Version 1 Revised 3/2019

Subrecipient Budget Guide

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Contents Types of Costs ............................................................................................................................................... 3

Direct ......................................................................................................................................................... 3

Indirect ...................................................................................................................................................... 3

Indirect Cost Calculation ....................................................................................................................... 3

Federally Approved Indirect Cost Rate ................................................................................................. 3

De Minimis Indirect Cost Rate .............................................................................................................. 3

Basic Instructions .......................................................................................................................................... 4

Budget Categories ......................................................................................................................................... 4

Revenue for the Budget Period ................................................................................................................ 4

Reimbursable Operational Costs .............................................................................................................. 5

Direct Contracted Service Costs ............................................................................................................ 5

Direct Travel and Training Costs ........................................................................................................... 5

Direct Consumable Supplies and Related Costs ................................................................................... 5

Incentives and Stipends Paid to Participants ........................................................................................ 6

Reimbursable Equipment Costs ................................................................................................................ 6

Direct Equipment Purchase Costs ......................................................................................................... 6

Direct Leased and Rented Equipment Costs ......................................................................................... 6

Direct Program Staff Costs ........................................................................................................................ 6

Salaries for Direct Program Staff ........................................................................................................... 6

Payroll Related Costs for Direct Program Staff ..................................................................................... 7

Direct Program Operational Costs ............................................................................................................ 7

Direct Occupancy .................................................................................................................................. 7

Direct Equipment Subject to Depreciation ........................................................................................... 8

Summary & Administrative Costs ............................................................................................................. 8

Appendix A Sample Negotiated Indirect Cost Rate Agreement ................................................................... 9

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Types of Costs

Direct Direct Costs are any costs that can be specifically identified with a particular project, program or activity

or that can be directly assigned to such activities relatively easily and with a high degree of accuracy.

Direct costs are split into Direct and Reimbursable categories in the FCDJFS budget. All Direct Costs that

are included in the approved budget will be reimbursed to the Subrecipient once we have approved an

invoice for the specified program submitted by the Subrecipient.

Indirect Indirect Costs are those costs incurred by the subrecipient in support of general business operations but

which are not attributable to a specific project or program. Indirect costs are listed as Administrative

costs in the FCDJFS budget. A percentage of Indirect Costs is reimbursed to the Subrecipient based on

their federally approved Indirect Cost Rate. If a Subrecipient has never had a federally approved Indirect

Cost Rate, then the Subrecipient may apply a 10% de minimis Indirect Cost Rate when calculating Total

Program Costs.

Indirect Cost Calculation

A Base amount is determined by adding together all Direct Costs and subtracting any items which are

not included. The Base amount is multiplied by the Indirect Cost Rate (Federally Approved or De

Minimis) to determine the total amount of Indirect Costs (Base Amount x Indirect Cost Rate = Total

Indirect Costs).

Federally Approved Indirect Cost Rate

A Negotiated Indirect Cost Rate Agreement must be provided to use this option when

completing a FCDJFS budget. The rate and base are both included in the agreement document.

When completing the budget in RIO, the rate is entered once and the base amount must be

entered by section.

See Appendix A for a sample Negotiated Cost Rate Agreement

De Minimis Indirect Cost Rate

By selecting 10% De Minimis Indirect Cost Rate in RIO, the Subrecipient certifies that:

1. The Subrecipient has never received a Federally negotiated indirect cost rate for any federal

awards.

2. The Subrecipient has received less than $35 million in direct federal funding for the fiscal

year requested.

The Base amount will always be Modified Total Direct Costs (MTDC) when using the 10% De

Minimis Indirect Cost Rate. When de minimis is selected in RIO, administrative costs will

automatically calculate based on MTDC.

Included in MTDC:

Program Personnel Salaries and Wages

Fringe Benefits (employer’s portion of employee retirement and health benefits, taxes)

Materials and Supplies

Travel

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Subawards and Subcontracts up to $25,000 USD (remainder is exempt)

Not Included in MTDC:

Capital Expenditures (buildings, land, office equipment and furnishings, alterations and

renovations; telephone networks, and motor vehicles)

Rental Fee and Maintenance Costs related to rental property

Student Tuition Remission and Student Support Costs (student aid, stipends,

dependency allowances, scholarships, and fellowships)

Participant Support Costs

That portion of each Subcontract and Subaward exceeding $25,000 USD (regardless of

the period of performance of the Subaward and Subcontract)

Hospitalization and other fees associated with patient care whether the services are

obtained from an owned, related, or third party hospital of other medical facility

Basic Instructions Please see the RIO Instruction Guide for screenshots and technical instructions for entering the budget

in RIO.

