BUDGET PREPARATION

1. BUDGET PREPARATION Presented By Sue Muzillo Finance/Grant Unit Coordinator

2. Budgets It’s 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?

3. Budgets It’s 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

4. 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)

5. 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)

6. 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

7. Budget Categories • Salaries • Benefits • Purchased Services • Supplies and Materials • Capital Outlay • Other

8. 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

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. WRAP UP Presented by Cliff Akujobi, Manager Office of Adult Learning

21. 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.

22. 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.

23. 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.

24. Questions

25. Workforce Investment Act Bidder’s Conference 2009 Thanks!