Attachment II.pdf

ETA Advisory File Text

II-1 Attachment II Senior Community Service Employment Program SCSEP Budget Narrative Instructions Grantees must provide a detailed budget narrative that includes the information outlined below. Please note that consistent with the instructions in this TEGL State and Territory Grantees budget narratives will reflect all 12 months of funding for PY 2024 as allotted through this TEGL see Attachment 1A while current National Grantees budget narratives will reflect only the first four months of funding as allotted through this TEGL see Attachment 1C for non-minority national sponsors or 1E for minority national sponsors . 1. Detailed Description of Costs on SF-424A Budget Information Form Section 6 Object Class Categories . Provide a detailed description for each line item on the SF-424A and ensure that each line item in the Budget Narrative indicates the same dollar amount as on the SF-424A. a. Personnel. R efers to wages salaries paid to employees of the grantee who are directly involved in grant implementation. This line item does not include personnel hired by the sub-grantee those costs are included in the Contractual line item. Provide the following information i. Position Include titles for all SCSEP staff positions and they must match the information provided in the program narrative. If there is more than one employee in the same position at the same salary level and employed for the same period of time enter each employee on a separate line. ii. Percent of Time List the percent of time each staff person will devote to the project. For example if a staff person were full-time but only spending 75 percent of their time on the project indicate .75 FTE full-time equivalent . iii. Monthly Salary Enter the average monthly salary not the average full-time salary. Since pay periods vary from organization to organization the average would be the annual total salary divided by 12 months. If you expect that an employee will receive a salary increase during the grant period figure the average monthly salary for the entire year based on the sum of the two salary figures for the number of months the employee will receive each salary. iv. Number of Months Enter the projected number of months an employee will fill the position during the grant period. v. Cost The total cost equals Percent of Time times Monthly Salary Wage times Number of Months . b. Fringe Benefits. Refers to the cost of benefits paid to the personnel on the grant including the cost of employer s share of FICA health insurance workers compensation and leave. Provide a detailed list of the benefits provided to employees as well as the fringe benefit percentage i. Positions that receive fringe benefits. ii. Benefits The type of benefits that you will provide employees. If multiple benefits are included in the base amount list each of them in a separate row. II-2 iii. Rate Include the fringe benefit rate used to calculate benefits for each source. If the list of fringe benefits is itemized list the source for each item. iv. Base Amount Enter the Gross Salary used against the rate for the salary or salaries you are calculating. v. Cost The total cost is Rate times Base Amount . c. Travel. Refers to personnel travel costs that are reasonable and necessary to effectively manage and carry out grant activities provide oversight or measure program effectiveness such as mileage plane fare meals and incidentals and lodging . When air travel is necessary obtain it at the lowest possible customary standard coach or equivalent fare . You may charge travel costs on an actual basis or on a per-diem or mileage basis in lieu of actual costs. This line item does not include a sub-recipient s travel expenses those costs are included in the Contractual line item. Provide a narrative describing the purpose of the travel and the assumptions used to generate the travel amounts. Enter each type of travel cost mileage per diem etc. on separate lines. i. Item Briefly describe the travel item you will charge to the grant. Remember to enter travel for contracted employees under the Contractual category. ii. Number of Staff Provide the number of staff who will charge this type of travel. iii. Number of Units Provide the number of units you estimate you will charge to the grant per traveler staff for the year. iv. Cost per Unit Provide the cost of the travel item per traveler. If calculating based on mileage enter the cost per mile. v. Cost The total cost is Number of Staff times Number of Units times Cost per Unit . d. Equipment. Identify each item of equipment you expect to purchase that has an estimated acquisition cost of 5 000 or more per unit or if your capitalization level is less than 5 000 use your capitalization level and a useful lifetime of more than one year see 2 CFR 200.1 for the definition of Equipment . List the item quantity and the unit cost per item. Items with a unit cost of less than 5 000 are supplies not equipment. In general we do not permit the purchase of equipment during the last funded year of the grant. Use of grant funds to purchase equipment with a unit cost of 5 000 or more requires prior to purchase a subsequent amendment to the grant award for special review and approval from the grant officer. a. Supplies. Refers to all consumable materials costing less than 5 000 per unit such as copy paper pens and pencils computers any training materials agreements for evaluating the grant or providing training . Include the total supply costs of all sub- grant contracts in this line item. Charge supply purchases to the grant at their actual prices after deducting all cash discounts trade discounts rebates or allowances. Include any necessary shipping and delivery costs. Lump supplies