Best Practices in Budget Development

FY 2020 AmeriCorps State & National Grant Competition
Budget Functions

An approved AmeriCorps budget is part of 

the grantee’s contractual obligation and:

A financial blueprint

Helpful to ensure compliance 

A tool for measuring progress and 

monitoring
Budget Management Process

2. State goals 

and objectives

4. Translate 

strategy to dollars 

6. Set budget

control process

7. Compare budget 

to actual expenses

3. Decide a 

strategy

5. Prepare budget

8. Modify budget

1. Determine

needs
Budget Basics

Realistic

Consistent 

Flexible

Realistic scope

Appropriate detail 

Competitive proposal

Compliance

Effective delivery
Budget Narrative

Follow instructions in NOFO

 Includes allowable, reasonable, necessary, and 

allocable costs, as defined by 2 CFR 200:

www.ecfr.gov

Estimate resources needed to achieve program goals

Organize narrative to fit budget categories

Provide adequate descriptions

 Check your math
Unallowable Costs

Examples:

Lobbying

Entertainment and alcohol 

Expenses not tied to program objectives

Costs that constitute waste, fraud, and abuse

Unreasonable from “prudent person”

perspective

Costs with no logical basis 
Match Requirements

Minimum grantee share increases gradually. 

One dollar for every CNCS dollar by year 10.

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10

Overall

Minimum

Share

24% 24% 24% 26% 30% 34% 38% 42% 46% 50%

There are no specific match requirements for fixed-amount grants.

Grantees pay all program costs over that provided by CNCS.
Budget Structure

Separated by major categories and

divided into CNCS and Grantee shares

Direct Costs Indirect or Administrative Costs

Attributable to Program Goals For Common Organizational Goals

Examples: 

 Program staff salaries and fringe 

benefits

 Member and staff travel

 Uniforms

 NSCHC

 Member living allowances

Examples: 

 Management staff salaries and fringe

 Accounting and legal services

 Office equipment

 Rent and leases

 General liability insurance
Program Operating Costs

Section I. 

A.Personnel Expenses

B.Personnel Fringe Benefits

C.Travel

1.Staff Travel

2.Member Travel

D.Equipment

E.Supplies

F.Contractual and Consultant Services

G.Training

1.Staff Training

2.Member Training

H.Evaluation

I. Other Program Operating Costs
Budget Narrative Section I – Sample Entry 1

Purpose Calculation Total Amount CNCS Share Grantee Share

CNCS-Sponsored Grantee Training 2 staff $2,930 $2,930 $0

Program site monitoring and oversight 50 trips, average 25 miles round trip @ $0.60/mile $750 $0 $750

Regional training conference (PD and PC) (airfare - $450, Lodging - $150/night, 2 nights, per diem -

$75/day, 3 days, ground transportation - $50) x 2 staff $2,050 $1,073 $977

Member Travel (between worksites) Avg 20 mi/week per member, 50 weeks, 38 members, 

$0.60/mile (mileage rate determined by state policy) $22,800 $22,800 $0

Subtotal $28,530 $26,803 $1,727

1. Staff Travel

Purpose Calculation Total Amount CNCS Share Grantee Share

ED and PD travel to CNCS-Sponsored 

Grantee Training (Washington DC) –

includes attendance at pre-con events 

(airfare - $600, Lodging - $177/night, 3 nights, per diem -

$71/day, 4 days, ground transportation - $50) x 2 staff $2,930 $2,930 $0

Program site monitoring and oversight 50 trips to program sites, average 25 miles round trip @ 

$0.60/mile (mileage rate determined by state policy) $750 $0 $750

Regional training conference (PD and PC) (airfare - $450, Lodging - $132/night, 2 nights, per diem -

$71/day, 3 days, ground transportation - $50) x 2 staff $1,954 $977 $977

Subtotal $5,634 $3,907 $1,727
Budget Narrative Section I – Sample Entry 2

Purpose Calculation Total Amount CNCS Share Grantee 

Share

Office Supplies Avg $40/month $400 $0 $400

Computers $2,200 $2,200 $0

Member Supplies $185/member, 38 members $7,000 $3,200 $3,800

Subtotal $9,600 $5,400 $4,200

E. Supplies

Purpose Calculation Total Amount CNCS Share Grantee 

Share

AmeriCorps member service gear (includes 

the AmeriCorps Logo) 38 members, 3 shirts @ $26/shirt $2,964 $2,964 $0

Office Supplies Avg $40/month $480 $0 $480

Computers and peripherals for new staff 2 @ $1,100/each $2,200 $2,200 $0

Member Supplies Avg $185/member $7,030 $4,030 $3,000

Subtotal $12,674 $9,194 $3,480
Member Costs

Section II. 

A.Living Allowance

B.Member Support Costs

 FICA

 Health Care

Worker’s Compensation

 Unemployment Insurance

 Other Member Support Costs
Budget Narrative Section II – Sample Entry

Purpose Calculation Total Amount CNCS Share Grantee 

Share

FICA for Members: total member living 

allowances of $684,000 $684,000 @ 5% $34,200 $0 $34,200

Health Care Estimated 35 FT (of 38) and 8 MT (of 10) 

members @ $400/month $206,400 $103,200 $103,200

Subtotal $240,600 $103,200 $137,400

Purpose Calculation Total Amount CNCS Share Grantee 

Share

FICA for Members: total member living 

allowances of $684,000 $684,000 @ 7.65% $52,326 $0 $52,326

Health Care Estimated 35 FT (of 38) members @ 

$400/month $168,000 $84,000 $84,000

Worker’s Compensation for all members 

(provided by host site, off-budget) $0 $0 $0

Subtotal $220,326 $84,000 $136,326

B. Member Support Costs
Administrative and Indirect Costs

Section III. 

Three methods to recover administrative costs:

1. 5/10 Percent Fixed Option

 5% of the total of CNCS funds expended

 No documentation required

2. Federally Approved Indirect Cost Rate Method

 Requires approved rate from Federal government

 Approved rate constitutes documentation

3. 10% De Minimis Rate
Budget Narrative Section III – Sample Entries
Source of Funds
Source of Funds – Sample Entry
Budgeting Tips

 Meet CNCS cost guidelines

 Maximum and minimum living allowances

 ≤ Maximum Cost per MSY

 Required match and match sources

 Include

 Required expenses

 Adequate/accurate calculations and explanations

 Allowable costs only 

 Align with stated program goals
Have you...

Established or renewed your Central 

Contractor Registry at www.sam.gov? 

Submitted your single audit and 990? 

Entered your Negotiated Indirect Cost 

Rate Agreement details in eGrants?
eGrants Messages

Warning: Can submit but budget may not 

be compliant

Error: Cannot proceed until data is edited

eGrants technical assistance

National Service Hotline: 800-942-2677

Can’t get enough?

Presentation recording available

https://www.nationalservice.gov/buildyour-capacity/grants/fundingopportunities/2020/americorps-state-andnational-grants-fy-2020#tech_assistance
Until next time...