Best Practices in Budget Development

for FY 2021 AmeriCorps

Indian Tribes applicants

July 7, 2021
Budget Function

2

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
Prepare 

budget

Translate 

strategy 

to dollars

Decide a 

strategy

State 

goals and

objectives

Determine 

needs

Prepare 

budget

Budget Management Process

3

Modify

budget

Compare 

budget to 

actual

expenses

Set 

budget 

control

process
Budget Basics

4

•Realistic

•Consistent 

•Flexible

•Realistic scope

•Appropriate detail 

•Competitive proposal

•Compliance

•Effective delivery
Budget Narrative

5

• Follow instructions in NOFO

• Include 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

6

• Lobbying

• Entertainment and alcohol 

• Fundraising

• Expenses not tied to program objectives

• Costs that constitute waste, fraud, and abuse

• Unreasonable from “prudent person” 

perspective

• Costs with no logical basis

- Examples
Match Requirements

7

Minimum grantee share increases gradually. 

By year 10, grantee matches one grantee dollar

for every AmeriCorps dollar.

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 secure additional resources required to operate the program.
Match Requirements

8

•Necessary

•Reasonable

•Allowable

•Allocable

•Compliant

•Documented
* Note that eGrants identifies the 

AmeriCorps share as “CNCS Share”.

Budget Narrative Structure

Separated by major categories and

divided into AmeriCorps* 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

 Member gear

 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

10

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
Purpose Calculation Total Amount CNCS Share Grantee Share

ED and PD travel to CNCS-Sponsored 

Grantee Training (Washington DC)

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

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

$2,498 $2,498 $0 

Program site monitoring and oversight 40 trips, average 29.7 miles round trip @ $0.60/mile 

(mileage rate determined by organizational policy)

$713 $0 $713 

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 $5,165 $3,475 $1,690

Purpose Calculation Total Amount CNCS Share Grantee Share

ED and PD travel to CNCS-Sponsored 

Grantee Training (Washington DC)

2 staff $2,498 $2,498 $0 

Program site monitoring and oversight 40 trips, average 29.7 miles round trip @ $0.60/mile $713 $0 $713 

Regional training conference (PD and 

PC)

(airfare - $498; Lodging - $132/night, 2 nights; per diem 

- $71/day, 3 days; ground transportation - $50) x 2 staff

$1,954 $977 $977 

Member Travel as part of workday 

(between worksites)

Avg 20 mi/week, 50 weeks, 38 members, $0.60/mile 

(mileage rate determined by organizational policy)

$22,800 $11,400 $11,400 

Subtotal $27,965 14,875 13,090

Budget Narrative Section I - Sample

1. Staff Travel
Purpose Calculation Total Amount CNCS Share Grantee Share

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

Computers for new staff $2,200 $1,100 $1,100

Member Supplies $185/member, 38 members $7,000 $2,800 $4,200

Subtotal $9,600 $3,900 $5,700

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 for new staff 2 @ $1,100/each $2,200 $1,100 $1,100

Member Supplies Avg $185/member $7,000 $2,800 $4,200

Subtotal $12,644 $6,864 $5,780

Budget Narrative Section I - Sample

E. Supplies
Member Costs

13

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

14

B. Member Support Costs

Purpose Calculation Total Amount CNCS Share Grantee Share

FICA for Members: total member living 

allowances of $817,000 $817,000 @ 7.65% $62,501 $38,750 $23,751 

Health Care (provided by Indian Health 

Services) covered off budget $0 $0 $0 

Worker’s Compensation 2% of total member living allowances $16,340 $10,131 $6,209 

Subtotal $78,841 $48,881 $29,960

Purpose Calculation Total Amount CNCS Share Grantee Share

FICA for Members: total member living 

allowances of $817,000 $817,000 @ 5% $40,850 $38,750 $2,100

Health Care (provided by Indian Health 

Services) $458/month for 38 members $208,848 $0 $208,848

Subtotal $249,698 $38,750 $210,948
Administrative and Indirect Costs

15

Section III. (Choose 1 of these 3 methods)

A.Corporation Fixed Percentage

• 5% of the total AmeriCorps funds expended

• No documentation required

B. Federally Approved Indirect Cost Rate

• Requires approved rate from Federal 

government

• Approved rate constitutes documentation

C.10% De Minimis Rate
Budget Narrative Section III –

Sample Entries
Source of Funds
Source of Funds – Sample Entry
Budgeting Tips

19

• 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...

20

• Established or renewed your SAM (System 

for Award Management) registration? 

• Emailed your Operational and Financial 

Management Survey?

• Submitted your single audit and 990? 

• Entered your Negotiated Indirect Cost 

Rate Agreement details in eGrants?
eGrants Messages

21

• Warning: Can submit but budget may not 

be compliant

• Error: Cannot proceed until data is edited

eGrants technical assistance

AmeriCorps Hotline: 800-942-2677
Quality Assurance Check

22

• Follow instructions in NOFO

• Include allowable, reasonable, necessary, 

and allocable costs, as defined by 2 CFR 200

• Estimate resources needed to achieve 

program goals

• Organize narrative to fit budget categories

• Provide adequate descriptions

• Check your math
Happy 

Budgeting

and

Good Luck!