the Budget

• Part 7 Budget Detail page for Institutional
• Part 8 Budget Detail page for Anticipated
  Tuition Fees
• Part 9 Budget Detail page for Anticipated Local
  Share

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WRAP UP

• Presented by
• Cliff Akujobi, Manager
• Office of Adult Learning

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Final Steps

• Re-read all sections of the narrative, look for
  information that is extraneous to what is being
  requested and delete it.
• Check for misspelled words, typographical errors,
  etc.
• Check the budget document to make sure that the
  funds requested support the planned program
  activities.

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Final Steps
Final Steps

• Check to make sure everything is included, all
  costs displayed, and the descriptions
  comprehensive enough to determine if costs are
  reasonable and appropriate.
• Only provide attachments if the instructions
  allow it, provide them where instructed, and in
  the format required.
• Make sure to have the business or finance office
  review the budget.

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The Most Common Mistake(s) Made

• Trying to do it all yourself!
• Send the application package to someone else to
  check
• Did you say what you thought you said
• Does the document look like you thought it did
• Did you address and include all required
  material/supporting documentation.

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Questions
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Workforce Investment Act
Bidders Conference 2009
Thanks!