under larger categorical headings and provide detailed information on computations justifying the respective amounts. Indicate the basis for all estimates. g. Contractual. Under the Contractual line item delineate contracts and subawards separately. Contracts are defined according to 2 CFR 200.1 as a legal instrument by which a non-federal entity purchases property or services needed to carry out the project or program under a federal award. A subaward defined by 2 CFR 200.1 means II-3 an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal program. For each proposed contract and subaward specify the purpose and activities to be provided and the estimated cost. h. Construction. SCSEP regulations typically do not allow expenditures for construction 20 CFR 641.850 e . i. Other. Refers to items that do not fit under any of the other cost categories such as rent utilities supportive services and training tuition costs. If you have items under this category itemize them along with an explanation and justification for the items. j. Total Direct Cost. The sum of lines a through h. k. Indirect Cost. If you include an amount for indirect costs through a Negotiated Indirect Cost Rate Agreement or De Minimis on the SF-424A budget form then include one of the following a If you have a Negotiated Indirect Cost Rate Agreement NICRA provide an explanation of how the indirect costs are calculated. This explanation should include which portion of each line item along with the associated costs are included in your cost allocation base. Also provide a current version of the NICRA. or b If you intend to claim indirect costs using the 10 percent de minimis rate please confirm that your organization meets the requirements as described in 2 CFR 200.414 f . Clearly state that your organization does not have a current negotiated including provisional rate and is not one described in 2 CFR Part 200 Appendix VII D 1 b . Applicants choosing to claim indirect costs using the de minimis rate must use Modified Total Direct Costs defined by DOL below as their cost allocation base. Provide an explanation of which portion of each line item along with the associated costs are included in your cost allocation base. Note that there are various items not included in the calculation of Modified Total Direct Costs. See the definitions below to assist you in your calculation. Modified Total Direct Cost MTDC Definition To avoid a serious inequity in the distribution of indirect costs DOL defines MTDC as all direct salaries and wages applicable fringe benefits materials and supplies services travel and up to the first 25 000 of each subaward or subcontract regardless of the period of performance of the subawards and subcontracts under the award . MTDC excludes equipment capital expenditures charges for patient care rental costs tuition remission scholarships and fellowships participant support costs and the portion of each subaward or subcontract in excess of 25 000. You will also note that participant support costs are not included in modified total direct costs. Participant support costs are defined below. II-4 Per 2 CFR 200.1 Participant Support Costs means direct costs for items such as stipends or subsistence allowances travel allowances and registration fees paid to or on behalf of participants or trainees but not employees in connection with conferences or training projects. Indirect-type costs such as top management salaries financial oversight human resources payroll personnel auditing costs accounting and legal etc. used for the general oversight and administration of the organization must not be classified as direct costs these types of costs are recovered as part of charging the de minimis or NICRA rate. l. Totals. The sum of lines i and j. 2. Participant Wages and Fringe Benefits. You must clearly list both the percentage and total funding dollar amount allocated to participant wages and fringe benefits as defined at 20 CFR 641.565 in the appropriate section of the SF-424A. The SF-424A does not have a line item exclusively for participant wages and fringe benefits. In most cases list participant wages and fringe benefits on the Contractual or Other line. 3. Administrative Costs. You must clearly list both the percentage and total funding dollar amount allocated to administrative costs as described at 20 CFR 641.856. In general S CSEP has a maximum allowed administrative costs total of 13.5 percent of the federal grant funds or up to 20 percent if you have requested and received approval from ETA per the instructions in Attachment V . The SF-424A does not have a line item for Administrative costs. Because your administrative costs may come from multiple line items you must clearly itemize and summarize your administrative costs separately. 4. Infrastructure Contributions to the Workforce System . You must clearly identify your infrastructure c ontributions to the workforce system. WIOA Sec. 121 h describes the responsibilities of required partners including SCSEP. Training and Employment Guidance Letter TEGL 17-16 Infrastructure Funding of the One-Stop Delivery System outlines how one-stop partners must determine and pay for infrastructure and additional costs in the local one-stop delivery systems. The SF-424A does not have a line item exclusively for infrastructure contributions. List your infrastructure contributions on the Administrative Contractual or Other line as appropriate. If you are not paying any infrastructure contributions into the workforce system explain why you are not doing so in the Budget and Program Narrative. This explanation alone does not relieve any SCSEP grantee from the requirements of WIOA Sec. 121 h but ETA will review an explanation before further discussions with a grantee.