Complete the budget for the period that the proposed service will operate. The applicant agency

understands that they must provide an accurate representation of the actual costs that will be incurred

to operate the proposed program/services. FCDJFS anticipates that the applicant agency will carefully

consider the number of customers/participants to be served in relation to the total dollars requested. In

other words, the applicant agency must be prepared to explain that the costs to be incurred are

reasonable and necessary.

Budget Explanations—Applicant agencies should provide an explanation for each budget item in the

Cost Explanation section provided in order to describe the necessity and reasonableness of each

proposed cost. Statements should be clear, concise, and specific and should not simply restate the

information presented in the budget. Applicants must complete ALL pages of the budget documents. If

a section is not applicable enter N/A in the explanation section.

Budget Categories

Revenue for the Budget Period Additional Funding for Proposed Program

If the applicant agency has multiple funding sources for the proposed program/services, the agency is

responsible for entering a description and the amount confirmed and/or pending in this section by type

of funding (i.e. federal, state, local, etc.).

For all proposed program funds that are listed as pending (other than the FCDJFS request), the applicant

agency must explain how the proposed program/services will be accomplished should funding not be

awarded.

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Total Projected Revenue for the Fiscal Year

Applicant agency must include ALL funds and revenue earned or received by the applicant for the

agency’s annual fiscal period. The amount for the proposed program will populate once the budget has

been completed.

Reimbursable Operational Costs Direct Contracted Service Costs

The applicant agency must list all contracted services. Costs may be entered using an hourly calculation

or a flat rate – not both. Any and all costs associated with contractor transportation must be

incorporated into the subcontract agreement.

List the legal and if applicable, incorporated name(s) of subcontracting organization(s).

Each contractor must be listed separately.

A contract agreement must be provided to FCDJFS for each contractor.

o At a minimum contractor agreements must contain a description of services, basis for

fees, estimated time required, contract amount and period, and termination provisions.

Subcontractors cannot be officers or employees of the applicant agency.

Direct Travel and Training Costs

The applicant agency must enter costs for each relevant category. If an amount is entered in other, it

must be fully described in the explanation section.

Typically both vehicle expenses and mileage reimbursement are not included; However if both

are appropriate, the applicant agency must provide details in the explanation section.

Mileage reimbursement is based on applicant agency’s approved rate, but cannot exceed $0.50

per mile. The most restrictive rate must be used.

Conference, meeting and training costs must be directly related to the program/services

proposed.

Purchased transportation costs must be for program participants only (COTA bus passes for

example).

Transportation costs associated with a Contractor must be entered in the Direct Contracted

Service Costs section.

Direct Consumable Supplies and Related Costs

The applicant agency should list supplies, a description and explanation for supply costs.

Costs should be reasonable and directly benefit program participants.

Memberships and Subscriptions must be relevant or necessary to the proposed

program/services.

Advertising for an unfilled position is allowable if the position is necessary for the proposed

program/services.

Food and entertainment are considered unallowable costs. However, nutritional meals for

participants and developmental activities may be considered reasonable program related costs.

Prior approval by FCDJFS must be attained for such costs.

Promotional items and memorabilia are unallowable costs.

Costs of goods or services for personal use of the applicant agency’s employees are unallowable

State and Local taxes for not–for-profit organizations are unallowable.

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Incentives and Stipends Paid to Participants

Prior approval from FCDJFS on whether or not incentives/stipends are allowable for the proposed

program/services must be attained before entering amounts in these sections.

Incentives are “any factor (financial or non-financial) that provides a motive for a particular

course of action.”

Stipends are a fixed sum of money paid periodically for services.

Incentives and/or Stipends are allowable costs as long they meet state and federal regulations

applied to TANF “non-assistance” (i.e. nonrecurring, short-term, will not extend beyond four

months), are tied to positive performance goals, and are consistent with the service being

provided.

An incentive/stipend may NOT be used solely for meeting attendance goals.

Any form of Gift card is considered an unallowable expense.

Reimbursable Equipment Costs Direct Equipment Purchase Costs

The applicant agency will enter items that will be purchased for use of the proposed program/services

during the award period.

Purchased equipment cannot be allocated 100% to the proposed program/services if the

program/services will also receive funding from another source in addition to the amount

requested from FCDJFS in this budget.

The percentage of FCDJFS funding for the proposed equipment purchase may be calculated by

comparing the number of FCDJFS-funded participants to the number of overall program

participants

Direct Leased and Rented Equipment Costs

The applicant agency shall enter any equipment that will be rented or leased for use of the proposed

program/services during the award period. Enter the type of equipment, the model and year, the

number of each equipment item and the cost for one piece of equipment.

Equipment that is leased or rented must be acquired specifically for this program.

The leased and rented equipment cannot be allocated 100% to the proposed program if the

program will also receive funding from another source in addition to the amount requested

from FCDJFS in this budget.

Direct Program Staff Costs Salaries for Direct Program Staff

The applicant agency shall be responsible for entering requested information for each employee that

will provide direct services to program customers/participants.

List only staff positions (full or part-time) whose time will be spent working directly on the

proposed program.

Pro-rate salaries for vacant positions based on the anticipated hire date.

Employee Full-time Equivalent (FTE) is the measure of time the employee works for the

applicant agency and the measure of time the employee is directly involved in the proposed

program/service.

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Percentage charged to FCDJFS: for each position listed enter the percentage of time that the

employee will dedicate to the proposed program

Actual Benefit costs that are paid by the applicant agency for the budget period must be entered

for each positions listed. Allocation percentages of wages and benefits must be the same.

Charges for salaries and wages must be based on documented payrolls approved by a

responsible official of the applicant agency.

Timecards or personnel activity reports must be maintained by the applicant agency for each

staff position listed and should coincide with the agency’s pay periods.

. An employee’s salary cannot be allocated 100% to the proposed service/program if the

applicant agency will receive funding from another source in addition to the amount requested

from FCDJFS in this budget.

The percentage of FCDJFS funding for the proposed salaries may be calculated by comparing the

number of FCDJFS-funded participants to the number of overall program participants.

Payroll Related Costs for Direct Program Staff

Enter the percentage paid for both social security and workers compensation.

Once the actual percentage rates are entered the Total Payroll (PR) costs will calculate for Social

Security/Medicare and Worker’s Comp.

The applicant agency must also enter the agency’s actual % rate for unemployment Insurance,

but these rates will not be included in any calculations.

Direct Program Operational Costs Direct Occupancy

The applicant agency must select Occupancy or Depreciation and enter the requested information. Do

not complete both of these sections.

Occupancy Costs are direct program costs that consist of all regularly recurring costs associated

with the land and building that will be used for the proposed program.

Enter the utility costs ONLY for the space that will be used for the proposed program.

If the applicant agency owns the space in which the proposed program will operate, complete

the depreciation table.

The computation of the depreciation cost must be based on the acquisition cost of the asset

excluding the cost of land.

When the depreciation method is followed, adequate depreciation records indicating the

amount of depreciation taken each period must also be maintained. Depreciation should be

entered monthly on the financial statement specific to the FCDJFS subaward.

Rental costs are allowable to the extent that the rates are reasonable in light of the following

factors: Rental costs of comparable property, Market conditions in the area, Alternative

available properties, The type, life expectancy, condition, and value of the property leased

The costs for heat, light, and water may be included if specific to space occupied by the

proposed program and not included in the rent.

The occupancy cost cannot be allocated 100% to the proposed program if the program will also

receive funding from another source in addition to the amount requested from FCDJFS in this

budget.

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Direct Equipment Subject to Depreciation

The applicant agency will enter direct equipment items that will be depreciated during the budget

period.

Direct Equipment Subject to Depreciation is a direct cost that compensates the applicant agency

for the use of equipment on hand to support the proposed program.

Equipment costs are subject to the “most restrictive” depreciation threshold policy established

by the applicant agency or by Franklin County (Franklin County’s threshold is $5,000.00 per

item).

The applicant agency’s depreciation policy should be clearly written.

The computation of the depreciation cost must be based on the acquisition cost of the asset

excluding the cost of land.

Summary & Administrative Costs The summary is a recap of the proposed budget and will populate once the other sections of the budget

have been completed. The applicant agency will not enter information on this page. While individual

administrative costs are not entered into the budget, a brief explanation of how the costs will be used

by the Subrecipient must be provided on the Admin Costs page in RIO.

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Appendix A Sample Negotiated Indirect Cost Rate Agreement

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